This Theory explains why the U.S. Economy Might Never Get Better

This Theory explains why the U.S. Economy Might Never Get Better

Larry Summers, the U.S. Treasury Secretary under Former President Bill Clinton, has revived a depression-era theory about economic downturns called “secular stagnation”. Since the U.S. economy has been struggling to reinvigorate itself following the recession of the late 2000’s, there is evidence to believe that America’s slow recovery is no longer a matter of the “business cycle” but more of a permanent lag on modern society. Experts point to many factors which include the decrease in population growth, outcomes of the internet revolution on private enterprise, and the smaller amounts of capital investment needed to expand a business as reasons not to overlook “secular stagnation”.

 

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