Tag Archives: David Leonhardt

The No-Growth Trap: An Endless Loop

I came across this story in The National Interest after the New York Times’s David Leonhardt tweeted it.  Densely written, the incisive view on our stagnant economy and politics is well worth your time.  My only quabble is this sentence.

“The borrowing that the government needs to do to fund its shortfall absorbs the savings that in a fully employed economy would otherwise go into investments in new factories, new equipment, new office buildings, new research and new houses.”

While we’re good at designing products in this country, the actual assembly of them is farmed out to foreign countries.  I see little incentive for American companies to build new factories and engage in production at home.  Corporate disinterest in domestic manufacturing will continue the stagnating of the U.S. economy.