Economic growth, or a slowdown in US productivity?
Economic growth, or a slow down in overall productivity? Analyst Karlsson argues that what many economists had announced as an uptick in employment growth late last year and early this year was actually a slowing of US productivity.
It now appears that there wasn't much of a growth acceleration in the US after all. Terms of trade adjusted GDP rose a mere 1.2% at an annualized rate and national income was only slightly stronger during the first quarter.
This means that the somewhat higher employment growth we saw during late last year and early this year didn't really reflect as most people thought, an acceleration of economic growth from the "so low it feels like a recession" level that the "Obama recovery" of the last three years has been characterized by. Instead it simply reflected a decline in productivity
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