Author: Satyajit Das
Quotes of Author: Satyajit Das
The world is entering a period of stagnation, the new mediocre. The end of growth and fragile, volatile economic conditions are now the sometimes silent background to all social and political debates...A confluence of influences is behind the ignominious end of an era of unprecedented economic expansion. Since the early 1980's, economic activity and growth has been increasingly driven by financialisation - the replacement of industrial activity with financial trading, and increased levels of borrowing to finance consumption and investment. By 2007, US$5 of new debt was necessary to create an additional US$1 of American economic activity, a fivefold increase from the 1950s.... Ever-increasing amounts of debt now act as a brake on growth.These financial problems are compounded by lower population growth and ageing populations; slower increases in productivity and innovation; looming shortages of critical resources, such as water, food and energy; and man-made climate change and extreme weather conditions. Slower growth in international trade and capital flows is another retardant. Emerging markets that have benefited from and, in recent times, supported growth are slowing. Rising inequality has an impact on economic activity. book-quote
