4/14/09

Two facts and two possibilities

Fact the first: In recent years, the U.S. economy has grown at slower than historical rates, even in boom times.

Fact the second: In recent years, much of the growth in the U.S. economy has come from the financial sector.

Possibility the first: The slow rates of growth were caused by financialization, and the U.S. can return to real growth by reining in the financial sector.

Possibility the second: The growth of the last several decades was a mirage produced by financialization; in reality, the modern U.S. economy is only capable of a very modest rate of year over year growth.

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