Job Training, Higher Wages Needed to Spur US Economic Growth

Posted on March 8, 2018

An analysis by the McKinsey Global Institute summarized in the Harvard Business Review concluded increasing consumer demand for goods and services is key to restarting growth across advanced economies. U.S. economic growth has averaged only 2 percent per year since 2010, while productivity growth, a key to increasing living standards, has been “languishing near historic lows since the financial crisis.” The report cites slowing population growth, flat wages and weak corporate investment as contributing to lower demand. This trend can be potentially reversed by “focusing on productive investment as a fiscal priority, growing the purchasing power of low-income consumers with the highest propensity to consume, unlocking private business and residential investment, and supporting worker training and transition programs to ensure that periods of transition do not disrupt incomes.”

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