When the government is hooting and hollering over 1.7% annual growth, it’s time to admit we’ve entered a new paradigm. In the past, you would have expected 4-5% growth coming out of a recession. Now, anything above the rate of population growth is treated as a miracle.
Growth as we used to know it isn’t coming back. If the global economy ever does show signs of life, we’ll just be slammed by unaffordable oil again.
What does that mean for economic policy?