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CREDIT SUISSE: These 4 Charts Look Terrible For Future US Growth

CREDIT SUISSE: These 4 Charts Look Terrible For Future US Growth

giant african land snail

Wikimedia Commons

Giant African land snail

GDP growth depends on several factors, including growth in the labor force, improvement in labor force productivity, and expansion of public and private capital.

And according to Credit Suisse's Neal Soss, recent trends in these factors don't bode well for the future of economic growth in the economy.

This continues a trend of economists who believe that the US economy is in structural decline, and will not escape sluggish growth for a long time to come.

The first chart shows that labor productivity slowed from 3.5% in the late '90's to under 1% today.

slow growth

Credit Suisse

Chart number 2 shows the decline in labor force participation, as the US' aging population continues to drop out of the the workforce.

growth

Credit Suisse

Chart 3 shows the slowdown in private capital accumulation, measured through net business investment as a share of GDP. According to the report, "This ratio fell to multi-decade lows in the wake of the Great Recession, and the rebound since has been tepid. Slower growth in capital accumulation today is a downside factor for productivity in future years."

investment

Credit Suisse


The final chart shows the decline in government investment in infrastructure. While 2009-10 stimulus supported government infrastructure, it has since "declined sharply as as state and local finances deteriorated."

public investment

Credit Suisse


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