Konstam: Slowing Productivity Risks Stagnating Economy

The video discusses the decline in GDP growth and its implications for the American economy, focusing on productivity and labor input. It examines the Federal Reserve's market dots and equilibrium rates, challenges in boosting productivity, and the housing market's role in demand. The discussion also covers negative interest rates and potential policy choices to address economic challenges.

What is the main concern if labor input stagnates or grows less than half a percent?

• Increased unemployment

• Higher GDP growth

• Lower wages and profits

• Improved public policy

What is considered a major contributor to growth before the crisis, according to the second section?

• Technology sector

• Housing market

• Automobile industry

• Healthcare sector

Why might negative interest rates be a feature for the next 5 to 10 years?

• To increase government spending

• Because of disappointing demand and bank regulation

• To encourage more home ownership

• Due to high inflation

What is one potential policy response to make negative rates more livable?

• Increasing interest rates

• Taxing cash and creating deep negative yield curves

• Reducing government debt

• Increasing cash reserves

What is a challenge for financial markets with negative interest rates?

• Decreased investment in technology

• Increased competition

• Survival of commercial banks

• Higher loan interest rates