Are We Destined for a Slow Growth Future?

The video discusses the concept of secular stagnation, highlighting the slow economic growth in the US post-Great Recession. It examines the limitations of supply-side policies and emphasizes the importance of demand-side solutions. The speaker critiques mainstream economic views, particularly the reliance on monetary policy, and advocates for fiscal stimulus and wage growth to address economic challenges. The discussion includes historical perspectives on economic policies and their impact on household debt and borrowing.

What is the primary focus of secular stagnation as discussed in the video?

• Rapid economic growth

• Short-term economic fluctuations

• Long-term slow economic growth

• Immediate recovery post-recession

What is the 'new normal' according to the supply-side perspective?

• High inflation rates

• Rapid economic recovery

• Limited economic growth potential

• Increased labor force participation

Which policy response is suggested to address secular stagnation?

• Encouraging more imports

• Reducing government spending

• Fiscal stimulus and tax cuts

• Increasing interest rates

What is a potential long-term solution to rising inequality?

• Encouraging more imports

• Reducing fiscal stimulus

• Restoring shared prosperity and wage growth

• Increasing interest rates

What is a common misunderstanding about Keynesian economics?

• It solves short-term problems

• It focuses on long-term growth

• It promotes deflation

• It addresses market imperfections

Why is monetary policy considered less effective in the future?

• Sustainability of household borrowing

• High potential for interest rate cuts

• Limited room for further interest rate cuts

• Increased government intervention

What was a critical factor in the effectiveness of past monetary policies?

• Increased government spending

• Stable global markets

• High nominal interest rates

• Sustainable household borrowing