Morgan Stanley's EM Head: Trump Can't Get 4% Growth

The video discusses the challenges of achieving a 4% economic growth rate in the US. It highlights two main drivers of growth: labor force expansion and productivity increases. However, demographic changes, such as a slowdown in population growth, pose significant challenges. Even with tax cuts and deregulation, reaching 4% growth is unlikely without substantial immigration or changes in labor force participation. Historically, growth was supported by a higher labor force growth rate, which is now much lower. The best achievable growth rate is projected to be around 2.5% due to these demographic shifts.

What challenges are mentioned regarding achieving a 4% growth rate?

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What potential solutions are suggested to increase the labor force participation?

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