What if 1% growth is the new norm going forward?

[AJI]

Given that banks are not supposed to be taking risks with lending and as the government requires more taxes and more borrowing to fund the growing population. Does all this mean that the new model for capitalist countries means that economic growth will never be what it used to be of days gone by?

Have we already reached the new normal growth figures, and aything over 1% meaning a country is 'doing well'?

I keep seeing on the news that everything is doom and gloom because countries in the eurozone and the US are not seeing growth figures of 3% and above. What if this figure is never likely to happen in the future?

[Esseesse]

We need to stop using GDP as a measure of a countries wellness anyway. Wouldn't be surprised if 'real' growth has been closer to 1% normally for some time. It has certainly been less than GDP.

Edited by Esseesse on Wednesday 17th August 14:08

[Digga]

AJI said:

aything over 1% meaning a country is 'doing well'?

Not when inflation is at nearly 5%.

Inflation + 1% might be okay'ish'.

[Welshbeef]

How about average personal debt both secured and insecured.

I'd say that is a great measure. If total personal debt is high then you cannot spend you cut back on everything and take years to pay it down. But if debt is low then there is a realistic choice of spending.

That is a great position to be in and an ambition to all. Sure we know leverage can work wonders but it also can not work at all and you lose out big time. I've played the leverage game and have been lucky without needing to play the long game. Maybe im getting more risk averse with age or changing with the time.