The beginning of the end of American prosperity?
Are the days of economic prosperity a thing of the past? It would seem so, according to a new working paper published by economics Prof. Robert Gordon of Northwestern University. The Fiscal Times reported on the paper, titled "Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds." "The rapid progress made over the past 250 years could well prove to be a unique success tale for the history books, but not a sustainable path for the future," according to the Fiscal Times.
Edinaldo Tebaldi, associate professor of economics at Bryant, disagrees that American prosperity may be coming to an end. Gordon "claims that income inequality is the 'the most important' factor holding down future productivity growth," Tebaldi noted, but there are "conflicting views regarding the relationship between inequality and growth, and some analyses find no relationship between growth and inequality — others show that increased inequality promotes economic growth.”