I am following The Economist's weekly data table and wondering why GNP growth has stopped across the West. In the USA, the size of the workforce has fallen by over 1 million people in the past year, according to the Bureau of Labor Statistics. It’s now 169.1 million, compared with 170.4 million last July, according to agency data. The strongest factor is the ongoing retirement of baby boomers. The youngest boomers are now in their early 60s, and their continuing departure from the workforce is “the most steady thing pushing the rate lower. That’s the clear, sustained decline.
Europe is no different. But the most dramatic case is Japan, which was once the most dynamic economy of all. More than stagnating, it is contracting rapidly. If they start to sell their mountain of dollar savings, the dollar will lose its value even more.
Difficult times are a-coming. I have played my cards and shall sit on the side as a kibitzer.
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