King, Steven D. When wealth disappears

King, Steven D.
October 6, 2013 The New York Times (article)
"When wealth disappears"


"But the numbers no longer add up. Even before the Great Recession, rich countries were seeing their tax revenues weeken, social expenditures rise, government debts accumltate and creditors fret thanks to lower economic growth rates. We are reading end times for Western affluence.... From 2007 to 2012, annual growth amounted to just 0.8 percent."

I'm surprised to know that anuual growth rate of US is merely 0.8 percent over the last 5 years. The thriving technology entities such as google, facebook, apple are apparently expanding their influence all over the world, even seeking the opportunity in China, the potential vast market with the diffusion of internet. Google and facebok CEO's names are listed on Fortune megazine annually as the most "wealthy" people in the world. Nevertheless, US economy in general suffers from low economic growth. Federal reserve of South Korea (Korean bank), one of Asians "tigers" in terms of the miraculous economic growth since 1970 lowers down the expected economic growth rate of 4.0% in 2014 to 3.8% due to the stagnent global economy. South Koreans worry that it is only 3.8% growth rate instead of 4.0% as they had expected. Compared to the growth rate of 0.8%, 3.8% seems much more plasant. What factors into the low economic growth rate of US? I read the headline in CNN that the country benefiting from US federal government shut-down is ironically China because Chinese political and economic stanse and power in the world grows as US is not likely to end shut-down in the near future, facing default at the same time.


"That means a higher retirement age,... less borrowing from aboard, less reliance on monetary policy that creates unsustainable financial bubbles, a further opening of world trade and over the medium term, a commitment to sustained deficit reduction"

This is the author's solution to overcome the hardships of US at present. But it's easy to say but hard to implement them. I want to know why the anual economic growth rate has been so low even after US economy seemed to recover from the Lehmen Brothers shock.