Why it makes sense to build the goddamned train

08 September 2019 - 00:00

It may not be fair on a Sunday but I am going to introduce to you a concept in economics called secular stagnation. It might be what's wrong with us.

Secular stagnation is a Great Depression concept brought back to life in 2013 by Larry Summers, once Bill Clinton's treasury secretary. It describes the phenomenon of low economic growth despite the conditions being ideal for growth. Low interest rates, low inflation, low unemployment. Why can even advanced economies not grow faster? Where's the demand?..

This article is reserved for Sunday Times subscribers.

A subscription gives you full digital access to all Sunday Times content.

Already subscribed? Simply sign in below.

Registered on the BusinessLIVE, Business Day, Financial Mail or Rand Daily Mail websites? Sign in with the same details.

Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.