Stanley Druckenmiller makes a pretty compelling case that we're in a golden age right now. Endless free content, cheap deliveries, cheap travel, etc. That GDP might be largely outdated as a measure of progress.
For a decade now we’ve had extremely cheap debt and very weak growth. What are the reasons why?
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Interview link?
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one cause of low real interest rates under orthodoxy economic theory would in fact *be* low economic growth — see e.g.https://www.bankofengland.co.uk/working-paper/2015/secular-drivers-of-the-global-real-interest-rate …
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That's a very long story. If I have to start a decade ago instead of in the late 70's, increased trade transition & recycled dollars into treasuries (low rates) which stimulated very tech investment (low rates preference for R&D, low hurdle cost investment)- wages stagnate while
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Real estate and financial assets appreciate. Stag wages, higher housing & insurance cost higher individual debt, eventually crimps the final demand while dollar fell driving costs higher so stagnation in many areas, other than tech and medical I suppose
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Cheap not only in nominal interest rate, but also in how careless lenders become. Startups like Uber strive on spending cheap money, driving down prices, with no hope whatsoever to repay their lenders / investors. This lowers nominal GDP. Encourages dishonest behaviours too.
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