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Is GDP stagnation actually a problem or is it made out to be a problem (for a first world country)?
by emsy 8y ago
Is GDP stagnation actually a problem or is it made out to be a problem (for a first world country)?
- sandworm101 8y agoIt is a problem when savings, retirement, is based on the assumption that the economy will continue to grow. A shrinking economy throws the entire live-off-investments retirement rubric out the window. Any government back plans, social security etc, become unstable and/or have to increase the contributions (taxes) paid by those still working. It isn't as much a problem for people who earn money for actual work, as opposed to investors. Those earning wages may see those wages increase as labor becomes scarce. Unless of course they find themselves having to carry everyone else.