Thursday, August 16, 2012
Current GDP Growth Merely Due To Population Growth?
officially in recession. But, assuming the economy is growing at 1.5% per annum, and assuming that per capita contribution to GDP has remained constant (which admittedly could be a faulty assumption given that a large percentage of recent population growth has been due to the immigration of uneducated, low-skilled workers), 1.2% annual population growth should equal a 1.2% annual growth of GDP. Thus, the economy is actually growing at 1.5% - 1.2% = .3%.