The speed of economic growth is often discussed as being exponential. This mean that the growth rate is constant, i.e. the percentage of growth is constant per year. The figure below demonstrates that the growth was linear in the developed countries (two periods are obsereved, however). This is the ecolotion of real GDP per capita. It removes the popualtion growth that was exponential in the US, for example (>1% per year). Personal growth was linear, i.e. a person has constant increment of real GDP (income) per year. This makes the rate of growth to be an inverse fucntion of the attained level of GDP per capita. The rate of real economic growth has been decaying as an inverse fuction of GDP per capita, which is practically the inverse function of time considering the linear GDP pc growth. There is no possibility to retain constant rate of (total) real GDP growth when population does not grow. In the 21st century, the USA suffers very low population growth below 1% and even 0.5% per year. Biden has successfully resolved this problem - immigramtion! Russia also has a very high input from work immigration. Both countries are attaractive for people looking for work and better life.
Subscribe to:
Post Comments (Atom)
Turkey outperforms Germany economically in the 21st century
Maddison project database ( MPD ) is a famous source of real GDP data for the whole world. Let's compare real GDP per capita for Turke...
-
These are two biggest parts of the Former Soviet Union. To characterize them from the economic point of view we borrow data from the Tot...
-
These days sanctions and retaliation is a hot topic. The first round is over and we will likely observe escalation well supported by po...
No comments:
Post a Comment