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1/18/23, 1:42 PM W7: Limits to Long-term Economic Growth – ECON102 D005 Fall 2022
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W7: Limits to Long-term Economic Growth
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Week 7 Discussion Post 7
What are the limits to the U.S. long-term economic growth? Is there anything
that our government can do to address these limits, or would it be a bad idea to
try?
Your initial discussion posts must be submitted by midnight, Day 3 and then your
responses to 2 of your classmates’ posts by have to be submitted by midnight,
Day 7.
All Threads
Collin Rhodes – Week 7
Collin Rhodes posted Jan 18, 2023 6:24 PM Subscribe
Factors that limit the United States’ long-term economic growth are inflation, uneven
growth and development rate, natural resource exhaustion, and excess government
spending. Inflation jeopardizes everyday Americans’ quality of living, which may prevent
consumer spending, leading to a recession. High government deficit spending can lead to
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persistent inflation in the United States, continually rising interest rates, slowing economic
growth, increased interest payments on loans, and growing generational imbalances.
Depleting natural resources like coal will stunt economic growth and development and
burden future generations of workers.
The American federal and state governments have already addressed these issues to
counter the adverse effects on our economy. The federal government eases the common
citizen’s burden by reducing taxes during high inflation periods to encourage economic
growth and prevent a recession. With a national debt this size, and the increased difficulty
changing government budgets and spending, this is the best we can do for now.
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Week 7 Discussion post
Jonathan Malcolm posted Jan 18, 2023 5:41 PM Subscribe
Good Evening class,
Almost done with this class! Let’s look at the limitations that there are on economic growth
in the US. The Biggest I see is the use of natural resources. There is definitely no endless
supply of them, at lease that we know of yet. So seeing how when they become scarce we
need to find different ways around them, look at all the solar, wind, and hydro farms out
there as a new way to source power! Another limitation would be inflation on the
economy. While companies are struggling due to inflation and the public people are
struggling during inflation the economy can not continue to grow. The government can use
monetary policy to try and police these issues, cutting down inflation. The government is
also doing things like these tax credits for going solar, incentivizing people to switch and
cut down our carbon footprint. Some people might night be happy about this though,
feeling like the government is being too controlling. Either way you spin it people will be
upset, that’s just the world we live in now!
-Jonathan
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W7: Discussion
Bessy Guevara posted Jan 18, 2023 4:56 PM Subscribe
Hello Dr. Wu and classmates,
For this week’s assignment, we need to discuss the limits to the U.S. long-
term economic growth and if the government can do something to address
these limits.
The limitation to the growth of the U.S.’s long-term economy is too much
government spending. According to the 2022 Index of Economic Freedom, the
United States government spending adds up to 389 percent of the total output
(GDP) over the last three years. Government overspending can lead to
inflation; According to an article by Adam A. Millsap, “Government subsidies
arterially increase demand. The result is higher prices that disproportionately
harm the working poor and middle class.” Millsap, 2021). Inflation can create
unpredictability for investors and can lead to fewer investments, consequently,
less economic growth. The government can address these by maintaining a
stable fiscal policy that aims towards reducing the risk of inflation and tax
increases.
Government overspending can result in crowding out private-sector
investments. According to research published by KYKLOS, “an increase of
government consumption by 1% of real GDP immediately reduces
consumption (investments) by approximately 1.2% (0.6%).” (Forcer, Sousa,
2011). The government can address this by limiting the expenses on things
that help the private sector investments, like building highways.
Thank you.
I hope everyone is having a great week.
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Millsap, A. (2021). The High Costs of Too Much Government Spending.
Forbes. https://www.forbes.com/sites/adammillsap/2021/08/06/the-high-
costs-of-too-much-government-spending/?sh=747552d4ad67
Furceri, D., Sousa, Ricardo, M. (2011), The Impact of Government Spending
on the Private Sector: Crowding-Out versus Crowding-in Effects. KYHLOS.
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Week 7 Scaggs
David Scaggs Jr posted Jan 18, 2023 2:24 PM Subscribe
Good afternoon everyone,
Economic growth is defined as the increase in the market value of an economy’s
commodities and services over time. Long-term economic growth is beneficial for a nations
prosperity from generation to generation. There are limits that can hinder this success and
one of those limits is demographics. The US is a multicultural nation within varying degrees
of background from age, race and skill labor. The nation has different demographics that
list out different aspects of population in relation to economics that include unemployment
rates, workers by age group, number of retirees, and people with disabilities that keeps
them from working. Right now, we are looking at the lowest unemployment rate within the
last few decades, but if the numbers where to rise above average unemployment rates,
there would be a noticeable downturn in the economic input and output. A good example
or close to one would be the 2020-21 Covid pandemic when many workers either had to
work from home or were let go due to lockdown and restrictions. Another way to look at
the demographics is the age groups. Most able body individuals that are working are
between the ages of 16 and 65. I say 65 because normally people are usually retired by
that age. The other key thing to look at with the retirement age is also the life expectancy
of those retirees. Thanks to advances in medicine and technology, people are also living
longer which means that retired pool with see an influx of
more
people that could match
the labor force or even surpass it. The government may try to address the issue by
extending the retirement age another 5-10 years, but the question remains to asked: are
people willing to work longer than expected?
SSgt. David Scaggs
https://www.forbes.com/sites/adammillsap/2021/08/06/the-high-costs-of-too-much-government-spending/?sh=747552d4ad67
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Week 7: Economic Growth
Justin Shon posted Jan 18, 2023 2:35 AM Subscribe
Economic growth is measured in terms of an increase in the total market value of products
and services produced in a given time period. Increase in labor force, capital goods and
human capital, and advanced technology can contribute to economic growth.
There are several limitations that the U.S. faces to achieve long-term economic growth.
The first limitation is an increasing aging population with low participation of labor force.
The work hours per capita is declining due to increasing life expectancy compared to
average retirement age. The second problem is ineffective educational system in some
areas. The cost of higher education is very high in the U.S. This may lead to failure to
produce quality workforce. Next limitation is inequality in income. If low or mid class
income are transferred to higher class, spending and demand will decrease, which will slow
down economic growth. Another limitations are scarce natural resources and
environmental issues. Exhausted resources and global warming challenges the U.S. to
acquire needed materials to produce goods. Lastly, inexpensive foreign labor coupled with
advanced technology in other countries might make the U.S. less favorable in international
trading.
Our government can address some of these limits to achieve long-term economic growth.
Reduce inflation in education cost can help more people acquire higher education. Also,
government can strictly enforce climate policy to reduce climate changes. Also, allowing
foreign, high-skilled workers into the U.S. may help our economy.
Reference
Gordon, R. (2012). Is U.S. economic growth over? Faltering innovation confronts the six
headwinds. NBER, 18315.
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Jack Daniels Wk 7
Jack Daniels posted Jan 18, 2023 12:56 AM
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The limits to long-term economic growth in the U.S. in my opinion are human capital,
physical capital, and certain natural resources. The reason I think human capital is going
to limit our growth is because although according to thebalancemoney.com based on data
from the Organization for Economic Cooperation and Development (OECD) our test
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W7 Perez
Ruben Perez posted Jan 18, 2023 12:00 AM
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Hello class,
While speaking about long-term factors that will limit the growth of the economy of the
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Week 7 Discussion
Trey Jarrell posted Jan 17, 2023 9:54 PM
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Good evening classmates and professor,
Looking at the U.S.’s long-term economic growth limitations, we see four major concerns.
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W7: Limits to Long-term Economic Growth
Marcus Pegques posted Jan 17, 2023 5:13 PM
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Last post yesterday at 8:38 PM
by Bernard Vinson
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Hello Everyone,
We have arrived at week seven and our discussion focuses on economic growth.
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Week 7
Justin Brannon posted Jan 17, 2023 7:31 PM
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Last post yesterday at 8:27 PM
by Bernard Vinson
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Good Evening Class,
Welcome to week 7 we are almost finished There are few limits to economic growth
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Week 7 : Limits on long Term Economic Growth
Christopher Fowler posted Jan 16, 2023 10:22 PM
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Hello classmates,
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Week 7 Discussion Post
Shaun Richardson posted Jan 16, 2023 7:00 PM Subscribe
Greetings classmates,
I would argue the limits on U.S. long-term economic growth come down to: population size and
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Limits to Long-term Economic Growth
Liza Escalante posted Jan 16, 2023 1:11 PM • 323 Words
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Several issues, including geopolitics, productivity growth, and resource
restrictions, can limit the United States’ long-term economic development. These
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WK7 DB
Bernard Vinson posted Jan 16, 2023 12:26 PM
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Hello Class,
Four items limit the United State’s long-term growth, including technological knowledge,
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Martin Week 7
Martin Pinedalopez posted Jan 15, 2023 12:01 PM
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Hello everyone, hopefully, you all had a great weekend; I’m grateful I’ve been able to learn
alongside everyone as we are close to completing this course. This week we learned about
economic growth and economic development. Before, I would have categorized them as
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