Spoiler: In a previous post I argued that the lower growth of Swedish GDP per capita is a consequence of our own choice. As our incomes grew over time, we began to consume more services instead of goods. The shift in demand led to a reallocation of labour and capital from the more productive goods-producing industries to services. Thus, Services industries share of GDP has increased over time at the expense of Manufacturing industries. This led to decreasing growth rates. Furthermore, the reallocation of capital from Manufacturing to Services reinforced this decrease of growth rates. This development is a consequence of increasing prosperity.
We need more people to work longer!
We need more people to work longer!
We need more people to work longer!
Spoiler: In a previous post I argued that the lower growth of Swedish GDP per capita is a consequence of our own choice. As our incomes grew over time, we began to consume more services instead of goods. The shift in demand led to a reallocation of labour and capital from the more productive goods-producing industries to services. Thus, Services industries share of GDP has increased over time at the expense of Manufacturing industries. This led to decreasing growth rates. Furthermore, the reallocation of capital from Manufacturing to Services reinforced this decrease of growth rates. This development is a consequence of increasing prosperity.