PETER BRUCE: Build, build, build to fast-track the economy
I am going to introduce to you a concept in economics called secular stagnation. It might be what’s wrong with us.
Secular stagnation is a Great Depression concept brought back to life in 2013 by Larry Summers, once Bill Clinton’s treasury secretary. It describes the phenomenon of low economic growth despite the conditions being ideal for growth. Low interest rates, low inflation, low unemployment. Why can even advanced economies not grow faster? Where’s the demand?