Tuesday, September 21, 2010
I know this is not a novel observation, but I wanted to put up a reasonably current graph documenting the fact that the US economy has been growing more and more slowly over time. The above shows the BEA's "change over prior period" in real GDP (blue), a linear fit to that (black) and the compound average growth rate over the prior ten years (red). The data go through 2010 Q2. Any way you look at it, the US has been experiencing gradually slowing growth for many decades.
Given deleveraging and peaking oil, I doubt the long-term trend is about to improve.