The reason why the long run matters

This is rather basic, but we all need to brush up the basics every now and then. This post is to all the people who claim that it doesn’t matter whether we have 2 or 3 per cent growth/year…

The annual growth-rates of the 4 different graphs are 1, 2, 3 and 4%. You try and guess which of the 4 scenarios I would prefer to see my grandchildren grow up in. The situation where the income has grown to a level more than 7 times as high as now, or the one where it has increased by 64 per cent? Hmm…

September 21, 2006 - Posted by | Economics

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