All NEW Investors: Your gift matched $ for $ this week! GIVE NOW

What a 7 percent growth rate could look like

Amy Scott Mar 5, 2015
HTML EMBED:
COPY

What a 7 percent growth rate could look like

Amy Scott Mar 5, 2015
HTML EMBED:
COPY

Chinese Premier Li Keqiang announced a new growth target of 7 percent for the world’s second-largest economy in a speech to the National People’s Congress in Beijing on Thursday. That would be the lowest growth rate there since a brief dip back in 1989-90.

Compare that to the United States, where growth last year was 2.4 percent.

Just for fun, we looked at whether 7 percent growth is even possible here in the United States. How would we start?

“We could all go out and have lots of babies,” says Lakshman Achuthan, co-founder of the Economic Cycle Research Institute.

More babies would mean, eventually, more workers earning and spending money. “But that’s just not going to happen,” he says.

A surge in productivity would also boost growth, but productivity growth was actually negative last year. 

The last time the United States economy grew at a clip of 7 percent or more was 1983, after emerging from two severe back-to-back recessions.  

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.