What does a future of low economic growth look like? The Congressional Budget Office (CBO) economic forecast estimates a real growth (adjusted for inflation) of less than 2% for the foreseeable future. We have discussed before how this pattern is likely to hold through the next generation and around the world as population growth slows and new opportunities will come only through technology improvements.
The implications are vast, if for no other reason than investing and saving for retirement are going to be very different concepts than we have come to expect. Everything changes – and a few things may even change for the better. It’s worth thinking through, and carefully.