Here’s how to solve the productivity paradox | Financial Times
A culture of government bailouts and constant stimulus is a barrier to technological innovation and dynamism
✒ The “easy money” since 1970s faded the cleansing effect of defaults and downturns, and thus entrepreneurial dynamism. New business creation plummeted, leaving behind a smaller group of really big companies and a bunch of zombies that survive on cheap debt.
The return of inflation (possibly ending the era of easy money) may spark a new productivity wave. But the author argues that easy money is only one aspect of big government, with a governing culture of bailouts, market rescues and constant stimulus. To revive productivity, the government needs to rethink its role in the economy.