I’ve been arguing that 1.2% RGDP and 3.0% NGDP growth is the new normal. The RGDP growth is of course an arbitrary figure, reflecting the whims of statisticians at the BEA. But the NGDP slowdown is real (pardon the pun.) So let’s not have any tiresome debates over angels dancing on a pin, or whether there is unmeasured digital “output.”
It seems like the experts are beginning to figure this out: