The Implications of Demographics on Economic Growth

Capital costs are going up and they will continue to go up for the next decade, independent of what happens with the economic cycle or the Fed. In fact, we shouldn't expect capital costs to start coming down appreciably until the millennials are in their fifties. That's not until the mid 2030s. Everything that we have to deal with now, starting now, we have to do so with less capital. And that is going to radically slow the rate of economic growth.