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The US Labor Force Growth on a 10 Year Moving Average
The US labor force growth on a 10 year moving average basis used to grow almost at 20% in the 80s and then it still grew at 12-14% at the end of the 90s. The amount of new people entering the labor force these are people that are contributing actively to economic output rather than being retirees or inactive people that are not contributing. As this happened you naturally have less people able to actively contribute to long term growth so as a result potential real growth over the future is much less. That is reflected by the bond market that is accordingly priced Fed funds terminal rates to be lower and lower the cost of the US.