The Impact of Stagnant Growth

Stagnant economic growth can lead to serious social and political consequences, including a rise in populism and a general distrust in the economic system. Historical context demonstrates that periods of significant growth, such as that from 1992 to 2007, resulted in improved living standards for many, whereas the current trends show a stark decrease in growth rates. The disparity between overall GDP and GDP per head indicates that not all citizens have benefited equally, which has exacerbated feelings of economic disenfranchisement. These factors suggest an imminent risk of social unrest if measures to boost growth are not effectively implemented.