Economic stagnation, often called simply stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth). By some definitions, "slow" means that it is significantly slower than a potential growth as estimated by experts in macroeconomics. By others, the growth less than 2-3% per year is a sign of stagnation. Accumulated GDP growth for various countries. ... Macroeconomics is the economics sub-field of study that considers aggregate behavior, and the study of the sum of individual economic decisions. ...
The term bears negative connotations, but not always a slowdown of economical growth is a problem. For example, the potential growth may be slowed down, e.g., by catastrophic or demographical reasons.
The notion of stagnation originates in the times of the Great Depression. The Great Depression was a worldwide economic downturn, starting in 1929 and lasting through most of the 1930s. ...
It was the longest period of capitalist stagnation during the imperialist epoch.
The economic crisis ushered in by the Wall Street crash was "solved" by state capitalist intervention which alleviated some of the worst consequences wrought by the havoc of the economic collapse.
Since 1825 when the first worldwide economic crisis developed, learned men in high places, in government, in industry, and in the universities, had tried not only to fathom the meaning of the so-called disturbances in the economic system, but had tried by a variety of mediums to change their course or eliminate them.
Deficit reduction permitted the Federal Reserve Board to push interest rates down to record lows, economic growth accelerated, tax receipts rose, Clinton and Newt Gingrich performed their cobra and mongoose act, and, by the end of the decade, the unified federal budget was balanced, with $5.5 trillion in surpluses projected for the decade ahead.
Economicstagnation breeds inwardness, defensiveness and even paranoia, he says, for "where most citizens sense that they are not getting ahead, societyÉ becomes rigid and democracy weakens." Hence government's basic responsibility is to further economic growth.
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