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With gold and silver investments we can not only survive decades of a stagnant economy, we can prosper from them.

February 16, 2011 – With gold and silver investments we can not only survive decades of a stagnant economy, we can prosper from them.

Historically the growth of our labor force has contributed about half of the growth in GDP, or 1.7%, says Justin Lahart in a Wall Street Journal blog. The other half is a result of increased productivity. With vast numbers of baby boomers retiring and the growth of women in the workforce leveling off, however, expansion of the workforce will slow to 0.5% over the next 10 years. Without a major boost in productivity growth in the GDP will slow down to a sluggish 2.2%.

McKinsey Global Institute director James Manyika believes we can compensate for the loss of contribution by workforce growth by boosting productivity. “There is plenty of room for more efficiency in large sectors like health care, and even in places that have seen large productivity gains in the past several years, like wholesale trade, there are plenty of firms that have yet to embrace new technology and management practices.” But to see that happen would take a major attitude adjustment, both in industry and in Washington.

Industry looks to Washington for its cues, and right now all they see is stubborn focus on the quick fix. As a result, R & D investment is way down as are business expenditures for software and capital equipment. Some gains are being made in productivity, but sustained growth requires “making higher quality and more advanced products that improve people’s lives.” Instead, industry has been focusing on non-sustainable short-term gains in productivity through increased efficiency, the net effect of which has been to further decrease the workforce.

While our economy plods along, the value of gold and silver investments will continue to grow in step with the expanding global economy, enabling us to prosper through the worst of times.

Shannon King

Senior Staff Writer – GoldSilver.org

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