Why Low Economic Growth Is So Dangerous: Dambisa Moyo
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- Опубликовано: 8 июл 2024
- Long term risk around economic growth in the U.S. will limit job opportunities and access to public goods, says Dambisa Moyo, Baroness of the House of Lords. In this episode of "The Bottom Line," Moyo discusses the risks associated with low economic growth, its lasting effects, why productivity is in decline and the impact of the Ukraine and Russia war.
"I'm worried in particular because both developed and developing economies are struggling to achieve that 3% per year growth rate, which is required in order to double per capita incomes in a generation. So I think that to me would be the key issue that we need to focus on," the "How Boards Work" author explained.
That 3% growth in the economy is crucial to improving livelihood.
"The whole hope is that we're continuing to improve people's livelihoods and people are able to access opportunities, not just in terms of public goods like education and health care and quality infrastructure, but also being able to improve their livelihoods by access to great opportunities. But we're not able to deliver on that. Public policy can't deliver on that and nor can corporations if the economy is not growing," the House of Lords Baroness said.
Related to the decline in GDP is evidence of lower productivity despite advancements in technology.
"Productivity numbers in the U.S. are in decline year over year and a rough estimate that I go by and a lot of evidence has shown that number is very important, about 60% of why one country grows and another one does not is because of productivity. … I think a lot of that right now, we hope, is chalked up to measurement, meaning that there are new sectors and new jobs and new opportunities and new information platforms that have emerged from technology. And unfortunately, our modeling of productivity and economy have actually not kept up," she said.
Moyo also stated that AI is fever pitched in every facet of her work as an investor, economist, board member and public policy advisor.
"At the micro level, it could have a meaningful impact not just on business models and how companies constitute themselves and think about allocating resources like capital and labor. But also, I think it could be incredibly transformative for the role of state if indeed we end up with a lot more people who are out of work," Moyo explained.
Watch the video above to see the full interview.
Correction: At 5:23, we incorrectly displayed the publish date of the article. It should be October 7, 2022.
At 1:36, the text on screen should read GDP.
Chapters:
0:00 Introduction
0:19 Growth
1:58 Productivity
3:31 Artificial intelligence
5:15 Inflation
6:39 Recession
7:39 Advice
Produced, Shot and Edited by: Mark Licea
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
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Why Low Economic Growth Is So Dangerous: Dambisa Moyo
What’s dangerous is expecting growth can be infinite
Not only dangerous but also a myth...a fiction. A fairy tale! Hence our current wars for resources plaguing the world! It is insane to believe obvious fiction and base the economy off those beliefs!
facts @RossSpeirs
The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Very true, you can be passively involved in the markts and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
This is striking! could you share info of your advisor, please? i'm in dire need of asset allocation and standing at a crossroads, whether to sell-off or keep holding my positions, my portfolio is retrogressing bad as of late
Can't reveal much, but the advisor guiding me is NICOLE DESIREE SIMON. She has gained a good deal of expertise over the past two decades in the financial system and her credentials speak for itself. She's well-grounded and known, shouldn't be a hassle finding her page.
Thanks a lot for sharing, I just looked her up and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
Just imagine if these companies respected, & cared about their employees welfare to give them a 3% raise every year rather than bloat the top 1% of the companies’ personnel with outrageous bonuses, & other perks such as private jets trips, & inside trader tips when given stocks as bonuses. 🤔
Sadly no, the average employee is seen as a necessary evil on a spreadsheet under the best of times, & an acceptable, expendable casualty under the worst climates. Their is no loyalty from above, yet they can’t imagine their employees being anything more than eagerly loyal cattle, who should just be thankful to receive mere table scraps as payment for their labor, as they are sent off to slaughter, by having their hours cut, added responsibilities, impossible expectations, & ultimately, accept their layoffs with grace.
The current “downsized” economy is the result of unadulterated greed, materialism, & dehumanization. It will only end when it becomes too bloated, & collapses in onto itself. Then, people will die, & as a result will rise up in violence, & revolution. We are already seeing such behaviors in big cities from uncontrolled shoplifting to looting, & mass acts of violence, as a result of anger, hopelessness, & disenfranchisement resulting from overwork, underpayment, homelessness, & starvation in our own streets.
To the elite, I advise caution, & self reflection. For when this powder keg finally explodes, you are going to be the primary targets of the citizenry’s ire. Despite what you are accustomed to believing, money, is not bullet proof. Every action, has it consequence. Tread wisely, with compassion, mindfulness, & humility.
The first rule of Business is "maximize profits and reduce costs". If AI enables a corporation to fire half its workforce then that's exactly what the corporation will do, because that provides benefit to the shareholders. This completely ignores the fact that an AI doesn't buy cars, or a house, or school supplies. We have a consumer based economy, however the unemployed do very little consuming. If one corporation does the "AI for employees" swap, our economy will continue moving forward, but if every corporation participates in this activity, it will be a "tragedy of the commons".
Focusing on growth should not be the end all be all for an economy. Macroeconomics is truly a joke.
Spot on, why is it that if a company isn’t growing, it’s failing? How about it does enough to serve its customers and the community, not shareholder profits
@@Northwest360 Because their competitors are growing
Lame6810. U r smart .thank compare to other idiots
Despite the prevailing economic turmoil, there is no denying that the current circumstances present an opportune moment for investment.
Is it really the best time to invest? It's quite ironic because in the past four months, I've incurred a significant loss of over $47,900 in the stock market. This is the largest loss I've experienced since I started venturing into stock investments.
It's true that opinions can vary, and it's possible that you could be right or wrong. I encountered a similar problem in the past, but my situation has changed significantly since I had the good fortune of connecting with *STEPHANIE KOPP MEEKS* . As a result, I recently added $240,000 to my portfolio.
Is that so? It's reassuring to hear that people are profiting from the stock market. It's refreshing when someone openly acknowledges seeking assistance from professionals. As for reaching *STEPHANIE KOPP MEEKS* , I'm afraid I don't have access to her contact information.
To gather comprehensive information about her, simply perform a web search using her name, and you will find everything you need to know about her.
Thank you for the information. I managed to find her website, and I must say, it is truly impressive.
The unsustainable economic system of infinite growth struggles when there's no infinite growth.
Should modify that to "... struggles when there is not infinite resources.". I think that was actually what you meant...no?
@@DarkPesco Desire for infinite growth in a finite world, yes. Sorry for any confusion, I am not a native English speaker.
yup @ImpreccablePony
Are you sure that economic growth makes the lives of people better and gives them more opportunities? In the past that only worked for people with a high income. Average people saw their lives just get more expensive.
The current economic system contributes to instability, inflation, and poverty. A new Creative Society economic model is required, one that can guarantee everyone's stability, security, and a high standard of living. But unfortunately, whenever the leaders we depend on appear on TV to tell us not to panic that everything is under control, that is actually the time to fear the most! Saddening...
@TracyFerguson-mj9wtI've been down a ton, I'm only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?
@TracyFerguson-mj9wtThanks for this great recommendation, I really appreciate 🙏
Low economic growth is bad for the capitalists bottom line but good for the environment.
If you're in a capitalist economy, you're a capitalist. Therefore, it's bad for your bottom line and therefore your quality of life.
Accurate. Degrowth is a better solution that the status quo
@@Northwest360 Extremely wrong. Degrowth is what happened to Detroit and what Japanese are working 100 hours a week to fight off.
@@dansands8140 What happened to detroit was far worse than simple degrowth. They're not comparable. Japanese are working to increase the companies bottom line, because capitalist will fire people who don't. Don't confuse what you have to do to survive to what you want to do.
@@dansands8140Detroit problem was divestment by corporations in search for cheap Labor and growth for their bottom line .
and an economic crisis caused again by corporate greed
You dont know what you are talking about
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
At present, my main concern is finding ways to boost revenue while facing periods of quantitative easing, as I cannot afford to watch my savings diminish.
true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@laszlolee How can I contact your Asset-coach as my portfolio is dwindling?
@@EmilyMoore-n7n I'm been guided by "Susan Bauer Normansell," who is widely recognized for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.
@@laszlolee I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.
Slow productivity growth could be caused by high housing prices making people live in areas with fewer job opportunities and settle for jobs they are overskilled for.
I dont believe people are that overskilled. I believe theres so many people overskilled in low paying jobs without visibility to big corporations and hiring managers. Im in France, and I feel here people are mainly hired on looks or luck, no overral skill atleast in the tech world.
Deflation is good for the working class and middle class, but it's bad for Ray Dalio and his asset portfolio. Infinite growth on a finite planet is neither possible nor desirable. The current "we need growth!" paradigm will result in natural resource depletion/exhaustion, lethally toxic levels of pollution, and ultimately, human extinction.
While you're correct that we've been programmed to believe inflation is good in order to benefit major asset holders, quasi-infinite growth is both possible and highly desirable and the engine for deflation. The same amount of money chasing much more goods is how prices decrease, i.e deflate. Growth is only limited by energy, and there is a 40,000 exawatt fusion reactor in the sky ever day.
Deflation is only good for the middle and working class at the beginning. Decreased spending results in lower revenue and profits for corporations, which employ a large majority of people. These decreases lead to fewer jobs being open and some existing jobs getting cut. Unemployment rate rises and those that enjoyed lower prices intially, find themselves out of income to spend. That leads to lower quality of life and diminished motivation for private individuals and enterprises to create and innovate.
You cannot have infinite growth on a finite world with finite resources.
Absurdity of main stream media amazes me
More people need to spend more money that they don't have to buy the goods and services that are more expensive in order to keep this thing going. /s
Dambisa Moyo is working for a company that is currently making billions in profits owing to inflated cost of fuel
America is talking about how low growth is a bad thing
While Europe is talking about degrowth
Degrowth? I heard there's a better word for it. Was just there on the tip of my tongue, give me a minute.
@@ImpreccablePony when you use more resources than the Earth can replenish, the only option is degrowth whether you like it or not.
If everyone on Earth lived like Americans, then we would need seven earths worth of resources.
We cannot keep moving in this direction the same way a teenage with a credit card working at McDonald's cannot afford a Lamborghini.
@@matthewboyd8689I totally agree. I just think degrowth is an ugly word.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ ETF you focus on.
very true, I started investing before the pandemic and that same year I pulled a profit of about $600k with no prior investing experience, basically all I was doing was seeking guidance to make a from a financial-advisorr, you can be passively involved with the aid of a professional.
wow that's stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
@@Carol-walker Mayra Femia-Hetrick
That's my licensed Financial advisor you can easily look her up, Thank me later!
Thanks, I merely looked her up on Google and was highly impressed by her credentials; I got in touch with her because I need all the help I can get. I just set up a phone call.
Do a video on Degrowth instead. Not everything needs to cater to shareholders
That would be a video Great Depression, fall of Roman Empire, Germany before WWII.
It is time to talk about degrowth and redistribution, rather than infinite growth, considering the current unsustainable use of resources, inequality, etc.
Good example: People were laid off and couldn’t afford a car. Business got government contract in my city and hired hundreds of people. The parking lot was full of brand new cars. More work means more stuff made means more taxes to upgrade the city, more jobs, better life for everyone.
😑
Better corporate provided Healthcare?!!! There is a 2007 senate study that shows how GM produces a car at one third less cost in Canada because employee health costs are not a corporate expense. How about removing health costs away from private business and putting it on the tax base where everyone can benefit and the private insurance industry overhead is no longer necessary? This is what everyone else does around the world. Arguing for corporate growth as a benefit to maintaining health care systems is disgusting...
Why are we still looking at GDP and people's contribution to it as a decent measure of ANYTHING?
Oh, no. The ultra wealthy aren’t getting more wealthy. Thoughts a and prayers.
Why can't companies just turn a profit and call it a day? Why does growth need to be infinite? Everything has a ceiling. The flaws in capitalism have been really starting to show these last few decades.
Question not answered
People can't continue spending money they don't have to satiate shareholders.
No one talks about possible negative sides of economic growth. Here in Florida is a prime example. People moving here like crazy; traffic, noise and overall lower quality of life are a byproduct. Life is a paradox
If you have a functioning society and families, low growth is fine
What is this beautiful guest who is strong in her expressions and the sentences she says
The other problem is that most western countries rely on a capitalist economy for economic growth people spending money is the engine. Since real wage growth has been stagnant for a little over 40 years now it's harder to expect an increasingly smaller pool of high net worth individuals to keep propping up the economy who keep taking an ever larger share of the pie. The economy is less resilient and elastic if people don't have the means to keep the economy going as a whole.
If I can't afford a house, then I don't care about the economy. I want it all to come crashing down.
Crashing down means no food or water for you
@@ElectricVehiclesAreGoodF-ti7xd no, essential workers will still have jobs. It's the useless parasites that need to go away, like landlords, real estate investors and corporations that buy up multiple houses.
Then tell companies ceos to give back some money then and stop treating employees like old dirty sneakers!
Economist Dambisa Moyo has warned that the biggest threat to companies' bottom lines is a lack of growth in the medium to long term. Both developed and developing economies are struggling to achieve a 3% per year growth rate, which is required to double per capita incomes in a generation. Moyo said that access to opportunities, including education, healthcare, quality infrastructure, and job opportunities, will be limited if the economy does not grow. Corporations can play a key role in improving livelihoods over the long term by being a tax base, innovating, and delivering goods and services. Moyo said that productivity growth is also slowing in the US, which is a concern as around 60% of why one country grows and another does not is because of productivity. She said that AI is likely to have a meaningful impact on business models and how companies allocate resources like capital and labor. It could also result in more people being out of work, leading to a challenge for both the role of the state and corporations.
What a geniuses of love ❤️ u can see the best place for the Sancho
why? you need to know why now?
5:22 that article is so advanced, it hasn't even come out yet.
Start stacking sats before it’s too late.
Growth by no means mean incomes would rise. Wages haven't really increased for a generation in the US!
Just heard about this woman on Economics Explained 😊
We have been beyond the tipping point for growth and especially in terms of housing and medical services in the developed world we need to see a massive 50% decline in pricing if we are conservative from where we are today. She completely forget the demographic reason for the increase in capital costs which is the baby boomers have retired and pulled the money out of the stocks and into bonds. Contraction of the outrageous growth numbers of the world economy to bring it back into reasonable alignment is truly what is necessary with a massive reduction in the dependency of debt at the same time will strengthen the local economies. The global economy is screwed going forward as there is not a population to consume or a labor force to make the goods that are needed. Too many people moved to cities and had too few children for their to be global growth. Finally the US needs to manufacture a hell of a lot more consumer products in order to ensure there are products, not growth as China dropped the ball with BS politics that destroyed their economy.
Its time to SELL
The productivity is the most important
❤❤❤
One could be forgiven if they suspect that the questions asked here were written for the CNBC presenter to ask, so as to have a prepared and rehearsed answer given back in an effort to influence any viewer that may be watching this to support the generalised economic argument that for the ordinary viewer to have a prospect of living a prosperous life, the economy must grow in size. Subliminally, the message seems to be. Don't do anything that will stop economic growth like regulation, increasing taxes, or god forbid, getting corporations or the wealthy to contribute more, or to be, and act with a social responsibility. That is socialism and will drive down profits (from the current record price gouging profits already being made) and hence the share price and other asset prices. No,no, no, we can't have any of that. Let us do as we please.
Ima hooked on the phonics
Called parents and asked them mystery questions and they kiddos
Very smart woman
Governments that are in debt have to maintain their economy's growth rate in order to stay ahead of the interest on what they've borrowed. She doesn't say that directly, of course. This need for growth is what creates a situation where politicians, regardless of their party platform or pretty speeches, simply cannot address the climate crisis--it would be political suicide. So the environment suffers as we demand greater and greater levels of civilization: technology, transport, entertainment, etc.
A.i. should be used to make smart stoplights. That can detect oncoming cars, volume, speed. That can drastically reduce waiting time. While increasing optimal safety by active management of vehicles.
Instead of being used for fake a.i. influencers and sheer entertainment and consumption.
This woman didn’t answer a single question directly. She said what she came on here to say. Rehearsed.
What they should be doing during this turn down in trade is move more factories and redistribute them around the world so we don't have the same supply chain problems we had during Covid.
What ever happened to the law of diminishing returns?
Good luck with all this stuff women 👍 🙌 👏 ❤️ 💪 💜 👍 🙌 Ohno cocomo world 🌎 ocean 🌎 ocean
Taste of free money has soiled the young workers. Blue collar jobs and taking pride in working hard has been marginalized. You won't get productivity back until woke policies are questioned and schools are reformed.
Can tell we're heading towards some sort of collapse.
Umbrella yummy yummy mint chocolate 🍫 cupcakes
What she said about AI was disturbing. More collaboration between corporations and government, and then they show food handouts? Ah, no thanks. I have no interest in becoming dependent on the values of corporations in order to be fed. And there's a word for the merger of corporations and government. It's called Fascism.
Thy 🫏 plowing 🫏 thy shall reep thee thy shall reep thy shall thy shall soul's
Yes what is thy own world 🌎 ocean with the diamonds 🏝 🫏 the 🐁 💙 Crum
Everything is fine!Just make a big bicycle ride!
You can think about China. 20% are productive, 30% are children and elderly (maybe even more as share of elderly is growing). 50% are employed in the non-productive occupations just to keep them busy.
Nope. Creating a consumer based economy then starving the consumer doesn't make much sense. That's what we've done. You aren't going to increase productivity with technology, while eliminating jobs, and solve anything.
America was fine before we let everyone in starting in the mid 1960s . If you come here to farm, keep farming , your kids can’t be anything but farmers.
The capitalist economy has become a monster that needs more and more energy and resources to grow otherwise it will die
That's why planet going hell cause growth 😢
I want to english well
Meanwhile, Russia overtook Germany in the world GDP rankings and became the fifth largest economy in the world and the first in Europe.
The economist is very poor explaining what this MEANS to people. What they are TRYING to say, is that you know how everyone can have books? Movies? Music? Cheap foods? Clothing? Phones? Streaming services? Internet? Imagine all that is GONE. Poof!
Growing economy means people with no money get free swag. Shrinking economy means only people who are rich have anything.
Economic growth and improving people's living standards are two different things. Even with current economic situation the US government is still able to improve living conditions by putting money in the right place. Currently billions are going into projects with no benefits to common person such as buying weapons for UKraine to keep the war going
Have you fallen in love with Russia? Of one of the cruelest dictatorships?
@@vladdumitrica849 Here is the truth. Ukraine cannot defeat Russia. The war in Ukraine could have been avoided if the US did not carry out regime change in Ukraine in 2014. Also the war could have been avoided if Ukraine gave a commitment to Russia it will not join NATO. Money sent to Ukraine is just getting wasted.. The US wasted trillions in Afghanistan fighting the Taliban that are now in power ....The US army also wasted lives and time ...20 years fighting in vain
big stock buy out my way 20 milion in the bank
So long as the population is increasing at a steady pace - which it is, in the United States - healthy economic growth should proceed naturally without moronic potatoes calling themselves central bankers meddling with it at every turn. In places where the population is stagnant or shrinking, the situation becomes much more difficult.
You didn't understand economics nor the society
@@felixpope6073 Without elaboration, I'll assume you're a Malthusian who thinks Thanos was right.
Bit to honey 🍯
99 percent of thy whole world 🌎 global economy is thy brave new world s hand maids tale 🌎
I’m loving the anti-capitalist vibes in this comment section.
Lol economists
Hi I'm Ariful Islam leeton im software engineer and members of the international organization who and members of the Congress and co founders open Ai and members and members of the international telecommunications and investors public and private sector
Talking about the "3% growth rate" is not addressing the real problem. Your analysis is flawed.
How are you going to achieve a 3% growth rate in the coming (actually started 1.5 years ago.) depression/deflation worldwide?
China is leading the way, and Canada and UK are not far behind.
Opportunities? Wtf is she talking about we can't even get step one right housing, education and healthcare. The American dream is dead, you can look at our infrastructure as evidence of that.
It's never been about low income, it's always been about withholding wages from the workers.
📞 📲 my mom y
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**🇿🇲🇿🇲🇿🇲
this gal is disconnected from reality she only cares for profit of her companies not for livelihood of anyone
lol clueless economists
Cnbc 😃
Unfortunately u women's are the phonics of thy whole world thy prides