The current expansion has gone on for 102 months. Only the expansions from March 1991 to March 2001 (120 months) and from February 1961 to December 1969 (106 months) are longer. Unfortunately, growth during this expansion has been slow and the gains have largely gone to a very few. And there are signs of economic trouble ahead.
The figure below shows that the rate of growth of GDP per capita during this expansion has been significantly below those of past expansions.
Weak business investment, as illustrated below, is one reason for the disappointing economic performance.
Corporations have certainly made money during this expansion. It is just that they have been more interested in using it to pay dividends and buyback their stock to push up share prices rather than spend it on new plant and equipment. As Nomi Prins explains, and as illustrated in the next figure, “companies…
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