[34], Economists have asked whether the low economic growth rate in the developed world leading up to and following the subprime mortgage crisis of 2007–2008 was due to secular stagnation. Under some definitions, "slow" means significantly slower than potential growth as estimated by macroeconomists, even though the growth rate may be nominally higher than in other countries not experiencing economic stagnation. A building boom commenced in the years following the war. [3], Paul Krugman, writing in 2014, clarified that it refers to "the claim that underlying changes in the economy, such as slowing growth in the working-age population, have made episodes like the past five years in Europe and the United States, and the last 20 years in Japan, likely to happen often. Hundreds of thousands of immigrants came to the United States every year and found jobs digging canals and building railroads. Faltering Innovation Confronts the Six Headwinds-August 2012, "The Natural Rate of Interest and Secular Stagnation", "Technological Transformations and Long Waves", https://en.wikipedia.org/w/index.php?title=Economic_stagnation&oldid=991502378, Creative Commons Attribution-ShareAlike License. Economic slowdown Definition: Economic means concerned with the organization of the money, industry, and trade of a... | Bedeutung, Aussprache, Übersetzungen und Beispiele Das Substantiv (Hauptwort, Namenwort) dient zur Benennung von Menschen, Tieren, Sachen u. Ä. "It is likely the economic slowdown will stabilise in the future, but the chance of a double dip is not likely," the central bank said. For example, if GDP goes from 5% growth to 3% growth, an economy is experiencing a slowdown. Because there was little mechanization, almost all work was done by hand or with horses, mules and oxen until the last two decades of the 19th century. The economy benefits when most of the gain goes toward low-income families. Konjunkturabschwächung { noun feminine } This is mainly caused by the global economic slowdown but also by the current political security crisis. Definition (britisch) economic, slowdown: Definition (amerikanisch) economic, slowdown: Thesaurus, Synonyme, Antonyme economic, slowdown: Etymology economic, slowdown: wirtschaftliche Abkühlung. The U.S. government also built ammonia plants, aluminum smelters, aviation fuel refineries and aircraft engine factories during the war. Amaze your friends with your new-found knowledge! Railroad locomotives switched from steam to diesel power, with a large increase in fuel efficiency. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters. [1] Warnings similar to secular stagnation theory have been issued after all deep recessions, but they all turned out to be wrong because they underestimated the potential of existing technologies. n. The act or process of slowing down; a slackening of pace: a production slowdown. Steel consumption peaked in 1973, both on an absolute and per-capita basis, and never returned to previous levels. Twitter LinkedIn Email. In a 1974 New York Times article, Julius Shiskin suggested several rules of thumb to identify a recession, which included two successive quarterly declines in gross domestic product (GDP), a measure of the nation's output. A situation in which GDP growth slows but does not decline. a reduction in speed, activity, or the rate that things are produced: a worldwide economic slowdown. Definition wirtschaftlich, Abkühlung: Das Substantiv Englische Grammatik. Create an account and sign in to access this FREE content, The American Nation: A History of the United States to 1877. needs to be approached in a realistic manner. [28], Japan has been suffering economic or secular stagnation for most of the period since the early 1990s. Turning Point by Robert Ayres and The Evolution of Progress by C. Owen Paepke were earlier books that predicted the stagnation. There were numerous strikes and other labor movements for a ten-hour day. Magdoff was a former economic advisor to Vice President Henry A. Wallace in Roosevelt’s New Deal administration, while Sweezy was a former Harvard economics professor. Paul Krugman wrote in September 2013: "[T]here is a case for believing that the problem of maintaining adequate aggregate demand is going to be very persistent – that we may face something like the 'secular stagnation' many economists feared after World War II." The impact of the pandemic on the economy is projected to be severe due to the collapse in tourism activity and the indirect effects of the necessary containment and mitigation measures. Assessment of the monetary policy measures 4. As new territories were opened and federal land sales conducted, land had to be cleared and new homesteads established. Slowdown definition: A slowdown is a reduction in speed or activity. [35], Larry Summers presented his view during November 2013 that secular (long-term) stagnation may be a reason that U.S. growth is insufficient to reach full employment: "Suppose then that the short term real interest rate that was consistent with full employment [i.e., the "natural rate"] had fallen to negative two or negative three percent. The workweek during most of the 19th century was over 60 hours, being higher in the first half of the century, with twelve-hour work days common. economic slowdown definition in the English Cobuild dictionary for learners, economic slowdown meaning explained, see also 'economics',economical',economically',economist', English vocabulary A recession means a fall in the level of real national output i.e. [28], A third is that there is a "persistent and disturbing reluctance of businesses to invest and consumers to spend", perhaps in part because so much of the recent gains have gone to the people at the top, and they tend to save more of their money than people—ordinary working people who can't afford to do that. This resulted in constant spending for defense programs, creating what President Eisenhower called the military-industrial complex. In the 1980s and 1990s Magdoff and Sweezy argued that a financial explosion of long duration was lifting the economy, but this would eventually compound the contradictions of the system, producing ever bigger speculative bubbles, and leading eventually to a resumption of overt stagnation. Economic stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment. Labor productivity rose 26.5% and GDP nearly doubled.[9]. The general form of the argument has been the subject of papers by Robert J. Purchase of structures and equipment increased 500% from the previous decade. slowdown of economic activity and stands in direct contrast to economic growth Capital was so scarce before the Civil War that private investors supplied only a fraction of the money to build railroads, despite the large economic advantage railroads offered. The depression years were the period of the highest total factor productivity growth in the United States, primarily to the building of roads and bridges, abandonment of unneeded railroad track and reduction in railroad employment, expansion of electric utilities and improvements wholesale and retail distribution. a period when there is less business activity than usual in a company, the economy, etc. Lernen Sie die Übersetzung für 'economic slowdown' in LEOs Englisch ⇔ Deutsch Wörterbuch. [38], The German Institute for Economic Research sees a connection between secular stagnation and the regime of low interest rates (Zero interest-rate policy, negative interest rates). ", "Economic History of Tractors in the United States", "Technological Change and Economic Growth the Interwar Years and the 1990s", "Total Debt to GDP Trumps Everything Else", "U.S. Productivity Performance in Perspective, Business Economics, October 1, 1991", The Recent Rise and Fall of Rapid Productivity Growth, Larry Summers-U.S. Economic Prospects-Keynote Address at the NABE Conference 2014, Hans-Werner Sin, Forget Inflation, February 26, 2009, "IMF Fourteenth Annual Research Conference in Honor of Stanley Fischer", "Is The Economy Suffering From Secular Stagnation? The end of armaments production freed up hundreds of thousands of machine tools, which were made available for other industries. At least since 1950, the United States has been stimulated by increases in educational attainment, increases in research intensity, and the increased openness and development of the world economy. Construction of structures, residential, commercial and industrial, fell off dramatically during the depression, but housing was well on its way to recovering by the late 1930s.[10]. Even with artificial stimulus to demand you wouldn't see any excess demand. [28], One theory is that the boost in growth by the internet and technological advancement in computers of the new economy does not measure up to the boost caused by the great inventions of the past. The economic slowdown also means businesses need extra cash flow. Under some definitions, "slow" means significantly slower than potential growth as estimated by macroeconomists, even though the growth rate may be nominally higher than in other countries not experiencing economic stagnation. Our new online dictionaries for schools provide a safe and appropriate environment for children. The period was also characterized by high interest rates, which is not entirely consistent with secular stagnation. | Meaning, pronunciation, translations and examples economic slowdown . Economic slowdown synonyms, Economic slowdown pronunciation, Economic slowdown translation, English dictionary definition of Economic slowdown. A recent book titled The Great Stagnation: How America Ate All the Low-Hanging Fruit of Modern History, Got Sick and Will (Eventually) Feel better by Tyler Cowen is one of the latest of several stagnation books written in recent decades. [32][33] Economists, such as Paul Krugman, attribute the stagnation to a liquidity trap (a situation in which monetary policy is unable to lower nominal interest rates because these are close to zero) exacerbated by demographics factors. Share. Informally, a national recession is a period of declining economic output. Define slowdown. Viele übersetzte Beispielsätze mit "economic slowdown" – Deutsch-Englisch Wörterbuch und Suchmaschine für Millionen von Deutsch-Übersetzungen. ", "The End of Economic Growth? She blamed the slowdown on a range of issues, but clubbing them under one common theme— fractures. Many trends that began before the war continued: The workweek never returned to the 48 hours or more that was typical before the Great Depression.[14][15]. [39], "Economic immobility" redirects here. Economic Slowdown synonyms. An economic slowdown occurs when the rate of growth in the GDP of an economy slows from the previous period. [28], And a fourth is that advanced economies are just simply paying the price for years of inadequate investment in infrastructure and education, the basic ingredients of growth. Better roads and increased investment in the distribution system of trucks, warehouses and, Mechanization of agriculture increased dramatically, especially the use of, This page was last edited on 30 November 2020, at 11:52. Looking at economic activity in the period April to June 2019, it is safe to say that the GDP growth would have slowed down further during the period. Gordon. C. Paepke and Tyler Cowen. Slowdown definition is - a slowing down. Top synonyms for economic slowdown (other words for economic slowdown) are economic downturn, economic decline and economic contraction. [8], The decade of the 1880s saw great growth in railroads and the steel and machinery industries. U.S. birth rates began to recover by the time of World War II, and turned into the baby boom of the postwar decades. Tires had been rationed due to shortages of natural rubber; however, the U.S. government built synthetic rubber plants. An economic slowdown is a natural part of the business cycle. The period following the 1973 oil crisis was characterized by stagflation, the combination of low economic and productivity growth and high inflation. The trade disputes are taking a toll and global trade growth has come to a near standstill. More people purchased washing machines, dryers. For the concept in financial economics, see, Historical periods of stagnation in the United States, End of stagnation in the U.S. after the Great Depression, Stagnation and the financial explosion: the 1980s, "The secular stagnation hypothesis: a review of the debate and some insights. President Donald Trump has lashed out at the Federal Reserve several times. [29] It has also been written about by Owen. [26], However, The Economist criticizes secular stagnation as "a baggy concept, arguably too capacious for its own good". It’s no surprise that quite a few of the words on Collins Word of the Year 2020 shortlist have one big thing in common: the pandemic. High-yielding crops and chemical fertilizers dramatically increased crop yields and greatly lowered the cost of food, giving consumers more discretionary income. Euro area: economic slowdown, easing of monetary policy 1. The use of electricity grew steadily as prices continued to fall, although at a slower rate than in the early decades. Structural factors may include: The rates of savings and investment in the Indian economy have declined, as also exports and total credit. Labor did suffer temporary setbacks, such as when railroads cut wages during the Long Depression of the mid-1870s; however, this resulted in strikes throughout the nation. The war created pent up demand for many items as factories that once produced automobiles and other machinery converted to production of tanks, guns, military vehicles and supplies. For example, if GDP goes from 5% growth to 3% growth, an economy is experiencing a slowdown. ", "Does the New Economy Measure Up to the Great Inventions of the Past? ID 6284 DOI 10.3386/w6284 Issue Date November 1997. Private accumulation had a strong tendency to weak growth and high levels of excess capacity and unemployment/underemployment, which could, however, be countered in part by such exogenous factors as state spending (military and civilian), epoch-making technological innovations (for example, the automobile in its expansionary period), and the growth of finance. An example of such a great invention is the assembly line production method of Fordism. The U.S. economy experienced structural changes following the stagflation. The economy doesn't benefit as much when increases go toward high-income earners. Garraty, John Arthur The American Nation: A History of the United States to 1877 (1995) [5], The U.S. economy of the early 19th century was primarily agricultural and suffered from labor shortages.[7]. Carl Benedikt Frey, for example, has suggested that digital technologies are much less capital-absorbing, creating only little new investment demand relative to other revolutionary technologies. And best of all it's ad free, so sign up now and start using at home or in the classroom. “The global economy is now in a synchronized slowdown,” Georgieva said in her speech, adding that the deceleration will cause global growth to slide to its lowest since the start of the decade. Secular stagnation refers to "a condition of negligible or no economic growth in a market-based economy". See more. A slowdown occurs when the rate of growth decelerates – but national output is still rising ; If the economy grows without falling into recession, this is called a soft-landing; Recession. These include demography, education, inequality, globalization, energy/environment, and the overhang of consumer and government debt. Copy to clipboard; Details / edit; GlosbeMT_RnD. [5], According to Alan Sweezy "the idea of secular stagnation runs through much of Keynes General Theory". The term can refer to the economy as a whole or a component of it. Times, Sunday Times (2008) High unemployment and the economic slowdown gradually reduced consumer demand for goods and services. The memory of war created a need for preparedness in the United States. That is, we will often find ourselves facing persistent shortfalls of demand, which can’t be overcome even with near-zero interest rates. Over the last several months, when factories, offices, restaurants and other places of social gathering have been (intermittently) shut, people’s creativity has taken all sorts of unexpected directions. Antonyms for Economic slowdown. Outlook: No prospect of a speedy recovery 3. Although productivity never returned to peak levels, it did enjoy a revival with the growth of the computer and communications industries in the 1980s and 1990s. [16] This enabled a recovery in GDP growth rates; however, debt in the period following 1982 grew at a much faster rate than GDP.[17][18]. The COVID-19 pandemic hit when the economy was already in recession due to drought and a slowdown in tourism in the second half of 2019. In the United States, it is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales". They must spend a more significant share of each dollar on necessities until they reach a living wage. On the other hand, a slowdown refers to a situation whereby economic growth occurs but a reduced or slow rate. All the latest wordy news, linguistic insights, offers and competitions every month. A provocative 'exercise in subtraction' suggests that future growth in consumption per capita for the bottom 99 percent of the income distribution could fall below 0.5 percent per year for an extended period of decades". Synonyms for Economic slowdown in Free Thesaurus. Charles I. Jones. Stronger economic growth resumed and inflation declined during the 1980s. n. The act or process of slowing down; a slackening of pace: a production slowdown. Suburbs began a rapid expansion and automobile ownership increased.[10]. Considerable easing of monetary policy 3. Mit Flexionstabellen der verschiedenen Fälle und Zeiten Aussprache und … The tight labor market was a factor in productivity gains allowing workers to maintain or increase their nominal wages during the secular deflation that caused real wages to rise in the late 19th century. The slowdown in the Indian economy is partly cyclical and partly structural. US (UK go-slow) an occasion when employees work more slowly and with less effort than usual to try to persuade an employer to agree to higher pay or better working conditions. [30], Secular stagnation has also been linked to the rise of the digital economy. Economic stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment. The warm wet weather is working wonders on the, Mobile signals enabled police to place them at the. A sluggish economy is a state of an economy when growth is slow, flat or declining. [4] In this context, the term secular is used in contrast to cyclical or short-term, and suggests a change of fundamental dynamics which would play out only in its own time. [19] The energy intensity of the United States and many other developed economies also began to decline after 1973. Economic Slowdown A situation in which GDP growth slows but does not decline. [10] This helped the United States, which escaped the devastation of World War II, to quickly convert back to peacetime production. This Friday, 13 November is World Kindness Day, an awareness day launched in 1998 with the aim of encouraging benevolent acts by individuals, organizations, and countries. German economy: in a downturn 1. Such changes suggest, contrary to the … : slowdown in sth Labor Department statistics released last Friday showed an unexpected slowdown in hiring. Most importantly, cheap food essentially eliminated malnutrition in countries like the United States and much of Europe. Infrastructures: The highway system continued to expand. Two cyclical factors are Shadow banking stress (NBFC crisis) and weaker global demand. Krugman wrote that fiscal policy stimulus and higher inflation (to achieve a negative real rate of interest necessary to achieve full employment) may be potential solutions. While Trump sees the economy as doing well despite higher rates, we’re seeing a US economic slowdown. "[27] At its root is "the problem of building consumer demand at a time when people are less motivated to spend". Economic situation 2. slowdown synonyms, slowdown pronunciation, slowdown translation, English dictionary definition of slowdown. Even with a resumption in normal credit conditions you would have a lot of difficulty getting back to full employment. Health care expenditures rose to over 17% of the economy. They are more likely to save or invest additions to income instead of spending. [31], Another is that the damage done by the Great Recession was so long-lasting and permanent, so many workers will never get jobs again, that we really can't recover. Something that changed everyone’s lives so profoundly – leaving no country or continent untouched – was bound to have a significant impact on our language. Productivity growth began to slow down sharply in developed countries after 1973, but there was a revival in the 1990s which still left productivity growth below the peak decades earlier in the 20th century. How to use slowdown in a sentence. [1][2], Warnings similar to secular stagnation theory have been issued after all deep recessions, but they usually turned out to be wrong because they underestimated the potential of existing technologies.[3]. traduction slowdown dans le dictionnaire Anglais - Francais de Reverso, voir aussi 'slow down',showdown',slow',slow motion', conjugaison, expressions idiomatiques Most analysts do not consider a slowdown to be a recession, but unemployment may rise and productivity may decline. Subsiding labour market momentum 4. [10] After the war, commercial aviation, plastics and synthetic rubber would become major industries and synthetic ammonia was used for fertilizer. Economic dichotomy continues 2. China's economy has been slowing for the better part of the past decade, but a recent run of poor data has prompted fresh concerns. Outlook III. How the Digital Economy Could Lead to Secular Stagnation", "Japan's Financial Crisis and Economic Stagnation", Paul Krugman-Bubbles, Regulation and Secular Stagnation-September 25, 2013, "Marco Nappollini- Pieria.com-Secular Stagnation and Post Scarcity-November 19, 2013", Paul Krugman-Conscience of a Liberal Blog-Secular Stagnation, Coalmines, Bubbles, and Larry Summers-November 16, 2013, Robert J. Gordon-Is U.S. Economic Growth Over? The term "secular stagnation" was originally coined by Alvin Hansen in 1938 to "describe what he feared was the fate of the American economy following the Great Depression of the early 1930s: a check to economic progress as investment opportunities were stunted by the closing of the frontier and the collapse of immigration". Download our English Dictionary apps - available for both iOS and Android. The economic slowdown has affected both public and privates sectors… The Upcoming Slowdown in U.S. Economic Growth. Teleworking is working from home using equipment such as telephones, fax machines, and modems to contact people. Slowdown definition, a slowing down or delay in progress, action, etc. a period when growth is negative, leading to a contraction in employment, incomes and profits. But the economic slowdown will level off and is in fact beneficial for the restructuring of the country's economy and ensuring sustainable growth, it said, adding: "China's economic fundamentals are still very good." A prescient analysis of stagnation and what is now called financialization was provided in the 1980s by Harry Magdoff and Paul Sweezy, coeditors of the independent socialist journal Monthly Review. What is making investors nervous, and … In their 1987 book, Stagnation and the Financial Explosion, they argued, based on Keynes, Hansen, Michał Kalecki, and Marx, and marshaling extensive empirical data, that, contrary to the usual way of thinking, stagnation or slow growth was the norm for mature, monopolistic (or oligopolistic) economies, while rapid growth was the exception.[23]. Definition of economic slowdown: nouna general reduction in a country's economic activity Slowdown. We have almost 200 lists of words from topics as varied as types of butterflies, jackets, currencies, vegetables and knots! Secular stagnation was dusted off by Hans-Werner Sinn in a 2009 article [25] dismissing the threat of inflation, and became popular again when Larry Summers invoked the term and concept during a 2013 speech at the IMF. Alan Sweezy described the difference: "But, whereas business-cycle theory treats depression as a temporary, though recurring, phenomenon, the theory of secular stagnation brings out the possibility that depression may become the normal condition of the economy." a slowdown in production. [16][20][21] Productivity growth in the U.S. slowed again since the mid-2000s.[22]. translation and definition "economic slowdown", English-German Dictionary online. "[36][37], Robert J. Gordon wrote in August 2012: "Even if innovation were to continue into the future at the rate of the two decades before 2007, the U.S. faces six headwinds that are in the process of dragging long-term growth to half or less of the 1.9 percent annual rate experienced between 1860 and 2007. Get the latest news and gain access to exclusive updates and offers. They were needed in the rapidly growing aircraft manufacturing industry.[11].