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A comment on U.S. economy shrank at a 1.4% annual rate in the first quarter. Parent comment

Re:U.S. economy shrank at a 1.4% annual rate in the first qu... by snake_doc on Thursday April 28, 2022 @01:53PM (#31195778)
GDP ~= Capital * Productivity * Labor Population

You’re missing an critical component from the Solow model.

https://economics.mit.edu/files/7181

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Re:U.S. economy shrank at a 1.4% annual rate in the first qu... by mensetmanusman on Thursday April 28, 2022 @03:24PM (#31197045)
I wrapped capital up in productivity since machines/software/tools are a facet of how the labor population manifests productive use of time (and to simplify the discussion:) )
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Re:U.S. economy shrank at a 1.4% annual rate in the first qu... by snake_doc on Thursday April 28, 2022 @04:29PM (#31197818)
The interaction between capital and savings from an aging population is critical, as it delays the impact of population decline on output growth.

Japan is an excellent case of when labor population has declined/stagnated since 1990s.

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