Direct investment, personal income and tax revenue are rising in the United States — staving off a double-dip recession — but don’t make plans to retire just yet. Thunderbird School of Global Management Professor F. John Mathis, Ph.D., says economic growth of 1.5 percent to 2.5 percent will fall “way below the rate we need to grow to absorb the unemployed in any significant way.” He blames the slow recovery on a weak banking system hampered by persistent mortgage delinquency. “This part of the banking system is not functioning,” says Mathis, director of Thunderbird’s Global Financial Services Office. “That’s a long-term problem.” He says slow growth in the United States and other mature markets will drag down the emerging and developing world. “Financial globalization has linked us extremely tightly together,” Mathis says. “We’re all being drawn into the same close performance levels.” He spoke Sept. 14, 2011, during an alumni webinar that included a live question-and-answer session. Watch the full webinar on Thunderbird’s YouTube channel.
|Why You Can’t Retire: Thunderbird School of Global Management Professor F. John Mathis, Ph.D., talks Sept. 14, 2011, about slow growth in the United States and beyond. View the video on YouTube (1:03:16).|