Post

Menna shuli wrote:

Part of that is inflation at play. You want to make sure you are looking at charts based on Real GDP, not just Nominal. Still growth is cumulative. An average of 2% per year growth sees a doubling effect in only 35 years, as per the mathematical rule of 70.

To explain, if you have a percentile annual growth rate for any given element of...anything, really...you can divide 70 by the number of the percentage and you get how long that thing will take to double in years. So at a growth rate of 1%, it's 70 years. 2%, 35 years. 7%, 10 years. And so on. This is why growth rates over 5% are seen as amazing, and anything nearing 10% (especially if it remains that way long term) is a RIDICULOUS amount of growth. Imagine if your income was rising at 10% a year: in only 7 years, you'd DOUBLE your real income from the starting point.

Consider where Japan was in 1945 compared to 1975, or where South Korea was 50 years ago compared to now.