Per capita GDP growth began to rise again the same year.
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They found that, over the long haul, economies with slower GDP per capita growth produced better real returns on shares than faster-growing ones, and vice versa.
Yet expected real GDP per capita growth of 4% annually over the next five years in a country of 1.1 billion means a lot of customers to go around.
Ryan would put a cap on the per capita growth of the premium support equal to nominal GDP growth plus 0.5%.
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As I have mentioned before, in terms of per capita GDP, Britain actually saw more growth in living standards, on average between 1998 and 2010 than Germany, and that's including the recession.
Indeed, according to the U.S. Department of Commerce's Bureau of Economic Analysis, GDP annual growth per capita (to adjust for population growth) averaged 1.68% between 1980 and 2010 when top tax rates were relatively low, while growth averaged 2.23% between 1950 and 1980 when top tax rates were at or above 70%.
For example, from 1970 to 2010, real GDP annual growth per capita averaged 1.8% and 2.03% in the U.S. and the U.K., both of which dramatically lowered their top tax rates during that period, while it averaged 1.72% and 1.89% in France and Germany, which kept high top tax rates during the period.
But a government has little to no ability to increase long-run growth in real per capita GDP from 2% per year to 3% per year.
Tanzania is one of the world's poorest economies in terms of per capita income, however, Tanzania averaged 7% GDP growth per year between 2000 and 2008 on strong gold production and tourism.
If we analyze by annualizing that 203% growth in the consumer market, GDP per capita will have to grow at a rate of 6% and consumer spending will grow at 7.8% between now and 2020, outpacing GDP growth by nearly 2%, consistently for the next 8 years.
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