Loss of Dynamism Is Impeding Growth Image A solar panel factory in Hillsboro, Ore. A decline in business formation has contributed to a flattening of the labor supply. Credit Natalie Behring/ReutersCan the market economy still deliver prosperity? In the United States, the rate of company formation is half what it was four decades ago. The stagnation poses a threat to the market economy’s main claim to legitimacy: that it delivers prosperity. But labor market fluidity — job switching, creation and destruction — has been declining since the 1980s.

Source: New York Times February 06, 2018 16:41 UTC