University of Massachusetts Lowell Drivers for Economic Growth Discussion
Question Description
Dalio runs the biggest hedge fund in the world. He has a macro approach where he uses his understanding of the broad economy to make investment decisions. He created this short video to explain his understanding of how the economic machine works.
Step 1: Please summarize your thoughts on this video in a single paragraph (preferably 200 words).
Step 2: Answer the following question (50-100 words):
I was a little confused by his second point in the videos ending synopsis. Can you offer an explanation (with references to the video) as to why Dalio concludes in point 2: Dont have income rise faster than productivity because you will eventually become uncompetitive? Is Dalio asserting that if incomes rise faster than productivity, people will become less motivated and lazy (less productive) causing an economic downswing?
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