Economic growth is important because it makes it so much easier to feasibly transition out of the large welfare statist programs such as Social Security, Medicare, Medicaid, and government (public) education. Annual economic growth in the U.S. has averaged around 2% the past 10 years19. This is anemic compared to most historical periods. If that continued the next 10 years, the per capita income would grow 22%. However, if we could double it to 4%—not a very ambitious goal by historical standards—the per capita income would be 48% larger. And with 8% growth—challenging but by no means impossible—the average personal income will have more than doubled 10 years from now at 116%. Assuming for simplicity’s sake that your pay keeps up with economic growth, $100 would become $122 in 10 years with 2%, $148 with 4%, and $216 with 8% growth. Such is the power of compounding.
Think Right or Wrong, Not Left or Right 