A Critique of Grantham and Gordon: The Prospects For Long-term Growth

Aim: To present the pessimistic prediction by economist Robert Gordon and investment strategist Jeremy Grantham about the end of the vigorous global economic growth of the last two centuries, critique that prediction and provide an optimistic forecast for global GDP.

Outcome: Completion of this module will enable financial advisers to:

  • Compare the arguments of economist Robert Gordon and investment strategist Jeremy Grantham, about the end of the vigorous global economic growth, with those of the author in support of the case for bullish growth. 
  • Take into account the author’s optimistic forecast for global GDP when developing investment strategies for clients.

Abstract: Economist Robert Gordon and investment strategist Jeremy Grantham’s pessimistic prediction for a slowdown in global economic growth is discussed and critiqued. Gordon and Grantham’s arguments in support of their prediction are explained and then countered, concluding with an optimistic forecast for global GDP growth.