WHY ARE ECONOMIES AROUND THE WORLD STALLING OUT?
Stall speed is the airspeed at which an aircraft stops producing lift. Unless immediate corrective action is taken, such as reducing the wing's angle of attack or the weight of the aircraft, the results are not likely to be good. An economy can hit "stall speed" when it becomes burdened with too much dead-weight loss.
The eurozone economies have hit stall speed, with France, Germany, Italy and Spain, as well as most of the smaller economies, having negative growth. In addition, the United Kingdom and Japan are barely above stall speed with an annual growth rate of less than 1 percent.
The United States, Canada, Russia and Brazil are in the danger zone, all with annual rates of less than 2 percent growth.
The basic questions are: Why has growth stalled, and what needs to be done to revive it? Good economists know the following: