Davos: The hedgies explain your future to you
Ray Dalio, who runs Bridgewater, the world’s biggest hedge fund, had probably the clearest take on this low-growth world. In a post-crisis, high-debt global economy, Dalio said, economic growth can’t come from debt, as it did during the last few decades or so. Economies are still deleveraging, debt won’t rise faster than income and the primary way large economies can grow is by increasing productivity. (CNBC has a bit more on his philosophy here).
What does Dalio actually mean by this? Dalio expanded a bit: the big conversation in politics and economics, he said, will be about how to get more out of workers – growth won’t come from the next Internet, the next real estate boom or any new asset, in other words. This means, he said, hard choices about questions like “How long is a vacation?” or “What is a good life?”
Ah, "hard choices."