27 I think that Samuelson’s analysis can help to explain why the trend rate of income growth in the advanced economies might have slowed down substantially during the last few years, upsetting the social and political balance on which that growth rested.
For instance, it is reasonable to assume that the financial sector, the car industry and the construction sector are likely to shrink. In my view, the economies that will suffer the most are those where the financial sector has expanded significantly in the last 20 years in connection with the boom in the housing sector.