MAY-JUN 2018

Crossties is published for users and producers of treated wood crossties.

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CONTACT RTA WEBSITE BECOME A MEMBER BECOME A MEMBER RTA WEBSITE CONTACT Cahaba Pressure Treated Forest Products Eagle Metal Products East Coast Railroad Gross & Janes Co. Hurdle Machine Works Koppers Inc. CROSSTIES • MAY/JUNE 2018 8 ITR ECONOMICS 800.237.6880 MADE IN AMERICA HEADQUARTERS 607 Front St. • Central City, KY 42330 From left to right: Richard Piper, Welder/Fabricator for 25 years Rick Moore, Welder/Fabricator for 32 years Rick "Killer" Yeomans, Hydraulic Specialist for 34 years, 20 in the US Army David Piper, Equipment Designer and Sawmiller, 50 years David "Dave" Broussard, PLC Automation Specialist, 25 years Editor's Note: The following is reprinted with permission from the May 24, 2018, blog written by ITR Economics CEO Brian Beaulieu. Find this and other blogs at Disclaimer: I am a capitalist. I believe in the capitalist system. Not perfect but better than any alternative. "Secular stag- nation" is meant to describe a market-based economy that experiences slow growth or no growth. Secular is used to imply a long-term condi- tion as opposed to the cyclical variety with which we usually deal. The reasons for fearing or prognosticating no-growth sce- narios vary depending on your economic philosophy. They typically include concepts like too high of a savings rate, no growth in the population, and unemployment is too high. There is another reason we add to the list: inefficiencies. This could be govern- ment intervention under many guises, but it is generally made manifest as socialism, or perhaps a form of socialism. Japan has been through a prolonged period of secular stagnation. It could be claimed that Europe is in the early stages of secular stagnation. Some folks are tempted to say that the list includes the U.S. because we are not growing as fast as we used to on an average per annum basis. Some advocates of this economic label like to use it as a reason why the government must intervene even more into the economy. This is an interesting twist because from our per- spective it means infecting the patient with more of the cause of the illness. Planned economies (think Russia) are more likely to be plagued with this economic malady than market-based economies because of their demographics and state-sanctioned inef- ficiencies. Attributing this condition to the U.S. is a mistake because: • Our population is growing. • We are seeking ways to become more and more competitive. • We excel at getting around the road- blocks governments impose. • We have a wealth of diverse natural resources that many other economies can only dream about. The U.S. will continue to grow in real dollar terms, at an average per annum rate, superior to Western Europe, Russia, and Japan over the next decade. Additionally, the U.S. will still be the world's largest economy in 2029. 4 Reasons Why Secular Stagnation Does Not Describe The U.S. Insights from ITR Economics' CEO By Brian Beaulieu Beaulieu

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