Potential GDP growth = labor supply growth + productivity growth
The challenge with returning to +/- 3.5% GDP growth is that potential employment is now flat for the first time in modern era. We achieved >3% GDP growth in previous decades because employment was growing at 1.5%+.
I’m moderately optimistic that the data center backlash has peaked. A month ago there were many calls for moratoriums. The discussion feels more nuanced even in the past few weeks, changing from whether to ban to how to develop responsibly.
More politicians are leaning in by
This video is amazing because it's 3 minutes about how terrible Flock cameras are and then the last 20 seconds saying we need a constitutional way in which we can find a kidnapper or someone who wondered off with dementia, exactly describing Flock cameras.
Politicians from across political spectrum coalesce around these 6 principles on data centers:
1) Pay direct & indirect power costs
2) Sustainable water usage
3) Communities have voice
4) Large community benefit
5) Rethink tax incentives
6) Transparency on the above
