Alex Klaben

Debt and Demographics: Capital Went Global, Politics Stayed Local

Anand Desai, Alexander Klabin, David Malpass, Alan Schwartz, Alex Klaben

This panel examines the structural decoupling of the US economy from historical norms, characterized by aging demographics, surging public debt, and a stagnation in labor dynamism that has left corporate investment ratios at sixty-year lows. Experts highlight a critical divergence where robust liquidity flows into government debt and established corporations while small businesses and young workers face regulatory barriers and a lack of capital, exacerbating inequality and a skills mismatch. The discussion concludes that these distortions necessitate a redefinition of investment toward "soft assets" like education and a shift in policy focus to foster small business formation, as political uncertainty threatens to shorten future business cycles.