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LACK OF DEMAND...wages stagnate. You seem to be wildly misunderstanding Keynesian economics - the entire purpose of stimulating demand is to create inflation a
by yummyfajitas 11y ago
LACK OF DEMAND...wages stagnate.
You seem to be wildly misunderstanding Keynesian economics - the entire purpose of stimulating demand is to create inflation and lower real wages.
Further, all your premises are definitively false in the US. Debt levels are falling, and aggregate demand (i.e. NGDP) has been steadily rising.
https://research.stlouisfed.org/fred2/series/GDP https://research.stlouisfed.org/fred2/series/GDP
http://www.businessinsider.com/deutsche-bank-lavorgna-americas-debt-to-gdp-pre-crisis-2012-6 http://www.businessinsider.com/deutsche-bank-lavorgna-americ...
https://research.stlouisfed.org/fred2/series/HDTGPDUSQ163N https://research.stlouisfed.org/fred2/series/HDTGPDUSQ163N
https://research.stlouisfed.org/fred2/series/TOTDTEUSQ163N https://research.stlouisfed.org/fred2/series/TOTDTEUSQ163N
Globally GDP also is rising: https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_pcap_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:GBR:RUS:FRA:CHN:IND:NGA:ZAF:DEU&ifdim=region&hl=en&dl=en&ind=false https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&...
This is what you get if productivity rises sky high over decades and at the same time wages stagnate.
Employee compensation has been rising, it's just shifted from taxable wages to untaxed benefits.
https://research.stlouisfed.org/fred2/series/ECIALLCIV https://research.stlouisfed.org/fred2/series/ECIALLCIV
Why don't you do even a tiny bit of research before posting? Literally every word of your post is false.
- j3116294 11y agoWouldn't paying off debts and lack of demand go hand in hand?
- yummyfajitas 11y agoApparently not, as the graph of NGDP shows.
- deleted 11y ago[deleted]
- sprash 11y agoYou are talking about the US which indeed has done a little bit better in the past 3 years than the rest of the world. However US economy does not equal the world economy.
- yummyfajitas 11y agoI included a link with global GDP also. I just know the US stats better, so I included more of them.