What you will find is that the lag between production and consumption works out as if it were a "constant" in the differential equations and is... dropped. In

What you will find is that the lag between production and consumption works out as if it were a "constant" in the differential equations and is... dropped. In general more investment means more growth, but sometimes investment isn't the bottleneck. I don't know how much you can generalize from the economy since 2007 but is looks like monetary velocity is just plain old down. I don't believe in the stereotypical welfare bum. It does not square with what I have seen. YMMV. Tyler Cowan and others have been talking A Lot about "zero marginal product" workers. Given the length and depth of the recession, you wonder if this is the "new normal" and if it is, we'll have to adjust to it. But I am sure we had the same thoughts in '73. '81-82, '91, '01... still, each recession, some workers are permanently displaced.