1/5
The biggest cost to the US economy is when workers are willing but unable to find productive jobs. That is why a major economic stimulus can bring short-term growth to the US economy without worsening the long-term debt burden. But unless...
ft.com/content/05e07e…
The biggest cost to the US economy is when workers are willing but unable to find productive jobs. That is why a major economic stimulus can bring short-term growth to the US economy without worsening the long-term debt burden. But unless...
ft.com/content/05e07e…
2/5
a substantial part of domestic demand is prevented from leaking abroad too easily, the US will bear the full cost of the stimulus while sharing the growth benefits with countries that are less aggressive in paying for domestic stimulus programs, especially with countries...
a substantial part of domestic demand is prevented from leaking abroad too easily, the US will bear the full cost of the stimulus while sharing the growth benefits with countries that are less aggressive in paying for domestic stimulus programs, especially with countries...
3/5
like China that have responded to the collapse in domestic and foreign demand mainly by supporting domestic production.
A US stimulus that doesn't cause the trade deficit to explode, in other words, will be far more effective than one that does. This is true not just...
like China that have responded to the collapse in domestic and foreign demand mainly by supporting domestic production.
A US stimulus that doesn't cause the trade deficit to explode, in other words, will be far more effective than one that does. This is true not just...
4/5
for the US but also for any country that tries to support domestic demand. The world is struggling with weak demand, but countries that reinforce demand will see their deficits explode versus countries that implement manufacturing subsidies and other supply-side policies.
for the US but also for any country that tries to support domestic demand. The world is struggling with weak demand, but countries that reinforce demand will see their deficits explode versus countries that implement manufacturing subsidies and other supply-side policies.
5/5
Our system of near-frictionless global trade and capital, in other words, in which nations compete mainly by lowering the wage share of production and exporting excess savings abroad, puts systemic downward pressure on demand, just as Keynes warned in the 1940s.
Our system of near-frictionless global trade and capital, in other words, in which nations compete mainly by lowering the wage share of production and exporting excess savings abroad, puts systemic downward pressure on demand, just as Keynes warned in the 1940s.
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