Re:What's holding back the world economy?
by j3116294 on Tuesday February 09, 2016 @07:21AM
(#11064780)
Wouldn't paying off debts and lack of demand go hand in hand?
Re:What's holding back the world economy?
by yummyfajitas on Tuesday February 09, 2016 @07:23AM
(#11064790)
Apparently not, as the graph of NGDP shows.
Re:What's holding back the world economy?
by sprash on Tuesday February 09, 2016 @09:54AM
(#11065641)
You 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.
Re:What's holding back the world economy?
by yummyfajitas on Tuesday February 09, 2016 @09:58AM
(#11065674)
I included a link with global GDP also. I just know the US stats better, so I included more of them.
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
http://www.businessinsider.com/deutsche-bank-lavorgna-americ...
https://research.stlouisfed.org/fred2/series/HDTGPDUSQ163N
https://research.stlouisfed.org/fred2/series/TOTDTEUSQ163N
Globally GDP also is rising: 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
Why don't you do even a tiny bit of research before posting? Literally every word of your post is false.