Re:Why Were Economists as a Group as Useless Over 2010-2014 ...
by thatfrenchguy on Monday April 03, 2017 @08:19PM
(#14028467)
In all western societies, looking at the great lifestyle differences between the 1970s and now.
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Re:Why Were Economists as a Group as Useless Over 2010-2014 ...
by gozur88 on Monday April 03, 2017 @08:27PM
(#14028513)
Is that growth, or does that fall under "eating the seed corn"? I agree the money supply has to expand when the economy expands, but that's not the same thing as printing a bunch of money and spending it during a recession.
Re:Why Were Economists as a Group as Useless Over 2010-2014 ...
by Gibbon1 on Monday April 03, 2017 @09:45PM
(#14028887)
In theory in a properly managed recovery from a recession bad debt is eliminated via loan restructuring and new more productive debt is created to replace it. And income insurance programs[1] are used to support demand. Austerity during a recession works poorly because instead of replacing unproductive debt with new more productive debt, austerity attempts to subsidize the owners of bad debt by taxing demand.
[1] Unemployment insurance, welfare, state run retirement, pensions, etc.