Bewitched, becalmed, bewildered {Economics}

PJ Media ^ | July 7, 2017 | Richard Fernandez

[Mechanicos]

In the first decade of the 21st century Western economic growth entered the doldrums. The question was why. Former Harvard president Larry Summers noticed that something changed after the 2008 financial meltdown. The economic spring which had always bounced back had lost its elasticity. He diagnosed it as secular stagnation. .... Most observers expected the unusually deep recession to be followed by an unusually rapid recovery .... Had the American economy performed as the Congressional Budget Office fore­cast in August 2009—after the stimulus had been passed and the recovery had started—U.S. GDP today would be about $1.3 trillion higher than it is.

[Mechanicos]

"Now look forward. The Census projects that the population aged 18 to 64 will grow at an annual rate of only 0.2 percent between 2015 and 2025. Unless labor force participation not only stops declining but starts rising rapidly again, this means a slower-growth economy, and thanks to the accelerator effect, lower investment demand. .."

[txrefugee]

Millions of abortions will be the downfall of the American economy. Over 60 million future workers and taxpayers have been exterminated. They will be sorely missed.

[PeterPrinciple]

 ”One way to get there would be to reconstruct our whole monetary system – say, eliminate paper money and pay negative interest rates on deposits.” The other way might be to avoiding discouraging “irresponsible lending and borrowing at a time when more spending of any kind is good for the economy.”

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Ok the choice was eliminate paper money and neg interest rates OR encourage irresponsible lending.

Which did they choose?

[PeterPrinciple]

This may sound outrageous to the layman but it is all in a days work in a discipline where burying currency in coalmines and faking threats from space aliens is good policy.

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burying currency in coal mines to encourage the economy. It was real in their minds:
http://www.americanthinker.com/articles/2011/02/bury_keynesianism_not_cash_in.html

annnnnnnnnnnnnnnnnnd the space aliens.

https://www.youtube.com/watch?v=jaED2ErdIv8

[i_robot73]

>
”One way to get there would be to reconstruct our whole monetary system – say, eliminate paper money and pay negative interest rates on deposits.” The other way might be to avoiding discouraging “irresponsible lending and borrowing at a time when more spending of any kind is good for the economy.”
Ok the choice was eliminate paper money and neg interest rates OR encourage irresponsible lending.

Which did they choose?
>

Always the false dichotomy, *NEVER* is the solution of ‘smaller govt’ considered. I know, I know, silly me...

[central_va]

It's simple. The heart of any economy is mining, manufacturing and agriculture. If you off shore manufacturing your economy can't "spring" back because there is no spring there anymore.

Thanks globalism...

[Flick Lives]

Thanks for the link. A good, if scary, look into the upside down thinking of kenssian ecconomics. Reversing cause and effect, they think money creates wealth. Sound money is simply a reflection of capital, which is something of actual value (e.g. a house).

[thirst4truth]

The reason it did not grow and we have the prof is becasue an avowed Marxist was in charge and was fundamentally changing America.
ACA and Dodd Frank ruined the recovery. Giant programs with massive lines of regulations destroyed any business from investing. I was in Real Estate in the build up and the crash and then Dodd Frank to fix it, they made it so much worse. Everyweek I would hear of delays in closings because the title companies were trying to comply with the new financial regulation, a certain figure on a certain line in the closing statements. Re writtin 5 or 10 times. The title companies had to hire expensive programmers to reprogram the new regulations to fit the Marxists. It was insane and so expensive for them, I hate The Dems for ruining these two huge industries.

[Sam Gamgee]

A couple problems. One, the idea that government can stimulate the economy is part of the Keynsian/Galbraith leftist economic movement - and is totally nonsense.

Secondly, the article is talking in absolutes. So, yes, as the population decreases we should see less absolute growth. I wish the media and governments would go back to talking about “GDP per capita”. Of course if the population rises 3% you would want to see 3% GDP growth - just to keep even.

[Sam Gamgee]

How about take apart Goldman Sachs would sold mortgage backed securities only to bet against them?

[Kickass Conservative]

>>>burying currency in coal mines to encourage the economy<<<

Bury the Money in Uranium Mines, that way you can’t touch it for Thousands of Years.

Then there was this:

https://www.youtube.com/watch?v=hW2XtG7hxF0