The economy is growing too fast in the negative direction. I suspect this is part of the plan form the FED to make their world bank handles rich at our expense.
I know a lot of people in MA who think electing a Socialist in 2016 will really get this economy moving.
Nice to see Krugman take it on the chin.
There are a number of reasons why the economy isn’t growing.
A major one is that there is a shortage of buildable land that is rationally priced. Why? Because governments have the funny idea that urban areas should be contiguous.
Sprawl is an American tradition. Working men created a town in Westchester County in 1846 when most Manhattan was building up south of 14th Street. Hyattsville and Chevy Chase were built up miles past the boundaries of the City of Washington.
Almost all land should be residentially zoned except:
1. land flooded within the past 100 years
2. land used for industrial purposes or adjacent land owned by the same entity
3. land owned by a government and not suitable for residential use (such as a landfill site)
The second major problem is that government has made it very undesirable to be a job provider.
Lower taxation rates pay off in the long term.
In the Washington, DC area one only has to compare nearby Maryland and Virginia.
Virginia came from behind Maryland and won the economic growth rate race.
Consider Detroit and its suburbs. Detroit has an income tax. Detroit has lost the growth race big time.
Consider Chevy Chase, Maryland and its large homes. Why are they there?