Joe Stiglitz: Why the world economy's malaise continues

[David Morris]

The economics of this inertia is easy to understand, and there are readily
available remedies. The world faces a deficiency of aggregate demand,
brought on by a combination of growing inequality and a mindless wave of
fiscal austerity. Those at the top spend far less than those at the bottom,
so that as money moves up, demand goes down. And countries like Germany
that consistently maintain external surpluses are contributing
significantly to the key problem of insufficient global demand.

At the same time, the U.S. suffers from a milder form of the fiscal
austerity prevailing in Europe. Indeed, some 500,000
<http://thinkprogress.org/yglesias/2011/07/08/263588/the-conservative-recovery-continues-2/>
fewer
people are employed by the public sector in the U.S. than before the
crisis. With normal expansion in government employment since 2008, there
would have been two million more.

On Thu, Jan 14, 2016 at 1:39 PM, Robert Mahnke <rpmahnke at gmail.com> wrote:

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