Joe Stiglitz: Why the world economy's malaise continues

[David Morris]

Ergo, a lack of demand (glut) story.

On Thu, Jan 14, 2016 at 3:31 PM, ish mailian <ishmailian at gmail.com> wrote:

> Sorry about that; I thought it was a free article. It's an excellent
> article. And yes, it is focused on China, but the overproduction is not
> just a China story.
>
> The super capacity that was built to meet the expected super demand of the
> developing and emerging growth economies, in China and elsewhere, is the
> story, a supply story.
>
> On Thu, Jan 14, 2016 at 4:07 PM, David Morris <fqmorris at gmail.com> wrote:
>
>> This article is behind a paywall, but if the first two sentences portend
>> its content, then it seems to be saying that a glut of Chinese goods is
>> slowing growth.  More demand would be the solution to this problem.  Lack
>> of demand is its cause.
>>
>> David Morris
>>
>> On Thu, Jan 14, 2016 at 2:56 PM, ish mailian <ishmailian at gmail.com>
>> wrote:
>>
>>> Because it's true.
>>>
>>>
>>> http://www.wsj.com/articles/glut-of-chinese-goods-pinches-global-economy-1433212681
>>>
>>> On Thu, Jan 14, 2016 at 3:49 PM, Robert Mahnke <rpmahnke at gmail.com>
>>> wrote:
>>>
>>>> Why do you say that?
>>>>
>>>> On Thu, Jan 14, 2016 at 12:37 PM, ish mailian <ishmailian at gmail.com>
>>>> wrote:
>>>>
>>>>> The world is not not suffering from too little demand but with too
>>>>> much supply and with too much capacity.
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> On Thu, Jan 14, 2016 at 3:00 PM, David Morris <fqmorris at gmail.com>
>>>>> wrote:
>>>>>
>>>>>> 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:
>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> http://www.huffingtonpost.com/joseph-e-stiglitz/world-economy-2016_b_8908560.html?utm_hp_ref=world
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>
>>>>>>
>>>>>
>>>>
>>>
>>
>
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