Joe Stiglitz: Why the world economy's malaise continues

[David Morris]

Lack of demand is one of the basic causes of over-supply (glut), and that
lack of demand might be caused by any number of things, like lack of money
(liquidity). Overproduction (exceeding demand) might be another cause.
Cheap money would not be one of its causes.

David Morris

On Thu, Jan 14, 2016 at 3:42 PM, Robert Mahnke <rpmahnke at gmail.com> wrote:

> When demand exceed supply, how do you distinguish between "a supply story"
> and a demand story?
>
> On Thu, Jan 14, 2016 at 1:31 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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