Joe Stiglitz: Why the world economy's malaise continues

[ish mailian]

OK, but if demand is not declining, the price level is not increasing, the
story is supply. That's the story, Gerry.

On Thu, Jan 14, 2016 at 4:59 PM, David Morris <fqmorris at gmail.com> wrote:

> 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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