Joe Stiglitz: Why the world economy's malaise continues

[Mike Weaver]

It's not really about production, it's about distribution.

On 14/01/2016 22:12, David Morris wrote:
> Does the article say deceased demand isn't the cause of over supply?  
> Since I can't read it...
>
> David Morris
>
> On Thu, Jan 14, 2016 at 4:08 PM, ish mailian <ishmailian at gmail.com 
> <mailto:ishmailian at gmail.com>> wrote:
>
>     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
>     <mailto: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 <mailto: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 <mailto: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 <mailto: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
>                     <mailto: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
>                         <mailto: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
>                             <mailto: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.
>
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>                                 On Thu, Jan 14, 2016 at 3:00 PM, David
>                                 Morris <fqmorris at gmail.com
>                                 <mailto: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
>                                     <mailto: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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