Joe Stiglitz: Why the world economy's malaise continues

[ish mailian]

Maybe this will help?

http://www.japantimes.co.jp/news/2012/11/05/business/excess-supply-not-lack-of-demand-weighing-on-the-global-economy/#.VpganfkrIb1

On Thu, Jan 14, 2016 at 5:41 PM, Mike Weaver <mike.weaver at zen.co.uk> wrote:

> 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> 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>
>> 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>
>>>> 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>
>>>>> 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>
>>>>>> ishmailian at gmail.com> wrote:
>>>>>>
>>>>>>> Because it's true.
>>>>>>>
>>>>>>>
>>>>>>> <http://www.wsj.com/articles/glut-of-chinese-goods-pinches-global-economy-1433212681>
>>>>>>> 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>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>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>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>rpmahnke at gmail.com> wrote:
>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>> <http://www.huffingtonpost.com/joseph-e-stiglitz/world-economy-2016_b_8908560.html?utm_hp_ref=world>
>>>>>>>>>>> http://www.huffingtonpost.com/joseph-e-stiglitz/world-economy-2016_b_8908560.html?utm_hp_ref=world
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>
>>>>>>>>
>>>>>>>
>>>>>>
>>>>>
>>>>
>>>
>>
>
>
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