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Politics : View from the Center and Left

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To: Steve Lokness who wrote (268353)	1/30/2015 12:34:12 PM
From: Sam	Read Replies (1) of 541008

How do you meet more and more demand? More capacity! No, that isn't correct. What Krugman advocates is for the govt create demand when the private sector has fallen into one of its cyclical downturns. During a cyclical downturn, there is plenty of unused capacity, both in terms of idle factories and unemployed or underemployed workers. Use existing capacity. Don't create "new" capacity.

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