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To: smolejv@gmx.net who wrote (5711)	7/8/2001 1:06:01 AM
From: smolejv@gmx.net	Respond to of 74559

now to something completely different, as Monty Python would say: the earnings picture in Germany keeps deteriorating xave.de dj

To: smolejv@gmx.net who wrote (5711)	7/8/2001 1:19:49 AM
From: Ilaine	Read Replies (1) \| Respond to of 74559

>>What I termed supply-side recession.<< You mean, there is no problem with the supply side, there's plenty of unused capacity, but there's not enough demand? I think that, anyway, and if that is what you think, I think so, too. Been thinking about it a lot, lately. The problem with the thoughts I have is that they don't fit easily into a Classical, free-market economic framework. The world is full, full, full of people who don't have their demands filled, don't even have their minimum demands fulfilled, but they don't have the cash to pay for what they need, much less what they want. So we can't sell them an SUV, much less a Lexus, but maybe some rice, a new T-shirt, a pair of shoes, and go from there?

To: smolejv@gmx.net who wrote (5711)	7/8/2001 2:33:45 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

Dolinar - Nah, it's not that simple - money just being pushed around, like "can you Fedex it to me" etc. It involves decisionmaking etc. I personally dont like the equation, it's my (too) scientific background, but it still is or at least hints at some basic law.... The decisionmaking comes in when individuals make subjective decisions to balance the purchase of current goods, current money expenditures and saving to fund expenditure decisions in an uncertain future. The velocity of money only matters to the portion that you transport in a wheelbarrow. There is no benefit to hinting at some basic law that doesn't exist, or creating a useless tautology. Regards, Don