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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?


To: Steve Lokness who wrote (8337)2/7/2012 2:24:40 PM
From: TimF  Read Replies (1) | Respond to of 85487
 
Housing was a BUBBLE. That bubble created unnatural demand

To the extent that the demand is unnatural, why should it be made up? Growth will resume as other forms of supply and demand increase over time. As new sustainable "natural" patterns of specialization and trade are figured out.

Message 27932109
Message 27932133

bargain prices; yup - there's your crap coming in from China!

Hardly just from China. More goods sold in the US are made in the US than in China.

In any case there is too much focus on aggregate demand. Demand isn't an aggregate, its for specific goods and services and specific prices.

And to the extent aggregate demand tells us anything useful about economic slowdowns, and is something that should be addressed, monetary policy would be a far better way to address it than any attempt at fiscal stimulus.