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Reply #109: You said the economy is in 'phenomenal shape' (your words) and [View All]

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coalition_unwilling Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jun-05-11 07:55 PM
Response to Reply #108
109. You said the economy is in 'phenomenal shape' (your words) and
Edited on Sun Jun-05-11 07:58 PM by coalition_unwilling
I responded that certain measures of unemployment are approaching levels last seen in January 1933 (when FDR was inaugurated). Now if you still wish to maintain that a situation where 20-25% of the work force is un- or underemployed represents an economy in 'phenomenal shape,' be my guest. I certainly will not be able to talk you out of it with a discussion of statistics that economists typically use to measure the health (or lack thereof) of the macro economy.

FWIW, this economy represents a classic textbook case of under-utilization of productive capacity due to anemic demand from consumers and businesses. In such a scenario, the standard Keynesian model calls for massive expansion of government spending to 'prime the pump' and compensate for the anemic consumer and business demand. Instead of cutting spending to balance the budget as the Repukes want to do, we should be increasing government spending, even at the cost of increasing the budget deficit, in the interests of moving the economy back towards full employment.
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