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Capital Gains and Games: Nominal Spending Crash
EconLog: Library of Economics and Liberty: Reducing Real Compensation
Marginal Revolution: Fifty Years of Economic History in one Figure
Reactions
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RT @UnthinkableAge: A chilling chart on the depth of the economic correction http://bit.ly/3jzlrE 33 hours ago |
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Global Spending Spree http://bit.ly/3jzlrE 9 days ago |
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Josef Šlerka: Global Nominal Spending History http://bit.ly/3jzlrE // nice 14 days ago |
Nominal Spending Crash
Capital Gains and Games —
Further evidence that the decline in spending is our central economic problem.
http://macromarketmusings.blogspot.com/2009/11/global-nominal-spending-history.html ...
Reducing Real Compensation
EconLog: Library of Economics and Liberty —
... highlights a post by David Beckworth on the sharp decline in nominal spending in 2008-2009. Alex writes, We could use some inflation to get back on track. Nominal wages are simply not flexible enough to get the job done in short order I would caution that lower real wages are only part of the solution to the Recalculation problem. The process also will involve transitions into and out of industries and occupations. But it certainly would not hurt to reduce real compensation. Some ideas for doing this: 1. Cut the employer contribution to the payroll tax. Bryan first ...
Fifty Years of Economic History in one Figure
Marginal Revolution —
David Beckworth sums up a lot of recent economic history in one figure. A few thoughts: I wish Arnold Kling were correct that inflation is around the corner. We could use some inflation to get back on track. Nominal wages are simply not flexible enough to the the job done in short order and there is much to fear from populist backlash. See also the link above for a remarkably similar figure for the OECD which illustrates the US's role of monetary hegemon.
Truth in Something
Lawrance G. Lux —
One of the most aggravating aspects of the different economic schools of thought lies in the fact your primary positions are sometimes challenged. Such is the content of this piece from David Beckworth. I cannot truly evaluate the first Graph without an overlay on Government Spending in the same Period (including federal, State, and Local); this to ascertain that the Spending came from the Private consumer, and not the Government. My thinking holds that Private Spending has actually moderated since 1970, except for the insanity of Home purchasing of the last Boom. The later ...
Nominally misguided (wonkish)
Paul Krugman —
David Beckworth has been getting a lot of attention with this figure on nominal spending: And it’s certainly suggestive. But I disagree with the interpretation that this shows that the current slump is mainly about insufficiently expansionary monetary policy. And more broadly, I think that efforts to make sense of recent events in terms of money velocity — such as, in particular, ...
