Because the general population hasn't had a pay increase in years that hasn't been consumed by health insurance costs, and oil prices going sky high...so with less money in peoples pockets due to cost of living going up much faster than their pay stubs, less demand is seen as people are trying as hard as they can to save money, but can't anyway
If you're arguing that tax cuts on business owners and getting rid of regulation leads to more demand than you're flat wrong and I disagree with that notion. If you agree that demand is the problem, than you would be for demand side solutions which is not what you're currently advocating for.
*your
That's been happening for years and yet the economy remained at more or less full employment. The primary detriment to aggregate demand ATM is private debt levels, which are very very high, and that is being compounded by joblessness which only serves to increase the burden of debt. We're in a liquidity trap, and so things will remain stagnant until either a) the debt is down to normal levels, or B) expansionary fiscal policy. The first option leaves us in this stagnant state ala Japan's lost decade and the second option closes the output gap, reaches full employment, and lessens the burden of debt (so over the long run, option B is the best option bar none).Because the general population hasn't had a pay increase in years that hasn't been consumed by health insurance costs, and oil prices going sky high...so with less money in peoples pockets due to cost of living going up much faster than their pay stubs, less demand is seen as people are trying as hard as they can to save money, but can't anyway
ya mean, the unemployment rate tha we were left with after bush did all the tax cutting?
caught AND exonerated
Do you read a thing I write?! I'm saying create jobs. Cut taxes. More people with more money will create more people willing to buy.===MORE DEMAND!!!
witness the delusion.
I'm not just saying their taxes. I'm saying EVERYBODY'S taxes? WTF?
Reagan didn't prove anything. Paul Volcker, chairman of the Federal Reserve, deserves every ounce of credit for the economic success of that era.
Every time you are wrong you resort to typing errors... You are a true LOSER!
The federal reserve is the main problem with our country.
I like to think about all the doctors who supported cigarettes in the 70s when I think about fudging charts...now THATS classic =)
Keep telling yourself that.
since supply side reaganomics have been implemented, wages for american workers have remained stagnant for 30+ years while productivity has increased.
not every time, just this one.
^^ Fixed it for you