Secular stagnation- The second best solution | Forex Factory

  • Secular stagnation- The second best solution

    From economist.com

    WITH a string of talks and op-ed columns, Larry Summers has revived discussion in the "secular stagnation" hypothesis. Income has become concentrated in the hands of groups, like reserve-accumulating foreign governments and the rich, with low propensities to consume, the thinking goes. That has generated excess saving and pushed down real interest rates until they are substantially negative at many durations. That, in turn, has made life very difficult for central banks, which have struggled to stoke up adequate demand with nominal interest rates wedged up against zero. Mr Summers identifies three broad solutions ... (full story)

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traderathome
Jan 21, 2014 1:58pm
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Focus on initiating "public works" projects? Yes, that is good, so long as it creates decent paying jobs for the countless unemployed,......DECENT PAYING JOBS, not contracts for the companies of the super-rich wherein the self-centered, greedy, unpatriotic super-rich siphon off millions in personal pay packages, and hire those that will do the real work at slave wages!

Some decent government stipulations and oversight with some "clobber" to it, is required here.

Also, we need to dramatically increase taxes on the extremely wealthy. We also need to cease with such ridiculous tax subsidies as, for example, the tax subsidies to oil companies that make more profits than anyone else! Really, why does a profit making industry, no......read that as an industry that makes consumer gouging profits on an unceasing basis......need government subsidies?

See, we need to look at the super-rich in all quarters. if we are to save this democracy, we need to knock them off their pedestals, those pedestals they sit on that were erected on the backs of everyone else's labor and which are maintained by the continual and expanding advantage taking of others.
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vox dei
Jan 21, 2014 3:35pm
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Quoting traderathome
Focus on initiating "public works" projects? Yes, that is good, so long as it creates decent paying jobs for the countless unemployed,......DECENT PAYING JOBS, not contracts for the companies of the super-rich wherein the self-centered, greedy, unpatriotic super-rich siphon off millions in personal pay packages, and hire those that will do the real work at slave wages!

Some decent government stipulations and oversight with some "clobber" to it, is required here.

Also, we need to dramatically increase taxes on the extremely wealthy. We also...
'save this democracy' - What democracy? Democracy, from the ancient Greek 'rule of the people', was and is but an illusion. Money buys politicians. That said, 1 super rich guy has more sway over politicians than 1 million poor. Bribery isn't even a crime but simply business as usual in most of the world. In the US it's called lobbying and was even made legal.
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