Why No Jobs?
Other than structural problems I offer you this:
Just 6 months into the Great Recession in Mid 2008, the typical American Family earning less than $90K a year spend on the average of $105 bucks a day. One year later they are spending only $60 bucks.
What did they spend in May 2010? $60 Bucks.
How about May 2011? Say it again....$60 Bucks.
We are in the midst of a balance sheet recession. Yes! This is the problem. Too much household debt not enough aggregate demand. Monetary policy is completely impotent in this economic scenario.
Its not a supply side story as there is no demand. Tax cuts across the board would help only pay down household debt basically shrinking the economy further.
So whats the frequency Kenneth?
One Word.....TIME!
Time to pay down household debt.
Time to work through excess housing inventory.
That's it.
Other than structural problems I offer you this:
Just 6 months into the Great Recession in Mid 2008, the typical American Family earning less than $90K a year spend on the average of $105 bucks a day. One year later they are spending only $60 bucks.
What did they spend in May 2010? $60 Bucks.
How about May 2011? Say it again....$60 Bucks.
We are in the midst of a balance sheet recession. Yes! This is the problem. Too much household debt not enough aggregate demand. Monetary policy is completely impotent in this economic scenario.
Its not a supply side story as there is no demand. Tax cuts across the board would help only pay down household debt basically shrinking the economy further.
So whats the frequency Kenneth?
One Word.....TIME!
Time to pay down household debt.
Time to work through excess housing inventory.
That's it.
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