Tag Archives: Economic growth

On Saving the Economy: Plan B






The antidote to a troubled macro environment since Keynes wrote the book in the 1930s Depression has been the dual demand-side sledgehammers of government deficit spending and monetary expansion. This has been Plan A to address a beleaguered economy and other things needing fixes. Having not worked miracles, governments at all levels across the globe are on to Plan B. Continue reading

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Economic Direction as Seen Below the Radar






The economy has been in a growth rut for six years with one large shock after another. But there is also a cyclical component to GDP growth that lives a life of its own and can drive an economy. The very low levels of plant and equipment spending since the tech boom of the 1990s leaves the US with aging physical plant and rising labor costs. This should stimulate business capital investment and keep the cyclical ball rolling but at reduced profit margins and a tinge of inflationary pressure. Continue reading

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Regulation, Gravity and The “Isms”: The Education of a President

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This week, President Obama unveiled his proposals to enhance economic growth, create quality jobs, and create fairness in income distribution an approach he calls growing from the “middle out.” His plans call for income redistribution under the guise of income “fairness” that might reduce differences in income but at a cost of lower income for all. These lessons of the “isms” were learned centuries ago and relearned after the Great Depression but seemly must be relearned again. This will be an expensive education of a President. Continue reading

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