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© 2020 Relevant Protocols Inc.
A focused study group for the discussion of economics and economic policy.
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© 2020 Relevant Protocols Inc.
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This piece on inflation gets it exactly right: the problem we need to be addressing - in both the short term and long term - is not excessive growth in demand, but sluggish growth in supply.
This piece on inflation gets it exactly right: the problem we need to be addressing - in both the short term and long term - is not excessive growth in demand, but sluggish growth in supply.
Those voices should consider what John Maynard Keynes said in a 1933 letter to President Franklin D. Roosevelt during the worst year of the Great Depression. First, he argued, the president should boost consumer spending and convince businesses to get back to what they do best: making and selling things. Then, once things were up and running again, he could pursue economic reform to fix the systemic problems preventing the economy from meeting its potential. Then, as now, many conflated the ideas of “economic recovery” and “economic reform.” The purpose of economic recovery is to spend to prevent a crisis from spiraling. The purpose of reform is to spend so that we do not have these problems in the first place.
Those voices should consider what John Maynard Keynes said in a 1933 letter to President Franklin D. Roosevelt during the worst year of the Great Depression. First, he argued, the president should boost consumer spending and convince businesses to get back to what they do best: making and selling things. Then, once things were up and running again, he could pursue economic reform to fix the systemic problems preventing the economy from meeting its potential. Then, as now, many conflated the ideas of “economic recovery” and “economic reform.” The purpose of economic recovery is to spend to prevent a crisis from spiraling. The purpose of reform is to spend so that we do not have these problems in the first place.
As President Joe Biden’s administration and its progressive allies push to pass an ambitious social spending bill, moderate Democrats are worried. They point to rising prices and postulate that we are facing an era of high inflation. Wouldn’t more spending after an already large pandemic stimulus make matters worse?
As President Joe Biden’s administration and its progressive allies push to pass an ambitious social spending bill, moderate Democrats are worried. They point to rising prices and postulate that we are facing an era of high inflation. Wouldn’t more spending after an already large pandemic stimulus make matters worse?
"The American economy is facing inflationary pressures not because of too much government spending but because, for almost two decades, there has not been enough."
"The American economy is facing inflationary pressures not because of too much government spending but because, for almost two decades, there has not been enough."
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