Wednesday, August 17, 2011

"It's the Aggregate Demand, Stupid!"

Conservative economics consultant Bruce Bartlett (he worked as an adviser to President Reagan) offers a column in the New York Times that puts the focus on what's holding back economic recovery.  Hint - it's not businesses lacking the capital to re-invest because of high taxes, nor does it have anything to do with deficits. It's the fall in consumer demand - primarily because of high unemployment, depressed wages and the hit people took as equity in their homes disappeared due to the disaster caused by the financial sector in 2008.