Please read this long article about the shortage of demand. It puts into clear language the problems that cause a weak economy, and few ways to bring supply and demand back into balance. "For an economy to be at full employment, demand needs to equal the society’s productive capacity. If it does not, then supply will shrink to meet demand and millions of workers will become redundant. To achieve full employment, we must find a way to instead push demand up to meet the economy’s productive capacity. Since the Great Depression, we have solved this problem of demand three different ways: war, rising wages, and debt."
Posted on: Tue, 08 Oct 2013 14:45:15 +0000
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