dan ryan

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There has been a lot of talk around whether the second half of 2010 puts the U.S. back into recession. It seems that this will not be the case from a strict GDP standpoint but it certainly is from an employment standpoint. I am afraid that we all have lost sight of the importance of employment is and how its affects aggregate demand. We have a significant aggregate demand problem. Have we lost sight of the fact that if we continue to depress wages in order to raise profits (or even in many businesses, simply to stay afloat) that has significant downward pressure on all levels of prices. The spiraling effect simply cannot be left to the market to work itself out. It is so very alarming that we continue to follow the economic policies of Hoover and Carnegie and do not see how disastrous those were.  We also seem to be pushing to follow FDR ill-advised skew tightening that in large part muted the recovery in 1937. Why? Why do we pretend that macro-economics is the same as a personal check