July 20, 2011
Can Increased Demand Save the Economy?
Progressive economists have been bewailing the slowdown in demand since soon after the onset of the recession. According to these economists, low demand is what ails the American economy, and the only cure is for the federal government to spend trillions of borrowed or newly printed dollars to spur demand, which will boost employment and turn the economy around. That's the theory, anyway. It's the progressives' answer to supply-side economics, a.k.a. Reaganomics: Just get demand up and everything will be fine -- the workingman will get work, the American businessman will get business, and the progressive economists will get vindication for their theories. Economist Robert Reich writes: All this translates into a continuing crisis on the demand side. Consumers can't and won't buy more. Between January and March, sales grew just .15 percent around the country -- perilously close to no growth at all. May sales look even worse. Chain stores are reporting weaker...(Read Full Article)