tag:blogger.com,1999:blog-2098432983500045934.post1327829684093391327..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Making the Wrong ArgumentThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2098432983500045934.post-11440503727214793442010-11-27T12:09:26.858-05:002010-11-27T12:09:26.858-05:00Honestly, I think that private debt is the only th...Honestly, I think that private debt is the only thing propping us up. Where would effective demand have come from these decades without credit. I cannot even begin to imagine where the Aggregate Demand would have been without credit fueling it.<br /><br />I think this post has inspired me though to try and trace this rise in private debt. I believe that it has to do with the component of the economy that we truly ignore: Energy. Energy is basically the main component in the shift of the Aggregate Supply curve, yet it is barely studied. I have compiled the literature on this in a day.<br /><br />Another consideration for this is the distribution of wealth. Effective demand is further weakened by the concentration of wealth in the economy (or what Marx would call the paradox of capital accumulation), and therefore will require credit to keep the growth going.<br /><br />Either way, great blog.Bigvichttps://www.blogger.com/profile/14286721672498946099noreply@blogger.com