tag:blogger.com,1999:blog-2098432983500045934.post1916926343958533486..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: We see what we want to seeThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-41646304009452330972011-04-21T12:08:10.421-04:002011-04-21T12:08:10.421-04:00I should add -- if we restore the distribution of ...I should add -- if we restore the distribution of income to something like it was <a href="http://newarthurianeconomics.blogspot.com/2010/06/keynesreagan-shift.html" rel="nofollow">before the late 1970s</a>, that would greatly simplify the problem of reducing debt. That is an integral part of any plan to reduce debt without reducing living standards, for sure!The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-88258281666790505812011-04-19T17:55:31.410-04:002011-04-19T17:55:31.410-04:00Good timing, JzB! My noon-time post presents my ex...Good timing, JzB! My noon-time post presents my explanation of the growth of debt.<br /><br />I <a href="http://newarthurianeconomics.blogspot.com/2011/04/character.html" rel="nofollow">agree</a> that "Private debt is high because wages have stagnated for the last 40 years, while people have continued to want stuff. We have always expected our standard of living to rise in this country..."<br /><br />And I have no reason to doubt that "every penny of economic growth over the period has gone to the top," but I have not studied it.<br /><br />Oh! Your link in that last part is the first post of yours that I read. I especially liked your "afterthought" about the "ratio of ratios". Not afraid to talk about math a bit, I thought.<br /><br />Wage stagnation no doubt contributed to the increase in personal indebtedness. Probably not so much for financial business, non-financial business, and government debt however. (I refer you to this <a href="http://www.contrahour.com/.a/6a00d8341d7ef253ef010536ecdd7c970b-pi" rel="nofollow">graph</a> from an old <a href="http://seekingalpha.com/article/116929-u-s-domestic-debt-what-can-be-expanded-what-must-be-reduced" rel="nofollow">post</a> by Contrahour at Seeking Alpha.)<br /><br />I like to say that the concentration of income is a <a href="http://newarthurianeconomics.blogspot.com/2010/04/policy-is-key.html" rel="nofollow">policy</a> of Reaganomics.<br /><br />I also <a href="http://newarthurianeconomics.blogspot.com/2011/03/unfair.html" rel="nofollow">point out</a> that income cannot concentrate beyond 100% -- and therefore, the policy is unsustainable. So it is bad policy.<br /><br />I do not base my argument on "concentration of income" because I think this argument is easily undermined by a "class warfare" rebuttal. Obviously the concentration of wealth and income has contributed to the problem. But I have pointed out that <a href="http://newarthurianeconomics.blogspot.com/2010/10/alwaysland.html" rel="nofollow">even in a state of perfect equality</a> we could see debt increase to a level that it brings the economy down.<br /><br />I try always to focus on problems that I think conservatives and liberals alike can agree on.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-56441811612056784402011-04-19T11:11:51.061-04:002011-04-19T11:11:51.061-04:00I'm a bit sleep deprived, but here's a tho...I'm a bit sleep deprived, but here's a thought anyway.<br /><br />Private debt is high because wages have stagnated for the last 40 years, while people have continued to want stuff. We have always expected our standard of living to rise in this country, but <a href="http://jazzbumpa.blogspot.com/2011/03/presimetrics-and-great-stagnation.html" rel="nofollow">every penny of economic growth over the period has gone to the top</a>.<br /><br />So we peons have debt-financed our illusion of prosperity. And it ll went to hell when the housing bubble burst.<br /><br />What do think about this idea? If I'm close to right, what does it suggest about solutions?<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.com