kruggles drops the butlers tray

mr Khere comes "....a return of the “secular stagnation” hypothesis that was popular in the early postwar years "

"the hypothesis....a fundamental excess of desired savings over desired investment
 requiring government intervention on a sustained basis to achieve full employment."


" hypothesis proved wrong at the time"

"....I have a problem with an underconsumptionist story
 depends  on the notion that rising inequality has led to rising savings.
 And you just don’t see that. Here’s private saving as a share of GDP:

"Obviously it jumped up after the housing bust, but until then it was actually declining, and even now it’s below historic highs. I just don’t see how to make the underconsumption story work."

see if the usury system transfers the excess savings of our rich hoouseholds to the rest of nation's households ......consumption holds up just fine ...so lng as the debt service and collateral hold up ...

well after the lot bubble burst we still had our human capital...right ??
but what if the earnings of that human capital are off
what if our laboring services just took a market value hit ??

try the  resultant undercompensated story  on for size

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part II

"  the trade deficit. America in the 70s and 80s could have
 high savings,(and HIGH HOUSEHOLD  BORROWING PK)
not hugely strong investment,
 but still have full employment " ???

"... trade deficits weren’t as large compared with the economy as they are now."

And this in turn means that
" the savings glut .. is actually originating abroad, not at home."