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Nice Try David


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2014 Aug 8, 8:44am   2,776 views  4 comments

by mell   ➕follow (9)   💰tip   ignore  

http://market-ticker.org/akcs-www?post=229277

Monetary central planning is failing to achieve Keynesian “escape velocity” because it has deeply impaired the engines of capitalist enterprise. Nowhere is this more apparent than in the grotesque financialization of American business that has occurred since the 1980s. As usual, this deformation is rooted in the massive growth of debt carried by non-financial businesses. As shown below, non-financial business debt (corporate and non-corporate) has increased by nearly 8X since 1982 or at almost double the growth rate of GDP. Accordingly, the ratio of total business debt to GDP has risen from 53% to 81% over the last 32 years.

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1   mell   2014 Aug 8, 8:44am  

"Keynesian economics as practiced is an open fraud, in that Keynes mandated surpluses and paid-down debt during boom times. That has never occurred during an economic cycle in this so-called "model" in the real world.

Not once."

2   indigenous   2014 Aug 8, 3:51pm  

What is this guys complaint? Is he saying that Stockman is defending Keynesian economics, that Stockman did not indicate that debt had grown by 8x ?

3   mell   2014 Aug 8, 4:00pm  

indigenous says

What is this guys complaint? Is he saying that Stockman is defending Keynesian economics, that Stockman did not indicate that debt had grown by 8x ?

No, I think he is giving Stockman a hard time for not mentioning the disproportionally high expansion of federal debt, which he believes is the much bigger problem compared to the non-financial business debt (which expanded on a much smaller scale).

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