Comments on: On secular stagnation http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/ Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Anonymous http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-954 Tue, 31 Dec 2013 23:12:16 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-954 We need to thank Mr. Summers for advancing the theme of “secular” tendencies in capitalism. Once we begin to think outside the framework of business cycles, we can focus our attention on the long-term, historical tendencies in the development of capitalism — if such there be.
One of the first questions that must be addressed has to do with the timeline of our economic system. Is capitalism esentially self-correcting (with or without governmental interventions) and therefore timeless? Or is it time-delimited — essentially a part of the historical development of civilization? If it has not always existed, it must have a birth — perhaps even a demise. Some of you can see where this is headed — to Marx.
At a time like this it would be a good idea for many of us to get back to that unfinished business of taking a closer look at what Marx had to say.

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By: brotherkenny4 http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-951 Wed, 18 Dec 2013 20:30:16 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-951 You thought you needed to be as harsh as the Japanese were to their people. But even in Japan, you can see the balking at the severity of human treatment. It started in the Reagan years here. Tough love and all that stupid BS. “We beat you because we love you”. Oh yes, we all fell for that. You are cruel masters who allow no joy. You beat the masses about the head with fear and shame on a daily basis. You are now the old soviet union and will soon be the middle east, more like Iraq. Liberty and Justice for all is known to be a joke, dummies. Just because you can force someone to publicly state what you want them to say doesn’t mean they truly agree. You can find a few house slaves that will spy on the others, but you are despised by all and hated by most. In other words, you have been so cruel that you have demotivated the entire nation. Only the greedy are on your side.

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By: AlkalineState http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-947 Wed, 18 Dec 2013 00:25:52 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-947 Raise the import tariffs in America back to 20%. That’s what we have historically charged, and what China still charges us. No reason we should be giving away access to our markets at the current 1.5% tariff we have slipped to.

This lop-sided arrangement serves multi-national retail business interests, but does not serve American industrial interests.

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By: baroque-quest http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-946 Wed, 18 Dec 2013 00:22:29 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-946 Change “eventually factories emptied” to “eventually warehouses emptied.”

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By: baroque-quest http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-945 Wed, 18 Dec 2013 00:19:11 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-945 “the American and global economies could not rely on normal market mechanisms to assure full employment and strong growth without sustained unconventional policy support”

Larry and the Rubin gang still does not get it. “Normal market mechanisms” worked like this: a downturn happened, people were laid-off, eventually factories emptied, factories started hiring again, those employees started buying products again, and the downturn ended.

Now the same thing occurs, but all of the hiring is done in Chinese, Indian, Vietnamese, and other foreign factories. Why would the downturn ever end in the West?

To add to that, economic geniuses like Larry demand that hundreds of thousands of foreigners, mainly Indians, be imported to replace American workers under the guise of H-1B and other visa fictions, yet somehow claim this will create jobs even though historical evidence has proven that their premise is faulty.

And China has used our money wisely, buying naval vessels and other weapons of war so it can keep its status quo.

Larry and Tim “bankers need love too” Geithner gave away many hundreds of billions of dollars to their friends on Wall Street, money that could have been used to save middle class jobs or rebuild infrastructure.

Historians will look back at the period between the start of Reagan’s terms and not that many years from now as the era in which the West voluntarily relinquished its freedom.

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By: OUTPOST2012.NET http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-944 Tue, 17 Dec 2013 17:07:42 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-944 I will better wait for part#2 before making any comment.
However, it really a big breakthrough that MSM sources can assume now that we might living in the changed economy. And the cherished cycles’ theory (the whole economic science) may not applicable any longer.

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By: reality-again http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-943 Tue, 17 Dec 2013 14:54:44 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-943 Sustained unconventional policy is not sustainable –

The demand side in Western economies is weak for a reason, and it’s one that takes decades to deal with: changed demographics and lost competitiveness. These two mega trends lead to lower wages and a reduced propensity to consume goods and services.

Over stimulating demand by cheap credit and by consumption beyond what households could afford proved to be devastating, and over stimulation by the brute force of the Fed’s printing press doesn’t work, and we’re beginning to see how severe its side effects are.

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By: BidnisMan http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-942 Tue, 17 Dec 2013 08:59:29 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-942 Interest rates are always a zero sum game. Even foreign interest earned or paid equalizes via supply and demand in currency rate changes. So fiddling with rates up or down is unlikely to ever do much more than steal from Peter to pay Paul. Real changes could include constitutionally limiting fractional lending, allowing states full control over immigration and labour laws, death taxes approaching 100% for amounts over 5 million.

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By: abnewallo http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-941 Tue, 17 Dec 2013 04:18:23 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-941 It is not real employment if not dictated by “normal market mechanisms”, and it is not real growth if driven by “unconventional policy support”.

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By: Bob9999 http://blogs.reuters.com/lawrencesummers/2013/12/16/on-secular-stagnation/#comment-940 Mon, 16 Dec 2013 20:47:26 +0000 http://blogs.reuters.com/lawrencesummers/?p=391#comment-940 This piece seems to be a continuation of Mr. Summers’ recent comment, “Suppose then that the short term real interest rate that was consistent with full employment had fallen to negative two or negative three percent….” The idea that it would take negative interest to achieve full unemployment, combined with the comparison to Japan during the 1990s, suggests that what we are succeeding in doing today is fighting off deflation — but not much else.

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