Only a thought here:
There is not enough demand in this economy, and there was a time when progressives called on the government to help supply it.
Err, increasing demand in the economy. As far as I remember there\’s really only one way the Govt can do this. Defecit spending. Is that really what progressives in the US should be calling for? More defecits?
Price = Demand / Supply.
Lower the price to increase the demand.
Do you mean the real balance effect?
yes the dems are for balancing the budget by raising taxes
the fact that will produce a recession is not mentioned by the democrats
Well – there’s a lot of history there – Reaganomics; Roosevelt; etc etc.
Deficit spending is the usual US cure-all. But Bush has been doing it for a long time now, it will no longer work. Plus – much of the defense spending was creating demand, but I guess that iraq sucks in a lot of the defense budget rather than R&D and production of new missiles or abrahams tanks.
They’re letting the dollar slide too which I guess will choke off cheaper imports a bit, but will consumers be better off in terms of real prices and income with US manufactured goods?