Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Tuesday, October 28, 2014

Secular Stagnation

http://www.vox.com/2014/10/28/7078167/secular-stagnation

Also known as "demand-side economics"...

I would add that I don't think we fully account for the effect of high energy costs on economic growth.  While producing more supplies (like the shale gas boom in North Dakota) can stimulate local economies, ultimately the demand side of the economy is hurt by taking a significant amount of people's income and lighting it on fire to produce energy.

The current collapse in oil prices could be a very strong predictor of better economic growth.

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