supply side

Yeah I know, weird little random blog post. My aim is to clean up the meme links (Piketty, Philips curve and macro wars, German trade surplus, Floor system) and add them to the side bar.

But basically I was thinking how Democrats need to be come the force for demand side solutions. Leave the supply side to the Republcians. Education reform? Attacking the teachers unions with Campbell Brown. It was funny how she wouldn't divulge who was funding her efforts.

Universal Basic Income, NGDP level path targeting and helicopter drop versus the social democratic welfare state, unemployment and wage inflation, and money-financed government spending, what's the commonality. Conservatives like to get govenrment out of the way but economic demand stabilization is seen by most Republicun economist as the thing wedge of socialism.

Bernstein on GDP:

A potentially important development: is the improving job market helping to stabilize the labor force?

"The idea is that if greater labor demand pulls people into the labor market who are currently sitting out, that will boost GDP growth, which is roughly the sum of productivity growth plus labor force growth."

But what is productivity growth?

Another thing about the macro wars: New Keynesianism wasn't setting off alarm bells over the housing bubble and overleveraged financial sector even if people like Shiller, Rajan and Baker were. There weren't alarm bells over the shadow banking sector.