Page 7 - Aggregate Demand News Today

Why? because interest rates were artificially low. it made sense for companies to borrow, accumulate cash and pay back and share. you need that incentive to go down. secondly, you need them to have more confidence about aggregate demand. >> greg, did you have trouble finding risks? what did you think about the forecasts about his risks to the economy? >> i agree. i would say you and your invest ors would make a resolution to not get faked out by washington. we come to the precipice and we fan an...

Keith ellison, the congressmans point, which i agree with, there is some interests keeping unemployment high. >> yeah, i dont think thats quite right. the idea is basically, you know, you keep unemployment high to keep labor costs down, but the problem is the strategy is to keep unemployment high, also keep economic growth weak, so its a hugely negative game, where youre saying were going to keep a weak economy so we can depress wages and take a larger share as corporate profits. that doesnt mak...

>> yeah, i dont think thats quite right. the idea is basically, you know, you keep unemployment high to keep labor costs down, but the problem is the strategy is to keep unemployment high, also keep economic growth weak, so its a hugely negative game, where youre saying were going to keep a weak economy so we can depress wages and take a larger share as corporate profits. that doesnt make sense if you own a business or are a rich guy. it makes much more sense to look at this as an error. weve be...

Questions, but then they start to detract from the demand, napped, demand, spend, spend, spend, which is how we should get out of the recovery. so are we underinvesting in education and infrastructure? an interesting question, but theyre not core to what needs to be done to get back to default. >> but as you say spend, spend, spend, and you have all this debt that exists, people cant spend, spend, spend. with the unemployment rates, with the slow level of growth, you really cannot spend, spend, ...

Around 40%, 40, 50 years ago, mid single digits right now. what the stock market is looking at, is the government is so much in gridlock. look, the democrats hated bush tax cuts and they made them permanent and they continued the biggest stimulus program in the history of mankind, 40 cents of every day dollar we dont have. the stock market looks at that, look, free government money everywhere, low taxes, lets party and thats what the markets doing. theres no one in charge in washington d.c. abso...

We put money in those pockets of people out of work. they spend it immediately. it goes into the economy. corporations have $1 trillion of cash waiting for a smoke signal that theres going to be aggregate demand. they know the government will provide people out of work with money that theres going to be a commitment to growth and job growth. those corporations are going to release those resources and create more jobs. >> it cant be said enough. the market is worried about uncertainty now. auster...

Depends on, turning medicare into a voucher system, all of these things actually may depress consumer confidence, reduce aggregate demand, and actually slow the economy down. >> i wish you wouldnt rely on facts, sir. we learned today that jobless claims were down last week and that chrysler has achieved its best sales in five years. home sales and median home prices look to be rebounding. consumer confidence is slowly going up. perhaps mr. romney would like to take credit for all of those as wel...

Get paid more than $8 an hour? remember this is not about artificially raising the wage. congress sets the standard and small businesses and large businesses, particularly workers that have no negotiating power with a small business owner, or no negotiating power with a large business owner, only congress can provide them the aggregate demand and purchasing hower they need. >> there are obviously 18 states that are actually leading at this moment. you talk about congress setting the standard. at...

Talk to me about why now? why at this moment would be need to, as you call it, catch up to 1968? >> well, it should be clear that conservative economists and liberal economists have suggested that the number one problem with the american economy is aggregate demand. the american people are not spending, they are not buying with the moneys this they do have, enough items that keep our economy and begin to turn the wheels of our economy in a positive direction. and the only group since 2007 that h...

In an anti-democratic direction by the vacancies basically. >> its absolutely right. >> its local bank presidents essentially helping drive the policy. when ben bernanke goes to the fomc, open market committee, theyre the ones who with bernanke say, basically, to oversimplify it, were going to put more money into the economy. were going to keep thing where they are, take things out of the economy. theres been a battle in this committee brewing over whats the best path forward? >> theres definite...