Key Focus

  • And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
    And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts, gyms, salons, coffee shops, and tattoo parlors, as well as college tuition and doctor's visits
  • House values are now stagnant at best, and will likely fall in the months ahead.
    Mainstream economics pays little attention to such structural questions. Instead, it assumes that business investment responds mostly to the consumer, whose spending is dictated equally by income and desire. The distinction between "essential" and "superfluous" does not exist


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High Level Topics

  • SPENDING
  • SERVICES
  • ECONOMY
  • High Level Abstractions

  • SPENDING(3, 0 Order)
  • ( SPENDING )(3, 0 Order)  top
  • ( SPENDING, CONSUMER )(2, 1st Order)  top
  • ( SPENDING, INVESTMENT )(2, 1st Order)  top
  • ( SPENDING, CARS )(1, 1st Order)  top
  • ( SPENDING, SALONS )(1, 1st Order)  top
  • ( SPENDING, RESTAURANTS )(1, 1st Order)  top
  • ( SPENDING, PRESIDENT_JOHN_F )(1, 1st Order)  top
  • ( SPENDING, PENT-UP )(1, 1st Order)  top
  • ( SPENDING, PARLORS )(1, 1st Order)  top
  • SERVICES(3, 0 Order)
  • ( SERVICES )(3, 0 Order)  top
  • ( SERVICES, BUSINESSES )(3, 1st Order)  top
  • ( SERVICES, BUSINESSES, ECONOMY )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, WORKERS )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, TECHNOLOGY )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, SPENDING )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, PRESIDENT_JOHN_F )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, PENT-UP )(1, 2nd Order)  top
  • ( SERVICES, BUSINESSES, MODEL )(1, 2nd Order)  top
  • ( SERVICES, TECHNOLOGY )(2, 1st Order)  top
  • ( SERVICES, SPENDING )(2, 1st Order)  top
  • ( SERVICES, INVESTMENT )(2, 1st Order)  top
  • ( SERVICES, ECONOMY )(1, 1st Order)  top
  • ( SERVICES, CONSUMER )(1, 1st Order)  top
  • ( SERVICES, CARS )(1, 1st Order)  top
  • ( SERVICES, WORKERS )(1, 1st Order)  top
  • ECONOMY(2, 0 Order)
  • ( ECONOMY )(2, 0 Order)  top
  • References

    • ( SPENDING )  top
    • ( SPENDING, CONSUMER )  top
    • (Read more)   top And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or...
    • (Read more)   top. Instead, it assumes that business investment responds mostly to the consumer, whose spending is dictated equally by income and desire. The distinction between "essential" and "superfluous" does not exist
    • ( SPENDING, INVESTMENT )  top
    • (Read more)   topIf consumers channel their pent-up demand into new spending, this "shock-stimulus" model dictates, then businesses will revive investment, and soon enough, all will be well once again.
      This is how mainstream center-left economists and policymakers have thought about recessions and recoveries since at least the 1960s, when President John F. Kennedy and his successor, Lyndon B. Johnson,...
    • (Read more)   top. Instead, it assumes that business investment responds mostly to the consumer, whose spending is dictated equally by income and desire. The distinction between "essential" and "superfluous" does not exist
    • ( SPENDING, CARS )  top
    • (Read more)   top And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts,...
    • ( SPENDING, SALONS )  top
    • (Read more)   top
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts, gyms, salons, coffee shops, and tattoo parlors, as well as college tuition and doctor's visits.
    • ( SPENDING, RESTAURANTS )  top
    • (Read more)   top
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts, gyms, salons, coffee shops, and tattoo parlors, as well as college tuition and doctor's visits
    • ( SPENDING, PRESIDENT_JOHN_F )  top
    • (Read more)   top
      This is how mainstream center-left economists and policymakers have thought about recessions and recoveries since at least the 1960s, when President John F. Kennedy and his successor, Lyndon B. Johnson, pushed through tax cuts.
    • ( SPENDING, PENT-UP )  top
    • (Read more)   topTo get America moving again, what is mainly needed is confidence, perhaps aided by stimulus. If consumers channel their pent-up demand into new spending, this "shock-stimulus" model dictates, then businesses will revive investment, and soon enough, all will be well once again.
      This is how mainstream center-left economists and policymakers have thought about recessions...
    • ( SPENDING, PARLORS )  top
    • (Read more)   top
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts, gyms, salons, coffee shops, and tattoo parlors, as well as college tuition and doctor's visits.
    • ( SERVICES )  top
    • ( SERVICES, BUSINESSES )  top
    • ( SERVICES, BUSINESSES, ECONOMY )  top
    • (Read more)   top But it ignores three major changes in the US economy since then: globalization, the rise of services in consumption and employment, and the impact of personal and corporate debts.
      In the 1960s, the US had a balanced economy that produced goods for both businesses and households, at all levels of...
    • ( SERVICES, BUSINESSES, WORKERS )  top
    • (Read more)   top This explains why many businesses are not reopening even though they legally can. Others are reopening, but fear they cannot hold out for long. And the many millions of workers in America's vast services sector are realizing that their jobs are simply not essential.
    • ( SERVICES, BUSINESSES, TECHNOLOGY )  top
    • (Read more)   top
      In the 1960s, the US had a balanced economy that produced goods for both businesses and households, at all levels of technology, with a fairly small (and tightly regulated) financial sector.
    • ( SERVICES, BUSINESSES, SPENDING )  top
    • (Read more)   topIf consumers channel their pent-up demand into new spending, this "shock-stimulus" model dictates, then businesses will revive investment, and soon enough, all will be well once again.
      This is how mainstream center-left economists and policymakers have thought about recessions and recoveries since...
    • ( SERVICES, BUSINESSES, PRESIDENT_JOHN_F )  top
    • (Read more)   topSee ( SPENDING , PRESIDENT_JOHN_F )
    • ( SERVICES, BUSINESSES, PENT-UP )  top
    • (Read more)   topIf consumers channel their pent-up demand into new spending, this "shock-stimulus" model dictates, then businesses will revive investment, and soon enough, all will be well once again.
      This is how mainstream center-left economists and policymakers have thought about recessions...
    • ( SERVICES, BUSINESSES, MODEL )  top
    • (Read more)   topIf consumers channel their pent-up demand into new spending, this "shock-stimulus" model dictates, then businesses will revive investment, and soon enough, all will be well once again.
      This is how mainstream center-left economists and policymakers have thought about recessions and recoveries since at least the 1960s, when President John F. Kennedy...
    • ( SERVICES, TECHNOLOGY )  top
    • (Read more)   topSee ( SERVICES , BUSINESSES , TECHNOLOGY )
    • (Read more)   top
      Today, the US produces for the world, mainly advanced investment goods and services, in sectors such as aerospace, information technology, arms, oilfield services, and finance. And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas cars, televisions, and household appliances drove US consumer demand...
    • ( SERVICES, SPENDING )  top
    • (Read more)   topSee ( SERVICES , BUSINESSES , SPENDING )
    • (Read more)   top
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts, gyms, salons, coffee shops, and tattoo parlors, as well as college tuition and doctor's visits
    • ( SERVICES, INVESTMENT )  top
    • (Read more)   topSee ( SPENDING , INVESTMENT )
    • (Read more)   top
      Today, the US produces for the world, mainly advanced investment goods and services, in sectors such as aerospace, information technology, arms, oilfield services, and finance. And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas...
    • ( SERVICES, ECONOMY )  top
    • (Read more)   top ... center-left economists and policymakers have thought about recessions and recoveries since at least the 1960s, when President John F. Kennedy and his successor, Lyndon B. Johnson, pushed through tax cuts. But it ignores three major changes in the US economy since then: globalization, the rise of services in consumption and employment, and the impact of personal and corporate debts.
      In the 1960s, the US had a balanced economy that produced goods for both businesses and households, at all levels of...
    • ( SERVICES, CONSUMER )  top
    • (Read more)   top. And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or...
    • ( SERVICES, CARS )  top
    • (Read more)   top. And it imports far more consumer goods, such as clothing, electronics, cars, and car parts, than it did a half-century ago.
      And whereas cars, televisions, and household appliances drove US consumer demand in the 1960s, a much larger share of domestic spending today goes (or went) to restaurants, bars, hotels, resorts,...
    • ( SERVICES, WORKERS )  top
    • (Read more)   topSee ( SERVICES , BUSINESSES , WORKERS )
    • ( ECONOMY )  top
    • (Read more)   topThe Illusion of a Rapid US Recovery Jun 9, 2020 JAMES K. GALBRAITH America's economy - based on global demand for advanced goods, consumer demand for frills, and ever-growing household and business debts - was in many ways prosperous
    • (Read more)   top ... center-left economists and policymakers have thought about recessions and recoveries since at least the 1960s, when President John F. Kennedy and his successor, Lyndon B. Johnson, pushed through tax cuts. But it ignores three major changes in the US economy since then: globalization, the rise of services in consumption and employment, and the impact of personal and corporate debts. In the 1960s, the US had a balanced economy that produced goods for both businesses and households, at all levels...