Re: What went right?

[Doug Henwood]

Michael Perelman wrote:

>I would like to start a dialogue on why the (U.S.) economy has been
>doing as well as it has over the past few years.  We know about the
>problems, inequities ...., but why has the house of cards stayed up as
>long as it has.

Hey, how about this - taxing the rich reduced the budget deficit, allowing
interest rates to fall (take that, Keynesians!), but without compromising
aggregate demand. The reduction in interest rates explains a lot of the
rise in corp profits, which has sustained investment.

I've been away for a few days, so I don't know what anyone else said yet.

Doug