Carrol Cox wrote: >> Volcker wanted standards of living to decline in order to get MORE >> growth. He had no intention at all of slowing or stopping growth. ...
raghu: > That seems a bit contradictory - how can you get more growth by > putting everyone on an austerity program? I don't think Carrol meant "everyone" here. Instead, he meant the standard of living of the working class. All else constant, falling real wages mean higher profits, which Volcker wanted. In the long run, it's hard to have GDP growth a big economy based on stagnant real wages (unless there are speculative bubbles, a lot of luxury spending, an export boom, or fiscal stimulus), but I don't think Volcker and his ilk are that far-sighted. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
