Jim, this is political.
US businesses want the specter raised by Obama’s election (a mobilized public, rationally interested in basic principles of social justice) fully vanquished before they accept a greater government role in the management of the economy. Yes I agree that US business does not and should not have much too fear in the way of price increases of inputs (but don’t forget the commodity inflation that results from Western growth coupled with Asian growth) or an intrusive government (Obama is not in fact Robin Hood or a black reparationist), but many US businessmen do seem to be worried about such effects from greater autonomous government expenditures (especially if they are successful) and seem to be willing to sacrifice a few bucks in their pockets to keep these fears at bay. And, as you say, whatever money they lose they will try to make up negotiating long-term contracts. I am not sure what your last point is, but it reads as if you are blaming monetary expansion for overcapacity. Why was there “excessive private debt”? What does excessive mean? When talking about protectionism, I had that Lazy Boy vs. China story in mind.
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