Who's to blame for the slow recovery?

[Gonzo Rodeo]

An increase in savings does not create an increase in investment.

If investment is counted as consumption, then the portion of savings that people hoard and do not consume are then diluted through monetized deficit spending, which does, in fact, reduce the value of hoarded money and reduces future spending, every bit as much as it reduces the real value of held debt. Deficit spending does not create wealth, by any primary, secondary, or even tertiary means; it only moves wealth from one place to another. Ricardian Equivalence is not worthless, just like the standard model is still valid even though it doesn't work at the quantum level.

I've spent my entire time in this thread driving to the point that the profit motive for people to produce can be messed with in several different ways. Many people I have argued with in this thread, including you, have even agreed that the profit motive is important to the producer, which is why demand has to exist (otherwise, how can one profit?). But when I point out that things like taxes and deficits affect this profit motive by reducing the final amount transferred to the producer, you all collectively lose your goddamn minds.

 

[Kushinator]

If investment is counted as consumption, then the portion of savings that people hoard and do not consume are then diluted through monetized deficit spending, which does, in fact, reduce the value of hoarded money and reduces future spending, every bit as much as it reduces the real value of held debt.

Monetized deficit spending doesn't dilute savings through inflation. Inflation is not a function of deficit spending.

Deficit spending does not create wealth, by any primary, secondary, or even tertiary means; it only moves wealth from one place to another.

Agreed. The economy stalled for the reason money must be moved.

Ricardian Equivalence is not worthless, just like the standard model is still valid even though it doesn't work at the quantum level.

There isn't an empirical foundation for the RE.

I've spent my entire time in this thread driving to the point that the profit motive for people to produce can be messed with in several different ways. Many people I have argued with in this thread, including you, have even agreed that the profit motive is important to the producer, which is why demand has to exist (otherwise, how can one profit?). But when I point out that things like taxes and deficits affect this profit motive by reducing the final amount transferred to the producer, you all collectively lose your goddamn minds.

Classical economics has been abandoned for a reason.

 

[bluesmoke]

Why is recovery taking so long—and who’s to blame? | Economic Policy Institute

I realize few people around here will let Economists explain the economy to them, but I keep trying. Surprise surprise! Austerity is what has caused our recovery to take as long as it has.

Yo. A little late to be as effective as to begin with. Obama wanted more at the start, but couldn't get it because Democrats had no sense of positive momentum in support of their leader. The errant sense of austerity compromised what could have been a full recovery into this plateaued slow recovery. Then the Rep. Congress wouldn't even let any of Obama's economic proposal's come to Committee, which MSM did not deem newsworthy.