US Economics

US Economics Weekly
22 August, 2011

Deficit in demand to hinder economy for years

Much more important than whether or not the US economy contracts for one quarter or more is that a fundamental deficit in demand means there is little prospect of a significant and sustained acceleration in economic growth in the next year or two. The money is there to be spent, it’s just that businesses are unwilling to put it to use and households are unable to get their hands on it....

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