Reserve army and relative surplus population as causes imply underconsumption . 
Trotskyists are gonna get you (smiles). 



> On Aug 25, 2015, at 12:56 AM, Eugene Coyle <[email protected]> wrote:
> 
> Krugman's August 24, 2015 column in NYTimes --    
> 
> http://www.nytimes.com/2015/08/24/opinion/a-moveable-glut.html?action=click&pgtype=Homepage&module=opinion-c-col-left-region&region=opinion-c-col-left-region&WT.nav=opinion-c-col-left-region
> 
> In clinging to his simple Keynesianism -- Krugman seems bewildered.    He's 
> embraced Bernanke's idea of a "global savings glut" sloshing around the world 
> making waves like Governor Christie cannonballing into a swimming pool.  At 
> least he's anti-austerity but he says in a pathetic insertion:  "Population 
> growth is slowing worldwide, ... " -- an excuse popular in the 1930s when 
> nothing else served.
> 
> And, the end of the same sentence:    " ... and for all the hype about the 
> latest technology, it doesn’t seem to be creating either surging productivity 
> or a lot of demand for business investment."
> 
> Why would business rush to add the latest labor-reducing technology when they 
> can get all the labor wanted very cheaply?
> 
> Krugman has defined the framework of secular stagnation and refuses to say 
> the name.
> 
> Again, Krugman advocates more public spending on good things like 
> infrastructure, borrowing cheaply to do it.  Fine for all that but it is sad 
> that the NYTimes Nobelist hasn't got a clue about WHY this is happening.  Nor 
> have I seen anything on "the left" that explains what is going on either.
> 
> Here's a hint:  The biggest "global glut" is the reserve army of the 
> un-employed.  Until a policy is adopted to deal with that we are condemned to 
> listen to Bernanke, Krugman, Robert Reich and the rest.  At least the 
> despicable Larry Summers sees the problem.  Go with Pope Francis:  cut the 
> USA work week to four days WITH NO CUT IN PAY.  A massive redistribution of 
> income within the North, and also between the North and South.
> 
> Gene
> 
> 
> 
> ___________________________________
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