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Showing posts from March, 2017

Weak & unbalanced secular growth is the problem not bilateral trade or immigration

Global Trumpism  could have been avoided.  An economy has three broad sources of demand that enable the expansion of aggregate sales (nominal GDP) on domestically produced goods and services.* Domestic private sector (households and corporations) consumption and investment spending Public sector expenditure (which recycles income back to the non-government sectors) Foreign sector purchases (exports to foreign domiciled agents/entities) Aggregate expenditure is funded by: Domestic private sector dissavings in the form of leverage (debt issuance and/or asset sales ), equity issuance, or spending out of existing income Public sector debt issuance, asset sales, and taxes Foreign sector leverage, equity issuance, or spending out of existing income