[Marxism] U.S. Economic Recovery Looks Distant as Growth Stalls - NYTimes.com

Louis Proyect lnp3 at panix.com
Thu Jun 12 07:36:14 MDT 2014


On 6/12/14 9:24 AM, Louis Proyect via Marxism wrote:
> WASHINGTON — Recessions are always painful, but the Great Recession that
> ran from late 2007 to the middle of 2009 may have inflicted a new kind
> of pain: an era of slower growth.
>
> It has been five years since the official end of that severe economic
> downturn. The nation’s total annual output has moved substantially above
> the prerecession peak, but economic growth has averaged only about 2
> percent a year, well below its historical average. Household incomes
> continue to stagnate, and millions of Americans still can’t find jobs.
> And a growing number of experts see evidence that the economy will never
> rebound completely.
>
> full:
> http://www.nytimes.com/2014/06/12/business/economy/us-economic-recovery-looks-distant-as-growth-lingers.html
>

Just noticed a glaring analytical error in the final paragraphs of this 
article:

During the 1930s, many economists predicted that growth would not resume 
its earlier pace. Alvin Hansen, a Harvard University professor, coined 
the term “secular stagnation” to describe his view that changed 
circumstances, including a lower birthrate, would prevent a full recovery.

Mr. Hansen was spectacularly wrong. After World War II, the number of 
babies boomed — and so did the economy.

---

In fact it was WWII that was responsible for the boom. The postwar 
recovery would have not been possible without the military Keynesianism.




More information about the Marxism mailing list