Has the World Run Out of Spare Capacity?

New York Times | Jan. 22, 2011 (Opinion)

Samuel Brittan points us to John Kemp suggesting that global growth is hitting supply-side limits. The argument is that while high unemployment and low inflation may prevail in advanced economies, the rest of the world is facing accelerating inflation, together with rising commodity prices. And that is, indeed, a fair picture of what’s going on.

What’s more questionable is the assertion that “The problem is not aggregate demand but its ... Full Story »

Posted by Fabrice Florin - via Paul Krugman, Umair Haque, Johan Jessen (t), Kaizar Campwala (t), John Hollis (t), Peter Avalos (t), Fabrice Florin (t), David K. Miller (t)

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Subjects: World, Business
Topics: Global Economy
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# Tweets: 1 (as of 2011-01-22)
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Posted by: Posted by Fabrice Florin - Jan 22, 2011 - 8:17 AM PST
Reviewed by: Fabrice Florin (review), Dwight Rousu (review), Kaizar Campwala (review)
Content Type: Article
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Related Comments: Global Economy (2)

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Dwight Rousu
3.2
 by Dwight Rousu - Jan. 22, 2011

The article assumes a bit of wonkishness on exchange rates to detect whether this currency exchange rate is a key point or a side point.on a larger issue. In a time when world population has already exceeded the capability of our earth ecosystem to be self sustaining, there seems to be bigger questions. Finding schemes to "grow" sounds only like helping humanity into the abyss.

The graphs seem to reflect the advanced countries outsourcing their production to emerging countries, with the attendant complications of slave and near-slave labor, lawless environmental destruction, and even greater totalitarianism than in the U.S. We need world population reduction, international labor protection, international enforced environmental laws, and a new way to measure socio-economic goodness separate from production and gross national product.

What’s more questionable is the assertion that “The problem is not aggregate demand but its distribution.” In fact, it’s both. More »

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Kaizar Campwala
3.9
 by Kaizar Campwala - Jan. 23, 2011

Krugman makes a convincing argument about the need for developing countries to appreciate their currencies.

See Full Review » (6 answers)
Fabrice Florin
3.5
 by Fabrice Florin - Jan. 22, 2011
Fabrice posted this story.
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