0 sats \ 0 replies \ @TomK OP 1 Aug \ parent \ on: Japan Faces Economic Crossroads as Industrial Output Plummets econ
Better is, if you want an economy to grow, you have to expand its production capacities, i.e. capital. this is done via a savings rate and not via credit-financed government spending programs. the approach that wages must first rise or consumption should grow in order to stimulate the economy is pure Keynesianism and unfortunately that is not how economics works.