May 30

Foreign Trade is not Tit for Tat!

By Wade Jacoby, WAPO ” In Germany’s case, a host of labor market, pension, public investment and fiscal policy changes have helped lower the share of national income that goes to labor. This put far more money in the hands of those who save rather than spend. As a result, German domestic consumption has necessarily grown much more slowly than has national income, and lower consumption, by definition, has meant greater savings.” Why is this a problem for the United States. Continue Reading (P.S. 45 will never be able to grasp the complexities of this article, let alone foreign trade, sigh…)