Monday, November 18, 2013

Can Yglesias find the cause of our Stagnitis?

The Secular Stagnation Puzzle Restated
The puzzle is: Why would this be? If the economy is allegedly supply constrained, then where's the inflation? Why do you get bubbles before you get full employment? In particular, while there are lots of problems you can easily imagine arising from a slowdown in technological growth (slowdown in wage growth, slowdown in GDP growth), it's difficult to see why this particular thing would happen.

Answer? Inability of government, state and federal, to handle the growth of the three large sun belt states. Mal-proportionality in the Senate and, in the State governments; they do not match with the House.
Solution:

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