Hillary Clinton Wants To Bring Back The ’90s Economy. Here’s What She’s Missing.
From Huffington Post. Seriously though, if there is anything that is really missing, it’s that a lot of the economic growth was supported by the households remaining highly indebted and consuming instead of paying down the debt. The St. Louis Fed knows what’s missing.
Take a look at the period from 1990-2000. Household debt remained steady which means households were not reducing their debt burden but spending what came their way resulting in the economy finding opportunities to grow.
If you’re unconvinced, answer this. Would a company choose to expand in an economy where there is weak demand?
Households right now are deleveraging (it seems to be tapering off) and seems unlikely that that the economic performance of the 1990s will return as promised.
Oh politicians (also economists).