Five Things to Remember

  1. The stock market is not the same as the economy. When the stock market was rising, it didn’t mean the economy was good. When the stock market is falling, it doesn’t mean the economy is bad (see here)
  2. Much of the growth of the federal deficit went to fund economic growth abroad, not in the U.S.  Yes, I know that the official data shows that real imports are smaller today than when the recession started. It’s not true.
  3. The official data are wrong. Real import growth is stronger than the numbers show, productivity and real GDP growth are much weaker. (see here).
  4. The last thing the U.S. needs is another stimulus to consumption. Consumption leaks right out the door as higher imports.
  5. The U.S. should be a production economy, not a consumption economy.  It’s time to stop chasing low consumer prices and focus on investment in physical, human, and knowledge capital. That’s the only path to sustained prosperity.


  1. This libertarian agrees with you.

  2. I am a man who love to see his follow man hope.Let take love to the people.

  3. “Much of the growth of the federal deficit went to fund economic growth abroad, not in the U.S.”

    We need a bandwagon, or maybe some intelligence. Our tax cuts, in general, have been a determent.

    A note to direct consumption, higher oil prices.


  1. […] the form of human capital investment. As the economy continues to tank, let me remind pundits and economists that push for human capital investment that money […]

  2. […] that some-more taxation cuts or spending to kindle direct will indeed boost a recovery. (Mandel contends that pumping some-more income into a economy mostly helps Americans buy some-more alien goods, […]

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