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Low Demand Causes?

 
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PostPosted: Sat Feb 20, 2016 6:53 pm    Post subject: Low Demand Causes? Reply with quote

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Yes, but why is demand too low? Perhaps, productivity gains went to regulations, taxes, and lawsuits instead of wages. Perhaps, the flood of low skilled immigrants depressed low skilled wages. Perhaps, taxes were too high, because U.S. consumers bought foreign goods and foreigners bought U.S. Treasury bonds shifting up to $800 billion a year from consumers to government. Perhaps, government created household debt through health care prices and student loans, made it harder to borrow after the financial crisis, even with lower interest rates, and created disincentives to work and take risks, e.g. to start a business.

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