The economy is stagnating, but there is no broad agreement as to why. Democratic policy hasnâ??t worked in the last few years, but Republicans governed when the Panic and Great Recession began. Some economists say negative real interest rates inflated the bubble. Others say high interest rates precipitated the crash. Inflation, for sure, is now the key danger â?? or is it deflation? The problem is really technology: weâ??re in a four-decade innovation rut. No, comes the rebuttal, technology moves too fast for workers to keep up. For some, Keynes is back! For others, Keynes has been proven wrong â?? yet again.
Economic and political arguments arenâ??t going away. But fresh perspectives may be helpful. When I think about what the economy looks like, I start with information.
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