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Morici lays out the causes of America's economic stagnation
In a pithy paragraph from his July 16 commentary (Easy money is the opiate of the American economy), U. of Maryland economist Peter Morici nailed the causes of the great depression which, unaddressed, are causing America's current economic stagnation. The causes are:
Morici's main point in the article is that the monetary growth "solution" being tried by the Fed cannot go on forever. He predicts eventual disaster:
The causes of the recession and economic stagnation are clear to Morici and to us. Unfortunately, those with power in Washington still appear to be clueless.
Comment by M, 8/2/2013:
One cause is missing from the list. A broken political system.
Those in Washington are not clueless, it's just an act. Like the Caveman character from SNL.."Ladies and gentlemen of the City Council, I'm just a caveman... Your world frightens and confuses me. When I see your tall buildings and flashing neon signs...."
The current system appears to work very well for the Federal Government, The Federal Reserve, and multi-national corporations.
Journal of Economic Literature:
Atlantic Economic Journal: