Bite Size Economics No.28
'Too often economic analysis conflates aggregated demand with effect demand'.
There's lots of talk of 'demand' in economics, but this is often presented as a society wide total needing to be increased. But, the rich spend their money differently (see BSE 5) & so JM Keynes stressed what was actually needed was 'effective demand'.
If you want to increase demand money needs to get into the hands of those who spend it quickly/everyday.
Replying to @ChrisMayLA6@mastodon.me.uk
@ChrisMayLA6 Failure to understand social distribution of effective demand is rhe post-2008 tragedy.
Low-interest after the 2008 crash and resulting possibility of quantitative easing ( #QE) could have been used both as helicopter money and for wage-intensive public investment such as houses. The UK housing crisis could have been eliminated, with huge consequential gains.
But the LibDem breakthrough coincided with -#OrangeBook #neoliberalism, and Clegg missed the moment.:An epochal failure.