Wednesday, March 31, 2021

Mason's # 9: Aggregate Demand is Chronically Weak

Mason needs to get out more.

Amazon. Is. All. Demand. That's their business.

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I learned from Chris Fawson (a friend from Utah State) to always check arguments for asymmetry. If someone is going to say one thing on one side of the argument, without admitting the opposite will generally happen on the opposite side, you should be suspicious of them.

So consider 2 alternatives: AD is perpetually being pushed to the right, or AD is being perpetually pushed to the left.

In the first case, the side effect should be inflation. In the second it should be deflation.

If Mason is right ... where's the deflation?

If Mason is right ... and we push AD hard right, is he expecting inflation?

No to both: Mason's position instead seems to be that inflation is disconnected from AD on both ends. How so?? 

No, really, which point of his argument explains that?

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