I found this Post which I do not believe at all, though I am great distance from doubting either the information or the integrity of it. I know there is not disinflation, but how do you explain the hidden inflation? This is the real problem! I know, as should every economist, that we will have to endure a burst of inflation prior to a return to normal Production; people simply cannot return to a normal purchase pattern without such a burst. What the second graph in the Post needs is an expression of the line of production since the Recession began; not in monetary terms, but in real production of physical units. It would also be indicative if there was a red line expressing where Production would have to be to maintain a previous Consumption pattern from prior to the Recession. My contention is that to get from the current Production line to the red line of necessary production would require a high level of consistent inflation.
I read successive reports like this one, which all say the same thing, and repeat the same formulas for the advance of education. The trouble comes in the fact that none of the suggestions will actually affect the outcome. One of the real problems lie in the insistence that the educated bear the cost of his education, rather than the business and institutions which actually benefit from the Skill-levels acquired. It would make far more sense to tax such entities for every hour of Skill level labor they receive, while receipt of such funds would require acceptance of a mandated Wage level for academics; this later ensuring that there would be a Union-style Wage negotiations between Government and academics. Students would be able to avoid extreme Expenses when they are in a low-Income generating class. Businesses could assure themselves of a consistent supply of skilled labor, while paying a probable lower educational cost in the long-run. Educators could be assured of a consistent Living Wage, while the Wage differentials could be minimized; so that the extreme jealousy of Tenure and Placement could be reduced.
It shows the respect I have for David Beckworth because of the degree with which I agree with him, even though I feel that he is far too conservative for me. This Post is a prime example, as it explains exactly what caused the Recession. The reasons cited for the Recession are exactly what did cause the Recession, and central banks and monetary policy has did little to correct any of the conditions. I wish David would come up with some practical suggestions for correcting the current mess, and start a discussion thereby where some understanding could be reached. I would supply some such rationale, but it is too likely to be dismissed. lgl