Comment Re:citation needed (Score 1) 425
Here is an essay where Krugman takes a liberal reporter to task for misunderstanding and opposing globalization.
Not sure if I'm missing something here. Sounds like an over-simplification. From the article:
But wait--what entitles me to assume that consumer demand will rise enough to absorb all the additional production? One good answer is: Why not? If production were to double, and all that production were to be sold, then total income would double too; so why wouldn't consumption double? That is, why should there be a shortfall in consumption merely because the economy produces more?
How can it be conveniently assumed that all the production were to be sold?
