Re: RE: Re: Re: Re: Re: the profit rate & recession

[Doug Henwood <dhenwood@xxxxxxxxx>]

Devine, James wrote:

> Hasn't he also said that consumer spending is what's been holding up the
> U.S. economy? My point -- and that of Godley & Izureta, who also go beyond
> surface appearances to think about the determinants of private-sector
> spending -- is that this prop can't last. Similarly, England's economy is
> doing well in the current world recession due to the role of consumption --
> but this can't last.

You may be right. But I've heard this line many times before. Godley
also said some dire things about the UK a decade ago, and the UK did
get a big recession, but it recovered and expanded. As Wall Street
permabear James Grant once had to concede, over the long term, the
bulls do have a point.

Doug