Saturday, June 19, 2010

Microeconomic and Macroeconomic Excess Supply - Grasping Reality with Both Hands

A Macroeconomic explanation for what we already knew. We are in a downward wage and price deflationary spiral. There is an excess supply of goods and labor and low demand from consumers (who are broke) and employers (who are trying to maintain profits). Economic equilibrium looks more like entropy to me.

[via Yglesias]