Question
Expound on this quote.The economy may easily slow down in the next couple years, if not enter into a recession. The reason is that there
Expound on this quote."The economy may easily slow down in the next couple years, if not enter into a recession. The reason is that there are a few optimistic factors, but there also are a few pessimistic ones.Among the positive variables are expansionary monetary policy, strengthening of banks, such as the increased capital requirements, improvement of the firms' balance sheets, i.e., increase of cash holdings and general improvement of the mood of society. However, there are three key weaknesses. One is the high levels and ratios of debt for businesses, households and governments. The second is the woeful investment in infrastructure of all sorts, which has occurred in the last three decades. The third is the increase in the last three decades in inequality of income and wealth, which makes the masses, poor and lower middle income people, to lose substantial buying power
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