Via Yglesias: Michael Mandel has up some slides about the US economy ca. ’97-’07 — popularly seen as a period of growth. The gist: wage gains were functionally zilch (duh), as were gains of capital (um…what?). If neither labor nor capital has anything of real value to show for this, it’s like a ton of money just vanished!
As we now know, this is because debt was treated as an investment rather than an annoyance to be dealt with ASAP. I’d be lying if I said I wasn’t curious what Yglesias and his peers think about false growth as a general economics concept.
(cross-posted to FreedomDemocrats)