In
2014, the world economy remained stuck in the same rut that it has been
in since emerging from the 2008 global financial crisis. Despite
seemingly strong government action in Europe and the United States, both
economies suffered deep and prolonged downturns.
The gap between where
they are and where they most likely would have been had the crisis not
erupted is huge. In Europe, it increased over the course of the year.
Developing
countries fared better, but even there the news was grim. The most
successful of these economies, having based their growth on exports,
continued to expand in the wake of the financial crisis, even as their
export markets struggled. But their performance, too, began to diminish
significantly in 2014.
In
1992, Bill Clinton based his successful campaign for the US presidency
on a simple slogan: “It’s the economy, stupid.” From today’s
perspective, things then do not seem so bad; the typical American
household’s income is now lower. But we can take inspiration from
Clinton’s effort.
The malaise afflicting today’s global economy might be
best reflected in two simple slogans: “It’s the politics, stupid” and
“Demand, demand, demand.”
Read more: The Politics Of Economic Stupidity
