In A Real Economy, There Is No Walmart

Buying cheap junk from factory slaves in the Third World and selling it to jobless "consumers", brokering the difference with debt.

MW: April 1, 2015: 

Larry Summers and Ben Bernanke debate the best way to apply Ponzinomics

One dunce asserts that the U.S. is in a secular stagnation caused by zero interest rates - a problem that can only be resolved with more government spending. This is the Paul Krugman view that 35 years of government deficits can be fixed with even larger government deficits. A counter-cyclical policy of Keynesian fiscal stimulus can fix a secular problem of insufficient demand caused by outsourcing the entire economy. 

The other dunce asserts that zero interest rates are succeeding where 1% interest rates failed catastrophically, and everything is getting better right now - you can't make this shit up...

"Does the U.S. economy face secular stagnation? I am skeptical, and the sources of my skepticism go beyond the fact that the U.S. economy looks to be well on the way to full employment today"

In a Real Economy, Supply Is Demand

Both of these academics, who shouldn't be trusted with anything more than a Rubik's Cube, are wrong for essentially the exact same reason: because like all Econo-dunces today, they conveniently separate (developed world) demand from (Third World) supply and then use unlimited amounts of debt to broker the difference. Whereas, in a balanced economy supply = demand. Period. That's the definition of a balanced and sustainable economy.

Here below, we see the graphic illustration of what 35 years of separating demand from supply has led to - zero interest rates (red line) and the lowest manufacturing employment in U.S. history (blue line):

If interest rates could only go lower, the U.S. would be at full Unemployment. Problem solved.

"The U.S. economy looks to be well on the way to full employment today"

Harvard Risk: The greatest risk we face