Originally Posted by TonyR
No, it's not. Production follows demand.
That's the fundamental disagreement.
Although to some extent you could argue that if we were producing more we'd have more people employed in the production process. But, companies aren't going to produce much above and beyond demand.
Production is where all the real money is. Buy a Chinese pencil and you employ freight and retail channels.
Buy an American pencil, and you employ American loggers, sawmillers, miners, paint makers, plus freight and retail channels.
Demand stoked in a vacuum will buy whatever's available from wherever available. It diminishes itself over time. Demand driven by people producing things others need feeds itself.
Our biggest problem is the retail-demand-first economy. Great for multinationals and their upper crust. Pretty useless for the average underemployed American.