Re-examine The Economic Stagnation Of The Last Century The United States

2008 financial crisis has been six years, Keynesian demand management policies While Western developed countries have adopted varying degrees, such as the U.S. quantitative easing monetary policy, did not drive the national economy entered a rapid development stage, arduous road to economic recovery and slow. According to long-cycle theory, the economy did exist long period of about 50 years, the world economy is in a decline in the fifth stage of the long cycle, lack of innovation, lack of motivation leads to business investment, reduced investments lead to a decline in effective demand, investment and economic growth into vicious circle, the formation of long-period decline phase of endogenous mechanisms, national economies have stagnated phenomenon.Technological innovation and Reagan economic policies are leading the United States out of the main path of the 1970s stagflation, the information highway construction is an important factor in the United States to achieve rapid economic growth in the 1990s, technological innovation is to guide the United States into the fifth Kondratieff cycle upswing The key factor. According to Schumpeter’s innovation cycle theory:Innovative cause innovation group, innovation group will improve labor productivity, reduce production costs and increase business investment initiative to promote investment and consumption into a virtuous cycle, stimulating economic growth.Chinese economic overcapacity serious, especially the real estate market and the steel industry, these two industries is the pillar industry of China’s economic growth, prompting investors to drop excess capacity, the impact of economic growth, GDP growth in the first quarter of 2014 fell to 7.4% economic stagnation evident in urgent need of industrial restructuring. Formation mechanism of the United States of the 1970s stagflation and the governance process has reference to the Chinese economy, the wage-price spiral is an important factor in causing the U.S. stagflation, innovation is the key path prompted the U.S. out of the stagflation of the long period of economic stagnation is accompanied by the phenomenon. stagflation of American economy have a lot of inspiration to China:Chinese government to stimulate domestic demand through higher wages economic policy feasible? Advocates of the market economy on the significance of China’s industrial structure adjustment? Weak external demand, insufficient domestic demand, China how to rely on investment to promote economic growth? China how to use the fifth stage of the long-wave decline in industrial restructuring, upgrading the industrial structure?...