Tyler quotes the FT in a post entitled Not your grandpa’s aggregate demand shortfall.

Perhaps but it is your Great^5 Grandapa Aggregate Demand shortfall. The same thing happened in a period of rapid technological growth AND as I may be alone in pounding rapping the table on the importance of, shifting factor shares.

Not inequality. Factor shares.

Ironically, Great^5 Grandpa understood exactly what was happening.

Now, my friends, let me come to the great paramount issue. If they ask us here why it is we say more on the money question than we say upon the tariff question, I reply that if protection has slain its thousands the gold standard has slain its tens of thousands.

. . .

Mr. Carlisle said in 1878 that this was a struggle between the idle holders of idle capital  [hedge fund managers and global supply chain engineers] and the struggling masses who produce the wealth and pay the taxes of the country; and my friends, it is simply a question that we shall decide upon which side shall the Democratic Party fight. Upon the side of the idle holders of idle capital, or upon the side of the struggling masses?

. . .

You come to us and tell us that the great cities [Rapidly Industrializing East] are in favor of the gold standard. I tell you that the great cities rest upon these broad and fertile prairies [The Aging West]. Burn down your cities and leave our farms, and your cities will spring up again as if by magic. But destroy our farms and the grass will grow in the streets of every city in the country.

. . .

If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.


FRED Graph