Demand doesn't come from heaven. It comes from consumption, investment, government spending, or net exports. No one has a story as to why we should expect any of these components of demand to be higher than they currently are. Thus the only mystery is why anyone thinks there is a mystery.
And the story with wage growth is equally unmysterious. Wages will start growing when the labor market gets an awful lot tighter than it is now, given that we are still close to 7 million jobs below trend.
We should be glad that we put to death two very silly myths about the economy and economic policy in 2014. Let's see if we can kill these other four fantasies in 2015.
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