The equations of Effective Demand calculate that real GDP is above potential real GDP. Is that too crazy? (Here is the link...) But the dynamics of the economy fit the picture more and more everyday.

The path forward may not be a matter of raising real GDP, **but of raising potential real GDP.**

This puts the economy into a completely different focus at a time when the CBO is actually slowly lowering their calculation of potential real GDP. What if they end up lowering all the way down to the calculation that I have presented? That would be a lot of wasted time working on wrong solutions.

So, what would we do differently to raise potential real GDP, intead of just real GDP?