What I meant by “crowded out” is that the excess borrowing we've seen over the past 30 years in the household sector reduces the availability of resources that can be loaned to businesses. A great way of seeing it is through total lending in the financial system. A constant increase in the share going to households is at the expense of the share going to businesses. There's a direct link. We've also seen business investment in machinery, equipment and intellectual property—which are productive investments—declining over the same period.
