Michael Hudson echoes a theme also articulated by Robert Reich: There can be no recovery because the economy has been predicated upon an unsustainable debt bubble. The economy must be re-built. Efforts to "re-inflate" the bubble will fail.
His article is a good articulation of this problem
http://neweconomicperspectives.blogspot.com/2010/01/state-of-union-rhetoric-2010-part-ii.html
Here is an excerpt:
"We are not really emerging from a “recession.” The word means literally a falling below a trend line. The economy cannot “recover” its past exponential growth, because it was not really normal. GDP is rising mainly for the FIRE sector – finance, insurance and real estate – not the “real economy.” Financial and corporate managers are paying themselves more for their success in paying their employees less.
This is the antithesis of recovery for Main Street. That is what makes the FIRE sector so self-destructive, and what has ended America’s great post-1945 upswing..."
Subscribe to:
Post Comments (Atom)
-
In 2007, Rick Weiss reported for the Washington Post potential hazards of genetic medicine and the failed regulatory apparatuses designed t...
-
March 11 is the anniversary for the Fukushima Daiichi disaster of 3 nuclear meltdowns, at least one melt through, and a fire in at least ...
-
The weekend edition of the Wall Street Journal reports that PG&E suffered a massive loss of control of the utility's databases, le...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.