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Post by nailbender on Aug 10, 2009 11:24:36 GMT -6
Here is an excellent essay on the current financial implosion. Thomas Palley understands the "current" neo-liberal economic policies of "Globalization" that have undermined the US economy since 1980 must be reversed/eliminated before there will be an sustainable recovery of our economy. ----------------------- America’s Exhausted Paradigm: Macroeconomic Causes of the Financial Crisis and Great Recession. snip... The case for paradigm change has yet to be taken up politically. Those who built the neoliberal system remain in charge of economic policy. Among mainstream economists who have justified the neo-liberal system, there has been some change in thinking when it comes to regulation, but there has been no change in thinking regarding the prevailing economic paradigm. This is starkly illustrated in the debate in the United States over globalization, where the evidence of failure is compelling. Yet, any suggestion that the United States should reshape its model of global economic engagement is brushed aside as “protectionism.”, which avoids the real issue and shuts down debate. www.newamerica.net/files/Thomas_Palley_America%27s_Exhausted_Paradigm.pdf
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Post by unlawflcombatnt on Aug 10, 2009 15:14:06 GMT -6
This is an excellent article. It gives a good description how credit & debt-funded demand has replaced wage-funded demand as the prime source of consumer demand. New credit-creating innovations, combined with the deliberate creation of financial bubbles that created asset overvaluation, has allowed spending to continue rising without a corresponding increase in wages, income, or wealth creation.
It's amazing how obvious this is. And it's more amazing that all the "experts" managing our economy don't readily acknowledge this. We can only borrow so much, before no one will lend to us. This is true at the individual level, as well as the macro level.
We can't sustain our economy on "confidence" and hot air alone. Someone has to produce wealth. And when that wealth is produced, much of it needs to be shared with the major demand creators--workers and consumers.
As it stands now, this country is not producing enough real wealth, and not enough of the real wealth actually produced is shared with workers and consumers--too little to create the aggregate demand needed to rekindle our economy.
And even here, too much of that limited demand is being expended on import purchases, doing nothing to stimulate the domestic economy. In fact, quite the opposite. For every $ spent on foreign-produced goods is a $ less spent on domestic goods, and a $ less of domestic production demand.
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Post by nailbender on Aug 10, 2009 15:36:01 GMT -6
Agreed, redistribution of wealth is another "problem" that is going to have to be confronted and resolved before any sustainable recovery can take place.
Wall Steet and the criminal banking syndicate need to be reined in/starved, they are skimming and hording to much wealth. This is one of the reasons I promote "State Banks", these banks would have the welfare of their states economies their top priority, not the size of their bonus's.
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Post by nailbender on Aug 10, 2009 16:04:47 GMT -6
@unlawflcombatnt-It's amazing how obvious this is. And it's more amazing that all the "experts" managing our economy don't readily acknowledge this. ------------------
You've hit the nail on the head with this comment and actually explains why their will be NO resolution to the problems we face until TPTB are unseated.
Government Sachs/FED know exactly what has happened and why. They DO NOT care what happens to you or me, this country, their competition. They only care about their own accumulation of wealth in their sick game of crony capitalism. They RUN this country and control BOTH parties, the red and the blue which are just different colors of the same paint.
Government Sachs and Corporate America need to be dislodged/cut off from the political process it currently completely controls. This will need to be done with DC term limits, lobbyist reforms, campaign donation reforms/ eliminating corporate donations, and closing the revolving door between Wall Street and DC.
There is no doubt in my mind that a continuation of the current government policies will result in 3rd world standard of living/ status for the US.
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Post by judes on Aug 10, 2009 19:25:41 GMT -6
Good article and agree with the sentiment. Good to see ya here nailbender, I do believe I have given you lot's of Karma on Mish's site. : )
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Post by fredorbob on Aug 11, 2009 8:26:59 GMT -6
I'm not afraid of being labeled a protectionist.
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Post by unlawflcombatnt on Aug 11, 2009 13:54:01 GMT -6
I'm not afraid of being labeled a protectionist. Me neither. In fact, I'm proud to be a "protectionist." I label myself as a protectionist. Protecting American jobs and the US domestic economy is what our government should do, and those doing so should be proud to labeled as protectionists. "Protectionism" of Americans is something to be proud of, not ashamed of.
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Post by judes on Aug 11, 2009 20:04:00 GMT -6
Yep, me too. In fact I have always associated the word protection with positive feelings.
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