Thursday, April 17, 2008

Michel Husson: A Structural Crisis of Capitalism

Differing from the spotty, halting, conservative and dogmatic analysis by Raymond Lotta who throws everything into Rumsfeld's "unknown, unknowns" of self-styled communist political economy you can get a little meat and potatoes with this analysis:

[Excerpt] "This system of "vases communicants" can no longer operate because of the ruin of millions of households and because of the drop in the dollar. The dollar has never been so weak and unstable and interest rates are no longer attractive, to the point that capital inflows will cease, if they haven't already. The great unknown, then, is what the alternative model will be. It ought to challenge the unbelievable inequalities in income that exist in the United States. All the last few years' increase in growth has, in fact, been seized by a very narrow social stratum and the average salary has barely increased. To move to a regime of more balanced growth, the highest incomes would have to be pruned. Will the next government want or be able to implement a New Deal that would preclude having the great mass of employees pay for high finance's mistakes?..." Read:
Michel Husson: A Structural Crisis of Capitalism

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