imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The Misery of Economic Policy

by Robert Kurz Tuesday, Jun. 02, 2009 at 10:18 AM

The military Keynesianism since Reagan guided the streams of surplus global money-capital into the US as a "safe harbor." The orgies of deregulation and privatization cleared the way for the "assets inflation" of the financial bubble economy.


A Resurrection of Keynesianism is more than Dubious

By Robert Kurz

[This article published in: Freitag 8/29/2008 is translated from the German on the World Wide Web,]

The clearer the crash of the global deficit economy, the louder become the calls for a state economic program from the economic wise man Bofinger, economics minister Glos, unions to the left political spectrum. In view of a return of the stagflation of the 1970s, variants of Keynesian prescriptions will be exhumed that failed at that time when capitalist elites escaped in the “neoliberal revolution.” Now the same problems return on the higher level of globalization. Overcoming the obvious bankruptcy of neoliberal doctrine through the resurrection of Keynesianism is more than dubious.

All nation-state economic programs are limited. There is no national economy any more. What is shown in the books as the national economy has long been an element of an integrated world economy with a one-sided export orientation that had its vanishing point in the deficit-sponsored “consumer wonder” of the US. When this suction ends, what is still imminent and can be expected is a negative domino effect through the linkage of the world economy. The economic downswing in the whole European Union in Eastern Europe and Asia is only the forerunner of this development. Under these conditions, national economic programs can at best have the effect of the celebrated drop on a hot stone. At the same time the dilemma of monetary policy is repeated as a dilemma of economic policy as in the stagflation of the 1970s. The central banks had to raise the key interest rate to banish inflation. On the other hand, they had to lower the key interest rate to stabilize the drowning economy. State economic injections through additional borrowing as the Keyneisian prescription earmarked would intensify this dilemma. An increasing state credit-demand drives the market interest upwards, raises the price of investments and strengthens the inflationary potential.

In reality, the Keynesian powder has already faded. Neoliberalism was more Keynesian than it wanted to believe. State interventions only went in another direction and no longer in social programs, education investments and infrastructures. On the other hand, the military Keynesianism since president Reagan guided the streams of surplus global money-capital into the US as a “safe harbor.” The orgies of deregulation and privatization cleared the way for the “assets inflation” of the financial bubble economy that fueled the world economy. This deficit growth comes to an end with the global financial crisis and the global inflation as a consequence. To prevent a “core meltdown” of the financial system, the states must raise enormous sums to revitalize bank balance sheets. An end is not in sight. The armament-, financial bubble- and revitalization-Keynesianism exhausted state possibilities before additional economic programs could even be considered.

Instead of an economic program, the neoliberal mainstream of economists urges more “free enterprise reforms,” above all in the deregulation of the labor market. Regarding the economy, the illogicality of this argument is striking. The past Agenda 2010 already showed that the alleged “job successes” of coercive state administration through low wages and temporary work went along with a drying up of domestic consumption. The end of the export economy will also strike back on precarious pseudo-jobs arising in its slipstream. Delegation to the state’s ability to perform miracles is not currently demanded but rather a nonchalant social resistance for a drastic increase of wages and revising the disgraceful Hartz IV earnings in the name of life interests (Hartz IV was the German welfare reform combining unemployment assistance and income support and drastically cutting the duration of benefits).

Report this post as:

Local News

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

More Local News...

Other/Breaking News

Elder Aliyah to Israel, Like Abraham and Sarah O18 6:35PM

Politoscope plurivalent O17 6:59AM

Paraphysique du microcosme macrocosme O15 6:44AM

September 2018 Honduras coup update O15 3:31AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:34AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:23AM

Paraphysique de l'ubérisation O13 7:56AM

22 Ways Trump Has Increased US Deficit By 4 to 5 Trillion Dollars O12 10:34PM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Plus d'hôpitaux, à bas les aéros O12 6:38AM

When Banana Ruled (documentary) O11 3:00AM

Outstanding Report By RAMOLA D &Dr.Tomo Shibata O10 9:17PM

Dark Clouds Gather on Horizon for Financial System, Warns International Monetary Fund O10 1:51PM

Fbi pure evil & immorality O10 5:39AM

Reality Check: Palestinian-Israeli Coexistence is a Big Lie O09 7:40PM

Voiceless Animals: 2018 Candidates They Oppose O09 7:01PM

IMF Lowers Global Growth Projections and Raises Concerns of Financial Crisis O09 3:27PM

Canitie, l'inhumanité vieillit O09 7:13AM

L'anarchie en quelques exemples O07 6:50AM

100 Ways GOP Have Stolen Elections Since 1876 O06 12:03AM

Proximospective de l'univocité réifiée O05 6:27AM

“Kava-no!!!” O04 6:42PM

Trump & Palestine vs. Genesis, Rashi & The Land of Israel O03 6:29PM

The Criminality of the Elites O03 11:35AM

Business de l'inhumanitaire O03 7:51AM

Marriage Rape/Date Rape Highest Rapes O02 2:59PM

Women I Know Get Raped - Too Many Times To Count! O02 2:55PM

Women In USA Have Stockholm Syndrom O02 2:50PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy