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

How Neoliberal Ideology Destabilized the World Balance: Krugman and Galbraith

by Kai Ruhsert Wednesday, Oct. 07, 2009 at 11:22 AM

"If the depression has not openly erupted, all the features of the 1930s are having a spectacular comeback." (Paul Krugman) To free the US from the claws of private interests, James Galbraith urges the public authority to set social and ecological norms.


By Kai Ruhsert

[This article published September 21, 2009 is translated from the German on the Internet,]

The trauma of the Great Depression of the 1930s still haunts the minds of economists. In the new edition of his book “The Return of Depression Economics,” Paul Krugman, 2008 Nobel Prize winner for economics, warns: “If the depression has not openly erupted, all the depression features of the 1930s are having a spectacular comeback.” In re-reading his book, one is amazed by his correct predictions based on his analyses. His analyses show why the world economy is on the same wrong track as several decades ago.

Two books of the American economists Paul Krugman (“The Return of Depression Economics”) and James K. Galbraith (“Predatory State”) agree in essential points.


Economic crises have regularly returned since the 1990s. The crises in Latin America, Asia and Russia were hardly noticed in the industrial states. In industrial states, the real estate crisis and the subsequent Internet speculation bubble occurred in these years.

Every time the storm broke out very suddenly completely out of the blue. In the growing threshold countries, the recommended policy of opening markets and the competitive economy was diligently realized but the investors suddenly withdrew. Developed industrial states – national economies with the same orthodox-liberal orientations – seemed to have freed themselves from the tyranny of economic cycles and imagined they were on the perpetual growth path thanks to new technologies, free commodity markets and then free financial markets. After every recession, “good” arguments were found again and again to defend the adopted line of economic- and financial policy.

In a spirited essay, James K. Galbraith confirms Krugman’s analyses. In both books, the ideology of economic freedom, competition without limits, tax cuts for the super-rich, the monetarist obsession of fighting inflation and the budget orthodoxy of balanced budgets are tackled. According to Krugman, the supply-side economy is an “intellectually hollow Corpus” and a “fanatical ideology.” Galbraith puts more coal on the fire. Monetarism leads to financial crises “always and everywhere.”


Both authors show how the deregulation of the financial markets gave the financial industry a de-stabilization power position for which the real economy has to pay. This phenomenon first spread when the Keynesian Bretton Woods system was ended in 1971 after the US abandoned the convertibility of the dollar in gold and left the economy to anarchy.

Galbraith says the economic- and financial policy practiced in the US really runs counter to the neoliberal credo. At the beginning of the 1980s, the American Federal Reserve raised the prime interest rate to combat inflation to 20% with the consequence of a worse recession. After this experience, a permanent low interest policy has been pragmatically followed in the US without an inflationary development – a clear refutation of the monetarist dogma…

Under the last Bush presidency, the conventional vocabulary of “market and competition” helped annul meaningful regulations and at the end promoted private interests in the areas of security, social security and schools. With its actual policy, according to Galbraith’s judgment, the American rightwing bids farewell to the officially propagated “free market mythology.”

Both authors urge a political reversal and a new policy that breaks with practices based on the neoliberal credo. According to Paul Krugman, all financial activities must be regulated. The freedom of international capital streams is put in question and re-regulated. In the current recession phase, Krugman pleads for the rediscovery of Keynes and measures that strengthen aggregate economic demand.

Galbraith is for an end to the low-wage policy that brings more social inequality, a freeze on the policy of cuts in the social net. This policy was sold to the public – in a false way – as the price for securing the prosperity of rising generations. To free the US from the claws of private interests, Galbraith urges the public authority to set social – for example, minimum- and maximum wages – and ecological norms. He proposes a kind of public future planning. He wants farsighted planning of infrastructure investments in the are3as of transportation, environment and energy.

In the opinion of reviewer Adrian de Tricornet, Krugman and Galbraith with their books want to break the economic taboo in the US and free democratic thinking from its helplessness toward the neoliberal consensus. To revive and renew the economic- and finance-policy debate, the crisis has to assume global dimensions.


"2009 Preliminary Report of the UN Stiglitz Commission" (109 pages, pdf)

"VIDEO: Conversation with John Kenneth Galbraith." 52 minutes

link to

"VIDEO: Chomsky on Reagan and Friedman Economics"

"Capitalism is the Problem: System Error" by Bernd Druck and Yaak Pabst

"The Crisis of Capitalism: Credit-Doping" by Rainer Roth

"The Crisis of Speculative Capitalism" by Rudolf Hickel

"Economic Policy after the Financial Crisis" by Kai Burmeister and Till von Treek

"One Nation, Two National Economies" by Max Fraad Wolff

VIDEO: Eduardo Galeano on Grit TV"

link to

"Blame Canada" by the Stimulator on

May knowledge-maximization replace profit-maximization! (cf. Rainer Roth)

Report this post as:

Local News

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


lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Paraphysique de psychosomatique S22 6:58AM

Chuck Grassley: Women Abusing, Animal Murdering, Illegal War Supporting Criminal S22 2:58AM

Finance Capitalism and the Digital Economy S21 4:45PM

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Steer clear of work morality! S09 12:10PM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh A31 10:45PM

Paraphysique d'exploitation occultation A31 10:24PM

Ryan Zinke Is Charging Taxpayers For A Trophy Hunters' Council A31 2:10PM

Is the Financial Crash 2.0 Coming? A31 10:07AM

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