imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
Tell the NSA: StopWatching.US

Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

CopWatch LA

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List





IMC Network: www.indymedia.org 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
printable version - js reader version - email this article - view hidden posts - tags and related articles
link:

From Financial Crisis to Stagnation: An Interview with Thomas Palley

by Thomas Palley Saturday, Dec. 08, 2012 at 10:51 AM
marc1seed@yahoo.com

"The way economies are organized and function is significantly the product of social choices, not the product of nature. Over the past thirty years we (society) have embraced a set of economic ideas..."

"My interpretation is different – very different. I call it the destruction of shared prosperity hypothesis. This view is not represented in mainstream economic discussions because it challenges the fundamental theoretical foundations of mainstream economics which are shared by both hardcore Chicago School (freshwater) and softcore MIT School (saltwater) neoliberal economics.

My argument is that around 1980 the U.S. adopted a fundamentally flawed economic paradigm. From 1945 through to the mid-1970s the U.S. economy was characterized by a “virtuous circle” Keynesian growth model built on full employment and wage growth tied to productivity growth. The political triumph of Ronald Reagan enshrined a new economic paradigm that abandoned full employment and severed the link between wages and productivity growth.

The new paradigm was fundamentally flawed. One flaw was that it relied on debt and asset price inflation to fuel growth instead of wages. A second flaw was the model of globalization which created an economic gash in the form of leakage of spending on imports (the trade deficit), leakage of investment spending offshore, and leakage of manufacturing jobs offshore. These twin flaws created a growing demand gap.

That is where finance enters the picture as its role was to fill the demand gap. Financial deregulation, regulatory forbearance, financial innovation, financial mania, and plain vanilla financial fraud kept the economy going by making ever more credit available, However, as the economy cannibalized itself by undercutting income distribution and accumulating debt, it needed ever larger speculative bubbles to grow. The house price bubble was simply the last and biggest bubble and was effectively the only way around the stagnation that would otherwise have developed in 2001.

The house price bubble delayed the onset of stagnation but at a cost. When it burst it created a financial crisis because of the scale of financial excess. Moreover, it also makes it harder to escape stagnation now because of the scale of debt burdens and the extent of destruction of credit-worthiness."

Thomas Palley, an AFL-CIO economist, is a fellow at the New America Foundation.

Read more at http://www.nakedcapitalism.com/2012/04/from-financial-crisis-to-stagnation-an-interview-with-thomas-palley.html#Us9vZbqoKYzRIuh1.99
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


Local News

Dutchman Opens Limited Engagement at Edgemar Center for the Arts on July 15 J01 9:21AM

KPFK in Pacifica's meeting - more descriptions J29 2:57PM

KPFK hosted PACIFICA's board in LA. Missed it? here's some for ya J29 2:16PM

5 Reasons to Support RAC-LA This Month J20 11:10PM

Viacom CBS' Sumner Redstone Promotes Brutal Treatment Of Pot Smokers J19 1:20PM

Summer 2015 National Immigrant Solidarity Network Monthly News Alert! J15 12:33PM

Housing Board Member is an Evicter! J11 11:37PM

KPFK & PAPCIFICA forum in LA J11 5:45PM

LA Times goes to bat for killer cops in Salinas J10 10:34PM

NUCLEAR SHUTDOWN NEWS MAY 2015 J04 12:48PM

Los Angeles Uranium Film Festival J04 7:18AM

KPFK difficulties continue J01 4:22PM

KPFK buys premiums to re-sell them for donations -so J01 4:00PM

Latest Long Beach Police Execution: Murder of Youth In Mental Distress J01 8:19AM

How can california deal with this water crisis? M31 1:46PM

Four Winds of March Against Monsanto Los Angeles Take The Streets of Hollywood M27 2:49PM

Foreclosure Victims Occupy Senate Stump Speech of Kamala Harris M21 4:58AM

LA Nakba Anniversary protest at the Israel Consulate M19 12:56AM

Long Beach Police Execute Unarmed Teen Hector Morejon on Suspicion Of Trespassing M15 6:08AM

Eagle-Con 2015 at Cal State L.A. M13 4:15PM

Brendon Glenn Dies and Venice S/Weeps M08 7:45PM

JOIN CLASS ACTION LAWSUIT AGAINST RONALD L. HAVNER JR's PREDATORY BUSINESS, PUBLIC STORAGE M08 4:48PM

Councilmember Bonin Calls People of Venice Outraged by Police Murder “Outside Agitators" M08 10:45AM

May Day March, LA 2015 M07 7:33PM

More Local News...

Other/Breaking News

"Margaret Sommers" Public Storage’s Corporate Cunt of the Year J04 5:14PM

GA AS P J04 3:33PM

ACT: Ask Oprah Winfrey to Renounce Leviev’s Angolan Blood Diamonds and Israeli Settlements J04 2:39PM

Video: Rise of the Robots, 1 hr J04 1:27PM

White Supremacists tied to human trafficking and a series of unsolved murders J04 1:22PM

Thoughts on Independence Day Weekend J04 12:20PM

US-Orchestrated Coup Attempt in Ecuador J04 10:31AM

Tentative Deal on Iran Sanctions Relief? J04 10:07AM

Hillary Clinton Warns of Nonexistent Iranian Threat to Israel J04 7:25AM

American Torture Story J04 4:27AM

Scare-mongering Greeks to Vote "Yes" on Sunday J04 3:24AM

Outlaws Are Better Company Than The Community of Cops J03 8:11PM

Caution Re Outdoor Grills, Fireworks And Other Holiday Events J03 2:45PM

Human Rights in Venezuela v. America J03 12:32PM

Israel Falsely Claims Hamas Supports ISIS in Sinai J03 10:04AM

Greece: Ground Zero for Global Pillage J03 6:36AM

UN Declares Highest Humanitarian Emergency Level in Yemen J03 3:23AM

Anarchie et anarchisme J02 10:37PM

The Shortwave Report 07/03/15 Listen Globally! J02 4:48PM

politikang sekswual sa pilipinas J02 12:10PM

Sunday's Referendum in Greece J02 11:31AM

Troika Plan for Greece: Endless Pillage and Regime Change J02 10:07AM

More Proof of Israeli Ruthlessness J02 6:28AM

Pentagon Calls Russia, China, Iran and North Korea Threats to Global Peace J02 3:46AM

Ukraine: Rogue State Deadbeat J01 11:52AM

Happy Canada Day! The TPP and Canada, 4 pp J01 9:43AM

Trans-Pacific Partnership Guarantee J01 9:34AM

Former Science Ed of London Times: Smallpox Vaccine Triggered Aids J01 9:32AM

More Breaking News...
© 2000-2003 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