RadioRaheem84
14th May 2010, 22:00
....but that doesn't mean that it's the only measure to take. Within the framework that has been set up in this present day, to be rational is to be conservative. This much is true but it also relies on a fundamental capitulation to those in control of the means of production. Every time I hear a right winger rave on about Econ 101 and "common sense", I think that under the present circumstance, they're right. In the eyes of any business man or someone who presupposes right wing libertarian logic, the problems point to right wing solutions.
In the midst of a stagnant productive economy that faces nearly every Western nation, social spending has been relied on by debt rather than an actual productive (real) economy. Since the inflation scare of the 70s, the owners of wealth focused their attention on ridding themselves of the unions and high wages that was cutting into their profit margins. Instead, they took their production overseas and hired more immigrants, effectively forcing wages down in developed nations. To satisfy aggregate demand, due to a falling purchasing power, many workers had to rely on debt finance. This created an entire reliance on debt to meet satisfaction where the productive economy lay dormant. This was debt in all facets; from individual, corporate to even public debt. So naturally, supply side economics took control where Keynesians left off. Their logic is now the reigning logic (amidst a few neo-Kenyesians too). Liberals are also becoming more and more reactionary as the years pass and more and more capital is accumulated.
Where we are now is in the middle of the mess created by relying on debt to supplant everything from social spending, to individual spending to corporate spending. Right wingers capitalize on this moment to tell the public to tighten their belts, work harder and give up the "welfare". Well, in one sense they're right if you want to continue the existing framework because (sorry to any liberals in here) the days of Keynes are OVER. It seems like the public has to either accept right wing capitalist rule or demand for a system that runs not on the fluctuations of an anarchic market, but on the needs and wishes of the public.
In the midst of a stagnant productive economy that faces nearly every Western nation, social spending has been relied on by debt rather than an actual productive (real) economy. Since the inflation scare of the 70s, the owners of wealth focused their attention on ridding themselves of the unions and high wages that was cutting into their profit margins. Instead, they took their production overseas and hired more immigrants, effectively forcing wages down in developed nations. To satisfy aggregate demand, due to a falling purchasing power, many workers had to rely on debt finance. This created an entire reliance on debt to meet satisfaction where the productive economy lay dormant. This was debt in all facets; from individual, corporate to even public debt. So naturally, supply side economics took control where Keynesians left off. Their logic is now the reigning logic (amidst a few neo-Kenyesians too). Liberals are also becoming more and more reactionary as the years pass and more and more capital is accumulated.
Where we are now is in the middle of the mess created by relying on debt to supplant everything from social spending, to individual spending to corporate spending. Right wingers capitalize on this moment to tell the public to tighten their belts, work harder and give up the "welfare". Well, in one sense they're right if you want to continue the existing framework because (sorry to any liberals in here) the days of Keynes are OVER. It seems like the public has to either accept right wing capitalist rule or demand for a system that runs not on the fluctuations of an anarchic market, but on the needs and wishes of the public.