Subjects Archives: Stagnation

David Leonhardt tells readers that the Great Recession has had some silver linings for many workers.  High on his list is continued wage growth.  This is misleading.  All the real wage growth in this downturn occurred in the months of November and December of 2008.  This was due to a plunge in the price of […]

In 1972 Selma James, founder of the International Wages for Housework Campaign and, more recently, Global Women’s Strike, wrote the following: “We demand the right to work less.”  Her reasoning was clear — when women work for a wage for 40 hours a week and still carry the weight of childcare and housework, what is […]

  Excerpt: Importantly, the initial collapse and following standstill in economic activity and nominal levels of GDP is also extremely bad news for the strategy of fiscal consolidation itself.  On the one hand, to keep on servicing interest payments (see above), nominal debt will continue to go up.  On the other hand, nominal GDP goes […]

As we have pointed out on more than one occasion in this space, the government deficit is far from being a primary trouble spot.  In fact it serves as an important counteracting force to the prevailing stagnation.  On the other hand, the business community here and abroad sees the deficit, presumably because of its effect […]

Executive Summary: This paper looks at the planned austerity measures in Spain, the rationale for the spending cuts and tax increases, likely outcomes for future debt-to-GDP ratios, and the probable results of alternative policies. It is widely believed that Spain got into trouble because of the over-expansion of government spending.  However, during the economic expansion […]

I love the prospect of secular stagnation (raised by Bob Reich) primarily because the answers are so easy: Let’s keep our eyes on the ball.  The problem in this picture is that we are capable of producing more goods and services than we want to consume.  It’s a problem of too little money chasing too […]

I We live at a time when resistance to the inequities that exist in this world and the struggle for a better world are almost totally detached from any striving for socialism.  Climate change, imperialist aggression, forcible dispossession of peasants in the name of “development”, oppression of the tribal population, gender discrimination, and ecological degradation […]

The European public debt crisis, artificially created by the puritan obtuseness of German Chancellor Angela Merkel, has spread to even Japan.  In fact, Naoto Kan, the new prime minister, mentioned Greece in a speech in which he claimed to fear the collapse of the Japanese economy under a heavy public debt equal to 230 percent […]

One thing should be made clear about the situation in the Eurozone economies that is not clear at all if we rely on most of the news reports.  This is not a situation where countries face a “dilemma” because they have overspent and piled up too much public debt.  They do not face “tough choices” […]

  What the group around Khomeini succeeded in doing was to unite behind it a wide section of the middle class — both the traditional petty bourgeoisie based in the bazaar and many of the first generation of the new middle class — in a struggle to control the hierarchies of power.  The secret of […]

The latest fad in business journalism is to sound the alarm about the United States having become the biggest debtor in the world.  This is intended to bring visions of our country sliding into a third world-type debt trap.  But even those who don’t draw such dire inferences nevertheless assume that a ballooning U.S. debt […]

There is a remarkable consensus among economists of all ideological and political persuasions — conservative, liberal, and radical — that capitalist economies must grow to be healthy, and that the key to growth lies in the capital accumulation or savings-and-investment process. Accepting this view, we have long been arguing in effect that capitalism, like living […]

Tonight you celebrate the independence day of the state of Israel.  I do not. You probably believe that the Jews deserve a state, that the Holocaust survivors and their children had a right to a safe home of their own, and that the Land of Israel is the natural and legitimate place to fulfill the […]

  An interview with Egyptian economist Samir Amin: his latest book reiterates his search for alternatives to surpass capitalism, which he describes as “a historical parenthesis”; meanwhile, processes of migration are building a planet of slums. “Memoirs of an Independent Marxist”: that is the subtitle of A Life Looking Forward (Zed Books, 2006), the latest […]

One of the striking features of the recent period has been the diffusion of manufacturing and service activities from the countries of the core to the periphery.  The logic of competitive striving for the export market among the many “labour reserve” economies in the periphery leads to the accumulation of ever-growing reserves and a constraint […]

As the EU summit meeting convenes, Greece is dominating the agenda much more than Germany’s Chancellor Angela Merkel had wanted.  This week she has thrown cold water on the idea that Germany and other EU countries would take responsibility for helping Greece to roll over some of its debt, handing that job off to the […]

On March 16, Homeland Security Secretary Janet Napolitano announced that she was cutting millions of dollars from SBInet, a high-tech “virtual fence” that Boeing Co. has been developing for use along the U.S. border with Mexico.  Her announcement came just two days before the United States Government Accountability Office (GAO) was scheduled to issue a […]

  Zimbabwe’s land issue has generated unprecedented debates both within and outside the country.  The debates, which followed the dramatic occupations of white farms by rural peasants in the late 1990s, are generally polarised between those who support radical land reform and those who support market-orientated reforms.  The former stand accused of supporting Mugabe’s regime […]

Alan Greenspan had a dream, or rather a nightmare.  Greenspan seems to have woken up in a cold sweat one morning in fear that the period of “disinflationary pressures” that had kept inflation low since the 1990s was about to end.  This was 2007, when he published his autobiographical economic treatise, The Age of Turbulence. […]

China and India are generally regarded as the two large countries in the developing world that are the “success stories” of globalisation.  This success has been defined by the high and sustained rates of growth of aggregate and per capita national income; and the substantial reduction in income poverty.  Further, both China and India are […]