The recession of 2007-2011 was the outcome of deregulation policies which were cadged from an old University of Chicago textbook or a cheap Public Policies Institute pamphlet brought out in the early 1980's and paid for by wealthy businessmen.
Tory economists have forgotten that we have all had to obey rules since earliest times and that banks and housebuilders are no different...
A lesson from the past,therefore, as regards Keynes and the Depression of 1929-1937...the economy of the US and Britain missed a cyclical downturn in 1920-1922 and that was the cause of what became known as the Great Depression... likewise,the British and American economies in 1998-2002, leading to the Great Recession..
Money must be allowed to find its real value through depreciation of stock,raw materials and fixed capital. Let us in a crisis, however, maintain the mass of government circulating capital since labour and social welfare costs boost consumption and create a Virtuous Circle. That stimulus avoids the stagnation seen in Russia where 600 billion roubles had accumulated in the Bank Narodny by 1986. Money must circulate. Enhanced social security benefits for the poor therefore.up to a level of reasonable adequacy. That includes the unemployed and retired. In tandem, a reining in of stock market speculation through higher Capital Gains Tax and strong anti-monopoly measures directed at financial speculation and the banks.
12.12..2020
Deflation should lead to a narrowing of real income bands. In the hands of Thatcher and Reagan the-ism almost caused complete collapse,something not put right until 2011-2013. Concealed hyperinflation in house prices took the place of real growth in value in their terms of office. The tank ran dry in 1987-8 in Britain and in 1990 in the U.S.
International repercussions of semi-fascists in government?
Many poor countries starved in the 1980's and civil war broke out as people struggled for the means of subsistence.
A modern prophylactic?
The balance of giving the poor welcome relief is a concomitant of deflation.
Leadership?
The U.S. has always had a grossly inflated currency and a large part of its industry has long gone elsewhere.
A British corrective?
A balance was struck in the 1990's in Britain by offering much higher doles, more or less unconditionally,and stimulating consumption in the poorest fifth of the population. Those were ideas which I broached to a Labour Law lecturer at Queen's during my student days. The Virtuous Circle of consumption, supply and demand is re-established by a mixture of strict accounting,financial probity and pump-priming.
11.11.2021
Investment 1979-1981
It is usually forgotten that Thatcher was responsible for the consolidation of state industries in the National Economic Development Corporation and at one point invested £250m. in British Leyland and put it under the stewardship of Michael Edwards to prepare for selling it to people who already had too much money. After many rebrandings,the firm eventually ended up in the hands of the Quandt family trust,BMW.
Disinvestment and 'slash and burn' economics 1981-1989
What Thatcher could not see - so lacking in basic erudition and manners was she-was that there is no such thing as endless supply and limitless demand. Not that not everybody wants to get drunk as she and her colleagues often were when they should have been working, something even the so-called son of the valleys who I named The Welsh Windbag realised. Such was the grip of a pornographer and financial speculation on British society that Thatcher's grand 'project' proceeded and industries collapsed like skittles. Diseases such as measles and rickets reappeared in England,Scotland and Wales. Thatcher's arrant nonsense was learned from the Adam Smith Institute with its origins in the Cambridge Economic Research Centre of unlearned scholars and prolix professors. It sent the economy into a tail-spin and led to hyper-inflation in 1987-1988.
...
29.1.2022
Thatcherism's progeny?
Cambridge,the Chicago School of Economics,the London School of Economics and the Adam Smith Institute gave rise to the witless policy of monetarism.
This 'school' of finance theory awards an intrinsic value to a man-made creation,a piece of paper. In May 1980,Keith Joseph limited M3/M6,the supply of money in keeping with Thatcher's policy of "squeezing inflation out of the economy".
Paper money has no more intrinsic value than has Marx's Universal Equivalent. It is rather than being a surefast token of value or a universal means of exchange more so a voluble quantity of fiscal,financial and monetary worth. Therefore,it can be moulded and manipulated to a purpose or need as well as just being a measure of value.
Cameron? Obama?
Let us remember that full recovery from the great economic blow-out of 2007-2012 was smooth and almost painless unlike the chaos which Thatcher's political dictates led to between 1979 and 1988.
Obstacles to knowledge,1981-3, Queen's University Belfast?
Home Office hens at Queen's University resisted "quantitative easing" in 1981, foremost amongst them being Norma Dawson,Judith Eve and Phyllis Bateson.
To reiterate,41 years later," No real money changes hands." A virtuous cycle is created and industry is given a lever against financial parasitism.
Female dimwits could not see that then or now. MI5 and the RUC Special Branch held a grip of steel on the University.
Today,fascism lives on in Northern Ireland.
The big picture?
How many hundreds of millions of lives were ruined by these neo-liberal doctrines? Thatcher and Reagan's legacy was Blair. It was the destruction of Western industry and Christian civilization.
Shops are all that remain of industrial cities thanks to the misleading reports and political advertising paid for by greedy gluttons in pin-stripe suits who wouldn't know when they were full.
Restoring balance and harmony in the West?
Impose tight trade sanctions on China and subject their imports to high tariffs in every country in Europe and North America. There is no such thing as Free Trade,just Unfair Advantage.
Bast?Satt? Genug?
Joseph Paul Mc Carroll
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