Sunday, May 15, 2016
Voting With Their Futures
This chart simply demonstrates how the IMF has lowered its forecast growth rate (dotted lines) every year as growth itself has slowed.
Globalization/Neoliberalism/Reaganomics/Thatcherism/Austerity - whatever you call, some of us have been protesting it and trying to get others to be aware of it but to little or no avail. Fortunately it looks like it's killing itself. Unfortunately it will take a lot of us with it.
Gail Tverberg, who writes for solidly mainstream, Capitalist, OilPrice.com, mostly analyzes and writes about supply and demand factors that affect the oil industry but a recurring theme in her articles is that as wages decline in countries like the US, as jobs are shipped to lower wage countries (and as union density declines I might add), growth not only in the US but everywhere must necessarily slow down. It's simple supply and demand. No money in the pocket, no demand.
Capitalism doesn't work unless there's growth. Period. People don't invest. They hang on to their money. Just as American consumers are, finally, saving, because they know that the economy hasn't recovered for anyone but the 1 percent. They can feel what's shown in the chart above, and in the fact that budget cutting Barak Obama is on his way to becoming the first president in US history to never have a single year with an annual growth rate of more than 3 percent.
The masses, however, aren't making the connection between cause and effect, in part because elected Democrats talk about everything but this, and so the masses keep electing fiscally conservative Democrats, like we do in New Mexico, and Republicans and people like the Clintons, all of whom believe their own propaganda and are too afraid not to.