You know, there’s not much here to disagree with. Ted Rall:
Now Congress is worried about the deficit. So read my lips: no new bailouts, not even one that might actually work.
Some think the U.S. could export its way out of the depression. But a radical restructuring of trade agreements and manufacturing infrastructure would have to come first, followed by years of expansion. U.S. policymakers haven’t even begun to think about the first move. Moreover, the rest of the world isn’t in a position to buy our stuff. The rate of expansion of the economies of China and Japan is slowing down. Germany and other EU nations are imposing austerity measures.
Globalization is key. Writing in The Wall Street Journal, John H. Makin argues that the actions of individual G20 nations threaten to bring the whole system crashing down in a Keynesian “paradox of thrift.”
Makin says: “Because all governments are simultaneously tightening fiscal policy, growth is cut so much that revenues collapse and budget deficits actually rise. The underlying hope or expectation that easier money, a weaker currency, and higher exports can somehow compensate for the negative impact on growth from rapid, global fiscal consolidation cannot be realized everywhere at once. The combination of tighter fiscal policy, easy money, and a weaker currency, which can work for a small open economy, cannot work for the global economy.”
Adds Mike Whitney of Eurasia Review: “Obama intends to double exports within the next decade. Every other nation has the exact same plan. They’d rather weaken their own currencies and starve workers than raise salaries and fund government work programs. Class warfare takes precedent over productivity, a healthy economy or even national solvency. Contempt for workers is the religion of elites.”
One can hardly blame workers for fighting back. Two weeks after hundreds of protesters rioted at the G20 summit meeting, Toronto police are pouring through thousands of photos and are using facial recognition software to track down offenders. They have even released a Top 10 “Most Wanted” list and related pictures of activists.
Whether or not the anti-globalization protesters are motivated by the struggle for liberation and economic equality, they symbolize the industrialized world’s best chance to prevent the economy from continuing its current process of slow-motion collapse. If the system cannot be saved by consumers, business or government, the system itself must be revamped and replaced. Late-period global capitalism’s constant cycle of booms and busts is unsustainable and intolerable. States must regulate and equalize incomes, and control production.
If the cops were smart, they would track down and arrest those people who really are ruining the economy. They could start by listing and releasing the photos of the attendees of the G20.