Monday, June 20, 2011

America flirts with a fate like Japan’s

By Clive Crook

The stalling of the US recovery raises big, scary questions. After a recession, this economy usually gets people back to work quickly. Not this time. Progress is so slow, the issue is not so much when America will return to full employment but what “full employment” will mean by the time it does.

The administration thinks the pace of recovery will pick up soon. Last week President Barack Obama called the pause a “bump in the road”. Others think the slowdown will persist and might get worse, fears that cannot be dismissed. One alarming possibility is that the traits the US has relied on to drive growth in the past – labour market flexibility, rapid productivity growth – might have become toxic. If the US is unlucky, traits seen as distinctive strengths are now weaknesses, and a “lost decade” of stagnation, like Japan’s in the 1990s, might lie ahead.

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1 comment:

  1. It is said by some that a return to confucionist cultural values would fix Japans economy !

    But Guillotines and pitchforks are required for
    fixing America capitalism as it rots from its ruling elite down in a sea of corruption?

    America is being converted to a nation of slaves to debts owned by a financial aristocracy in a failed capitalism.

    Millions are unemployed, underemployed and living on food stamps after the owners of American industry and jobs shifted their business to the cheap labour third world. To counties like “communist” China.

    After a financial coup US government tax revenues are now diverted to socialise the losses of the bankster led financial sector after they issued Trillions of dollars in fraudulent securities.
    Finally bankrupting the system. By running American capitalism as a Corporate State

    Nobody goes to jail .

    What is to be done?

    Some say a restoration of traditional American values and morality (whatever that means)
    is required for a true recovery of the Ponzi economy
    Depak Chopra hopefully imagines a Palin led ,T party mass type Cultural Revolution In America.
    “Since Wall Street’s recklessness plunged us into a national nightmare from which we are trying to awaken, it’s hurtful to say, as some do, that Sarah is the national nightmare. Not true. She is historically inevitable…..
    …“My President Palin would lead us through a national cleansing, like Chairman Mao’s Cultural Revolution. Nothing as violent, however,
    not at first.
    Maybe she might let school kids scribble with crayons on the paintings in the Museum of Modern Art. “
    Could a cultural revolution against a corrupt elite really develop in America?
    Or would it be simply a T party revolution to restore the claimed entitlements of old boomers .
    Mao reckoned that a cultural revolution was not a dinner party!

    When Mao saw such a takeover of government by a growing elite class changing the economic system in China occurring, he encouraged mass rebellion for honest socialist government against the leaders of his own political party. He called for

    acultural revolution against the growing elites and corruption in the party ,what Mao called “The top party persons in authority taking the capitalist road”.A revolution
    against top Party leaders in his own party people like Deng out to restore capitalism.

    Such an event of mass democracy directed by a leader against his own political party
    has never been seen before or since in history. Although it has been said that during one period of the French Revolution the Guillotine devoured some of its own children.
    But was Mao so wrong to call for a cultural revolution ?

    Mao did not roll out the Guillotine and mostly relied on mass criticism and struggles to apply dunces caps to misleaders an bureaucrats and removing them from power and opportunities to corruptly enrich themselves at ordinary peoples expense.
    While MASS stuggles on a national scale by millions of people often got wild in the hands of an inexperienced youth , but party people like Deng mostly were able to keep kept their heads on their shoulders and make a comeback later.

    In the end the Maoist youth lost out and Deng and his supporters in the Party seized state power in a coup ,claiming that the cultural revolution against corruption was mere personality cult megalomania by Mao .

    The Dengists waved the red flag to defeat the socialist red flag.
    And claimed they would build a better socialism than Mao !
    Just as some on the American Right wave the constitution as a weapon to defeat the constitutional rights of people in a now Corporate State!

    After the coup Deng and his supporters within the communist party itself did
    indeed restore capitalism as Mao said they would turning themselves their families and clan members into a billionaire capitalist oligarchy selling Chinese cheap labour to the rest of the world they still call this socialism!


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