> But high unemployment makes it far more likely that banks will need to be 
> bailed out. If unemployment were 5% and GDP growth was 3%, there'd be no 
> financial crisis. And it's not like we're anywhere near the trigger point 
> at which full employment becomes "dangerous," by increasing the bargaining 
> power of labor vs. capital. So I don't buy this explanation.
>
> Doug

----------

I don't know. It sure makes sense to me, as long as I believe the people 
running banks and their elite customers really don't care what happens to 
the rest of us. I have to believe they have no long term vision at all. I 
have to believe they believe they are immune to destruction.

The other explanation is that austerity is a deliberate policy to take over 
government services through privativization, forcing government to sell off 
its lands, institutions, etc that can then be converted to profit making 
works of some kind.

Some combination must be going on.

CG 

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