The end of hegemony view, more specifically in the new multi-polar world the U.S. cannot restore strong economic growth including wage growth, dovetails with a conservative view that with open economies and international competition -- globalization -- a viable welfare state is impractical. That doesn't mean it's wrong, but re: the PK column, both views seem to gloss over the potential for internal demand to generate growth and to overstate the mobility of capital. The U.S. experienced pretty good growth in the late 90s notwithstanding these factors. Of course, this was generated by the tech bubble, but there are less dodgy ways to generate aggregate demand.
So to me it is not obvious that 'broadly shared prosperity' is not possible, under suitable political conditions. The tougher nut to crack is the transformation to a sustainable economy. In re: the latter, we don't seem to be running out of fossil fuel for some time, we are however progressively fouling our nest with the extraction and burning of it. There is also the inherent instability of the economy, though this puts more of a premium on a strengthened social insurance state. On Wed, Nov 21, 2012 at 6:05 PM, Marv Gandall <[email protected]> wrote: > > On 2012-11-21, at 8:14 AM, Michael Nuwer wrote: > > > ...Krugman seems to imply that a return to higher taxes and > > higher wages would be compatible with a return to economic prosperity. > > He is generally unwilling to explore the argument that prosperity in > > 1950s and 1960s owes itself to the hegemonic power of the United States, > > and so made higher taxes and higher wages possible. I'm not sure that > > that possibility exists today, which leaves Krugman's argument a bit > > hollow. > > Much hope and capital has been invested in shale oil and gas, seen as the > new technological advance which will revive US manufacturing and restore > its economic hegemony. Others, not only on the left, are skeptical it will > have much impact other than an adverse environmental one. > > > http://www.nytimes.com/2012/11/13/business/energy-environment/report-sees-us-as-top-oil-producer-in-5-years.html?_r=0&adxnnl=1&partner=rss&emc=rss&adxnnlx=1353538840-Nj2tiMzcRgRzsOnH7kGnpw > > > http://www.guardian.co.uk/environment/2012/nov/15/shale-gas-freedom-security-trap?intcmp=239 > > > http://online.wsj.com/article/SB10000872396390444549204578020602281237088.html?mod=rss_markets_main > > > http://www.nakedcapitalism.com/2012/11/shale-gas-will-be-the-next-bubble-to-pop.html > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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