It’s not “linear thinking” which underlies the recourse to monetary rather than fiscal policy in the US, or any other failure of thought or imagination. The capitalists and the wealthy typically favour monetary easing because it stokes stock, bond, and property markets; state deficit spending, on the other hand, conjures up the spectre of higher taxes and increased capital and labour costs down the road without any assurance of offsetting increases in profits. As the US government is relatively less autonomous in relation to its powerful capitalist class than is the Chinese state to its smaller emergent one, it consequently has less freedom of action to more directly and forcefully intervene in the economy, even were there the will to do so. This thought seems to have eluded Roach.
On May 31, 2014, at 6:31 PM, Eugene Coyle <[email protected]> wrote: > Not to worry, the US is clearly into circular thinking. > > > On May 31, 2014, at 1:47 PM, Eubulides <[email protected]> wrote: > >> >> >> ________________________________ >>> From: [email protected] >> >> The US is about to become trapped in the perils of linear >>> thinking. >>> >> >> ========= >> >> This is an insult to traps and linear thinking. >> >> _______________________________________________ >> pen-l mailing list >> [email protected] >> https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
