03 October 2012

Crises of capitalism

A visual presentation from The RSA of some of the reasons for the current economic crisis. The animation is by Cognitive Media.

2 comments:

  1. Been screaming at anyone who will listen that austerity will kill demand, and do nothing for sovereign debt, or even personal debt.
    Paranoid streak leads me to conclude that Gideon has a plan, he wants depression, not sure why, but his friends seem to be doing ok.
    Missed who the speaker was for the RSA, but lots of basic good stuff.

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    1. One of the problems with these debates is that everyone thinks that everyone else is crazy. As you say, austerity is self-defeating as it leads to more austerity, so the austerity proponents are probably crazy. However, government stimulus leads to ever higher public debt. Stimulus proponents never explain if, when or how this debt will ever be repaid, or the risks associated with higher interest rates over the full repayment period, so they may be crazy too. As far as I can see, no-one has articulated a credible solution for both jobs/demand and debt.

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