Was the World Economic Crisis Avoidable?

One Response to "Was the World Economic Crisis Avoidable?"

  1. benleet   August 29, 2013 at 1:25 pm

    In the future democracies will have to be informed economically. The choice will be revolve around the problem of full employment and harmful under employment, high inequality and low inequality. As the EPI.org has shown productivity gains since 1973 have increased by 80% while wage income gains for median workers have increased by 10% : http://stateofworkingamerica.org/chart/swa-wages-… and see the next graph in series — How can workers afford the value of what they produce when profits or the surplus of production is distributed lop-sidedly? To create full employment for all wishing to work in a modern collective/corporate work place, wage income will have to be maintained at a high level. Markets are incapable of maintaining this wage level, they tend to force the opposite, high inequality. In other words, so-called free markets are destructive to societal health when left to manage all the affairs of the economy. Markets must have minimum standards in wages and in foreign trade rules, and perhaps government jobs will become a greater portion of all jobs (it stands at 15% today). This is not just sustainable, it is requisite. This allows for mass production with economies of scale. Otherwise we have economies like Mexico where 60% of the workers receive less than $15 a day (around $3500 a year), while their GDP per capita is around $14,000. You have societies hardly able to buy food for themselves, massive malnutrition and extreme inequality.