A Blank Spot on the Map

Sunday, January 06, 2013

But we've heard this all before. In 1933 the very people who's ideology crashed the economy then told us how grim an FDR future would be. We went on to grow the strongest economy the world had ever seen. The middle class blossomed and upward mobility was the norm. Then 1981 happened. THAT is what changed. A distinct policy change and an anti-government sentiment. After the 1930's GDP skyrocketed and debt to gdp came consistently down. Then after 1981 debt to gdp skyrocketed and GDP has fallen off. The problem has nothing to do with to much spending it has to do with financialization of our economy and massive rises in income inequality. Fix our finance system and increase middle class wages and we will move on. Obama is far more likely to pursue those polices and that is the basis of my optimism. My pessimism rises from the incredible power  of the banks to fill fallen wages with financed debt and then to get bankruptcy laws changed such that a person could have 25% of their future earnings INDENTURED to the banks. 


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