The New Normal: Demand, Secular Stagnation and the Vanishing Middle-Class

By Servaas Storm, The Great Financial Crisis of 2008 deeply scarred the U.S. economy, bringing nine dire years of economic stagnation, high and rising inequalities in income and wealth, steep levels of indebtedness, and mounting uncertainty about jobs and incomes. Big parts of the U.S. were hit by elevated rates of depression, drug addiction and ‘deaths … More The New Normal: Demand, Secular Stagnation and the Vanishing Middle-Class

New Book by Yanis Varoufakis: Adults In The Room – My Battle With Europe’s Deep Establishment

From Penguin: Varoufakis sparked one of the most spectacular and controversial battles in recent political history when, as finance minister of Greece, he attempted to re-negotiate his country’s relationship with the EU. Despite the mass support of the Greek people and the simple logic of his arguments, he succeeded only in provoking the fury of … More New Book by Yanis Varoufakis: Adults In The Room – My Battle With Europe’s Deep Establishment

Austerity never ends: Orthodox Economists say wages are too high

Originally posted on Systemic Disorder:
No, you can’t really make this stuff up: Orthodox economists continue to tell us that the reason for ongoing economic stagnation is that wages and unemployment benefits are too high. Yes, that’s right. You haven’t suffered enough. Given that orthodox economics (or “neoclassical” or Chicago School, if you prefer alternate…

Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

By Yves Smith, The Financial Times has a generally good update on the state of the student debt bubble in the US. The article interesting not just for what it says but also for what goes unsaid. I’ll recap its main points with additional commentary. Note that many of the underlying issues will be familiar … More Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

New book: Crisis and the Failure of Economic Theory – The Responsibility of Economists for the Great Recession

By Giancarlo Bertocco. From Edward Elgar: Economists have rightly been criticized for not having foreseen the crisis that exploded in 2007–2008. As Giancarlo Bertocco eloquently argues, responsibility does indeed rest heavily on their shoulders. By developing a theory which excluded the possibility that a catastrophic crisis could ever happen, the economics profession has justified decisions … More New book: Crisis and the Failure of Economic Theory – The Responsibility of Economists for the Great Recession