One view from the New School


Contributing no startling insights, but still worth a read, is Duncan Foley’s recent talk on the prospects for economic recovery, and the strength of US global leadership:

[From] a global perspective there is simply not enough demand generation to support continued rapid growth of the emerging-markets economies and provide politically acceptable levels of job creation in the advanced capitalist economies… While the U.S. still claims world economic leadership, it finds itself in a position as a result of the financial crisis of 2007-8 where it cannot create sufficient world aggregate demand through its own policies, and, ironically, is equally powerless to divert aggregate demand to its own stagnating economy. These problems are inherent in the very institutions that support U.S. hegemony… Inadequate world aggregate demand poses serious threats to continued economic cooperation among the advanced capitalist countries, as or more serious than the European imperial powers’ panic over control of natural resources posed in the period before the first World War.

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