Politics has fought the symptoms of the great crisis with banking- and economic packages while its systemic causes remain untouched… The hardest phase of the great crisis is ahead of us, not behind us. All sectors try to safeguard their position through spending cuts…
As Stephan Schulmeister explains, the financial sector must be shriveled and investments in the real economy stimulated. Albert Einstein warned, the one thing we learn from history is that we don’t learn from history. If we refuse to learn from history and face the contradictions and fraud of the financial sector, we become accomplices to the next bubble and intractable future crises.
“Breaking out of the downward dynamic and an age of austerity requires a political change to a “New Deal” as a concrete alternative concept. To promote the transition to real capitalist framing conditions, the “New Deal” gives greater priority to activities in the real economy than the activities of “financial chemistry.” Simultaneously the overall strategy concentrates on those tasks that were systematically ignored in the neoliberal age. Their mastery would enormously increase real value creation and permanently improve conditions for a “good life,” according to Schulmeister.
In the middle of a grave crisis, an efficient macro-economic fiscal policy must redistribute income from the household sector to the state so private savings decline but not consumption. At the same time short-term speculative activities should be limited to the financial markets and long-term real economic activities of businesses promoted. The measures of the “New Deal” can be financed by contributions of high and the highest incomes and assets and by a higher taxation on financial transactions and financial assets.”
to read Joachim Bischoff’s “Alternatives to Stagnation and Depression” published 7/23/2013, click on
Flassbeck, Heiner, “The Incredible Lightness of Financial Markets,” July 2013
Konicz, Thomasz. “Addicted to Liquidity Injections.” July 2013
Konicz, Thomasz, “The Crisis Explained,” December 23, 2011
Schulmeister, Stephan, “From Real Capitalism to Finance Capitalism, 11pp, May 22, 2013