According to the neoliberal myth, higher profits would lead to more investments and more jobs. In truth, higher profits lead to corporations buying back their stock and speculation on foreign currencies. The 2000s and 2010s were marked by low investments in the US, Germany and Europe. In truth, higher investments lead to higher profits.
Critical Swiss, Austrian and German economists alert us to the dysfunctioning finance capitalism, the triumph of the ideology of money out of thin air over long term necessities. The future cannot consist of exporting financial products, Coca Cola and rock’n’roll.
The only way to solve the three crises (mass unemployment, environment destruction and trade imbalance) is to break out of quantitative growth and embark on qualitative growth (cf. Hans Ch. Binswanger).
Unlike a chair, an idea can be shared by a whole people. You can make fish soup out of an aquarium but can’t make an aquarium out of fish soup! (Polish proverb quoted by Elmar Altvater in “Surveying Utopia”).
What is good for Volvo may not be good for Sweden. GE Capital proved more profitable and exciting than GE refrigerators! Corporate tax evasion in tax havens amounts to $1 trillion of lost revenue every year. Do corporations have only rights and not responsibilities?
Private losses becoming public losses is the greatest scandal. Simon Johnson spoke of a “quiet coup.” Bill Moyers says the state plays the errand boy for the banks.