“A balance recession is more than a temporary slump of the economy. During a balance recession, private economic actors try to reduce their debts. Debts are minimized instead of businesses taking credits to finance production and maximize profits… The cheap money seeps out on the financial markets…
The labor market does not function like other markets. Supply and demand are not independent of one another…
Falling wages bringing more employment is a mirage. Falling wages did not lead to more employment – as claimed for decades.
The economic signs point to storm but it’s not too late for a conversion. That is the appeal of five noted economists from three continents in their Manifesto “Act Now!”
to read the articles by Markus Mugglin and Albrecht Mueller published in April 2013, click on
http://www.indybay.org/newsitems/2013/05/10/18736592.php
