Search Results for 'The American economy is imploding'
Topic: RIP The American Economy
Jimmy Dore and Dylan Ratigan discuss the article that I’ve posted.
Coronavirus — or more accurately — the lack of response to it will probably finish off what’s left of the American economy. America will end up a country with permanently lower levels of all the following: employment, income, savings, trust, happiness, assets, and so forth. America was already in the process of becoming something very much like a poor country, with the failed politics of one, too — but Coronavirus will accelerate and finalize America’s grim transformation into poverty, paralysis, and collapse.
I know that sounds improbable, maybe even absurd, to some. I don’t much like writing in such terms myself. So let me spell out just how and why.
These shocking, unreal unemployment numbers are like the shockwave of a great tsunami, or the tremors that signal an earthquake spiking off the Richter scale. They’re a beginning, something like a plume of smoke to be followed by a deafening explosion.
Why? The logic of depression is simple — Keynes discovered it a century ago. It involves two things: money, and confidence. An economy undergoes a shock — a stock market crash, a natural calamity, or, in this case, a pandemic. I lose my job. I stop spending. So do my neighbours. Our local businesses — who usually exist on the margin, with little in reserve — begin to go shutter their doors, as a small but crucial number of customers stays away. That causes yet another wave of unemployment, which causes yet another wave of bankruptcy, and so on. Until, at last, the vicious spiral has engulfed the whole economy.
By that point, five transformations have happened — that usually spell ruin for a generation or more.
The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.....Martin Luther King '63