recession
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Energy: the recession trigger?
There is confusion among mainstream economists and policy-makers on whether the major economies are heading for a recession, or are already in a recession; or will avoid one altogether. The majority view, at least in the US, is the latter. This optimistic view argues that, while inflation rates are high, they will start to fall… Continue reading
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Capitalism’s fallen angels
In several previous posts, I have highlighted what are called ‘zombie’ companies (companies whose regular profits do not even cover the cost of servicing their outstanding debts) and so must, to paraphrase former BoE governor Mark Carney, depend on the kindness of their creditors”. An OECD study found that such zombies take up a frighteningly large part of the economy.… Continue reading
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What Lies Ahead
On July 6, 2020 I posted my extended view and analysis why the 3rd quarter US GDP would falter–and lead to a W-shape recovery, as it typical of all Great Recessions. The current recession’s scenario was compared with 1929-30 and 2008-09, and 8 reasons were given why the US current economic rebound (not recovery) would… Continue reading
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Why 3rd Quarter US Economic Rebound Will Falter
The reopening of the US economy in June—and some states as early as May—has produced a modest economic ‘rebound’. But rebound is not to be confused with economic recovery. Continue reading
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Coronavirus Will Require Us to Completely Reshape the Economy
The Covid-19 coronavirus pandemic is a far more profound event for the global economy than the great financial crisis of 2008-9. It will have more significant consequences for the simple reason that it is operating at a more fundamental level of our economic relationships than the 2008-9 crash ever did. Continue reading
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A global manufacturing recession
As we enter October, the global recession is with us – in manufacturing. The PMI manufacturing activity indexes for most of the major economies are below 50, the threshold for expansion or contraction. These are only surveys of corporate managers asking them about production, sales, employment etc. But PMIs have been reasonably accurate indicators of… Continue reading
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Global slump: the trade and technology trigger by michael roberts
Despite all the optimistic talk by President Trump about the state of the US economy, the latest data on economic activity and industrial production suggest that America is joining Europe and Japan in a sharp slowdown as we enter the second half of 2019. And this is at a time when the trade and technology… Continue reading
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Capitalism: A delicate moment
14 April 2019 — Michael Roberts The IMF-World Bank meeting in Washington this weekend revealed again that the world economy is slowing down and the prospect of an outright recession is getting much higher. The IMF economists cut their outlook for global growth to the lowest since the global financial crisis of 2009 amid a Continue reading
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The fantasy world of the Long Depression by michael roberts
This week, the US Federal Reserve Bank decided to stop raising its policy interest rate for the rest of 2019. The Fed started hiking rates from near zero back in late 2016 on the grounds that the Long Depression (in economic growth, investment and employment in the US and in other major economies) was over. … Continue reading
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Video: The Economic Crisis & Crisis Theory II
This panel explored causes of the Great Recession and the continuing economic sluggishness since the recession’s ended, as well as how the left can respond to this situation. In keeping with the conference theme, panelists addressed what different analyses and theories imply about the kind of socioeconomic change that is called for. Continue reading
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Workers in Britain suffer the greatest fall in wages since the 1930s By Robert Stevens
The UK is experiencing the deepest and most protracted economic downturn in a century. The decline in wages is even greater than that resulting from the Great Depression of the 1930s. Continue reading
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Worst cuts in wages for UK workers in ‘deepest recession since WWII’, IFS shows
Between 2010 and 2011, 70 per cent of employees who stayed in the same job fronted real wage cuts, while a third of those workers faced nominal wage freezes or cuts (12 per cent experienced freezes and 21 per cent experienced cuts). Continue reading
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Video: Privatizing Europe
Nick Buxton: A massive European fire sale is one way finance is using the crisis to entrench neo-liberalism (inc. transcript) Continue reading
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Video: Study Debunking Austerity Research Sparks Wide Reaction
Bob Pollin (Co-Author of Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff): Deficit Hawks still defend conclusions of a study that contained spreadsheet errors and weighted selected countries in an inappropriate way; led to incorrect theory about public debt and growth (Inc. transcript). Continue reading
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The Wrong Economic Prescriptions: Deeper Austerity as a “Solution” to Austerity By Kevin Zeese and Margaret Flowers
As the economy shows signs of recession, the leeches return. Alan Simpson and Erskine Bowles have issued a new report calling for even deeper austerity. It is not what the economy needs as it stagnates and sputters toward a possible new collapse. Their report combined with President Obama’s State of the Union, the sequestration and… Continue reading
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A Tale of Two Economies: Skyrocketing Stock Market for the Rich, Devaluation of Work for the Rest
The rich are making out like bandits in the booming Wall Street economy that is based on profits squeezed out of firing workers, lowering net wages (adjusted for inflation), and outsourcing jobs to exploited labor overseas. There is no crisis in the top 1%; there is only increasing wealth. In that second economy, the financial… Continue reading
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EU Crisis: A pact of two parasites
The European Union took another step along the road to a capitalist united states of Europe at the eurozone summit in the early hours of yesterday morning. Continue reading
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Video: The Super Committee and the Attack on Labor By Michael Hudson
Michael Hudson: Austerity and recession used to lower wages Continue reading
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Portugal: General Strike 24 November 2011
Following the agreement signed with the IMF/EU/ECB Troika, Portugal is confronted with a new and more severe austerity programme, unprecedented since the inauguration of democracy. Continue reading
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General Strike in Portugal in 24 November
With a deeper recession, we will enter a destructive cycle of austerity policies, added recession and higher debt, repeating what is already happening, namely in Greece, with disastrous outcomes for the workers, people and country, which are very visible today.” Continue reading
The New Dark Age 