ray
By the way, it seems to me that liberals / progressives often suggest that Keynesian-ism is the only economic policy available. But there's much more to economics then what Lord Keynes recommended 70 plus years ago. It's not only about how much government spends or taxes. It's also about spending efficiently, taxing efficiently, regulating efficiently, supporting productivity, developing effective trading policies, and creating a long term environment whereby businesses have a sense of the rules by which to engage
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All of this is true. But how has the American version of capitalism worked since the 80s?
The middle class is going backwards
Income and wealth have both shifted enormously to a very small percentage of people
Corporations now work to deleiver short term results so the management can cash in... for insrtance levereaged buyouts where corproations are laden with all kinds of debt, accounting practice indicates a profit and the management and/or leveraged buyout firms walk away.
Capitalism used to be about expanding th economy with productive businesses, manufacturing or providing services that customers want and need. Now, a large segment of it is leveraged buyouts that have no such ultimate aim, only the short term aim of creating enough short term profit that they can cash in....
Half of short term leveraged buyouts end in the bankruptcy of the target compnay, weighted down with debt that makes them effectively inoperable.
Essentially what has happened since 1980 is that the US has become a less equal society than it was in 1980. And as a result, less happy. There's more reasons than the one or two I've picked at here... but the point is that whats central to the malaise you sense isn't a failure of capitalism. Its a failure of a certain version of capitalism. One that didn't exist before 1980, unless you go back to the gilded age.... It was a return to the modus operendi of the Gilded Age that changed the direction of society and the shape of the economy.
Why is that important to realize? Well, lots of capitalist countries have less income inequality and healthier happier societies.
If Keynes isn't all there is, is it also worth looking at how other societieshave managed to deliver a better deal for more of their populace?
Can I recommend The Spirtit Level: Why More Equal Societies Almost Always do Better...
From the Spirit Level:
The authors point out that the life-diminishing results of valuing growth above equality in rich societies can be seen all around us. Inequality causes shorter, unhealthier and unhappier lives; it increases the rate of teenage pregnancy, violence, obesity, imprisonment and addiction; it destroys relationships between individuals born in the same society but into different classes; and its function as a driver of consumption depletes the planet's resources.
Wilkinson, a public health researcher of 30 years' standing, has written numerous books and articles on the physical and mental effects of social differentiation. He and Pickett have compiled information from around 200 different sets of data, using reputable sources such as the United Nations, the World Bank, the World Health Organisation and the US Census, to form a bank of evidence against inequality that is impossible to deny.
They use the information to create a series of scatter-graphs whose patterns look nearly identical, yet which document the prevalence of a vast range of social ills. On almost every index of quality of life, or wellness, or deprivation, there is a gradient showing a strong correlation between a country's level of economic inequality and its social outcomes. Almost always, Japan and the Scandinavian countries are at the favourable "low" end, and almost always, the UK, the US and Portugal are at the unfavourable "high" end, with Canada, Australasia and continental European countries in between.
http://www.guardian.co.uk/books/2009/ma ... irit-level