Monday, August 15, 2011

Afirma Roubini

Karl Marx had it right, at some point capitalism can self-destroy itself, because you cannot keep on shifting income from labour to capital without not having an excesse capacity and a lack of agregate demand. And that's what happening. We thought that markets work, and they are not working. What is individually rational, every firm has to survive and thrive in slashing labour costs even more, ignores that my labour costs are someone else income and consumption. That's why it's a self-destructive process. You cannot resolve this problem with liquidity. When there is too much debt, either you grow out of it or you save out of it. But If everyone spends less and saves more in the private and public sector you have the Keynesian paradox of thrift. And you can have a depression.

(Nouriel Roubini, in "The Wall Street Journal")

1 comment:

  1. Helena Sacadura CabralAugust 15, 2011 at 10:39 PM

    Caro Alcipe
    Este Roubini tem-me dado cabo da cabeça cada vez que o leio, porque tudo o que ele diz está certo. Mas depois vem a política e...é o que se vê!