Re: [Pen-l] The fundamental crisis response. was Ecological creditcrunch

To: "Progressive Economics" <pen-l@xxxxxxxxxxxxxxxxxx>
Subject: Re: [Pen-l] The fundamental crisis response. was Ecological creditcrunch
From: "Jim Devine" <jdevine03@xxxxxxxxx>
Date: Thu, 30 Oct 2008 19:05:13 -0700
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Carrol Cox wrote:
>> Volcker wanted standards of living to decline in order to get MORE
>> growth. He had no intention at all of slowing or stopping growth. ...

raghu:
> That seems a bit contradictory - how can you get more growth by
> putting everyone on an austerity program?

I don't think Carrol meant "everyone" here. Instead, he meant the
standard of living of the working class. All else constant, falling
real wages mean higher profits, which Volcker wanted.

In the long run, it's hard to have GDP growth a big economy based on
stagnant real wages (unless there are speculative bubbles, a lot of
luxury spending, an export boom, or fiscal stimulus), but I don't
think Volcker and his ilk are that far-sighted.
-- 
Jim Devine /  "Nobody told me there'd be days like these / Strange
days indeed -- most peculiar, mama." -- JL.
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References:
- [Pen-l] Ecological credit crunch
  - From: Louis Proyect
- [Pen-l] The fundamental crisis response. was Ecological credit crunch
  - From: Eugene Coyle
- Re: [Pen-l] The fundamental crisis response. was Ecological credit crunch
  - From: raghu
- Re: [Pen-l] The fundamental crisis response. was Ecological creditcrunch
  - From: Carrol Cox
- Re: [Pen-l] The fundamental crisis response. was Ecological creditcrunch
  - From: raghu

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- Re: [Pen-l] The fundamental crisis response. was Ecological credit crunch, (continued)
- [Pen-l] López Obrador's speech at Mexico's chamber of deputies, Julio Huato Tue 28 Oct 2008, 21:58 GMT

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