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View Diary: The failure of Austerity (144 comments)

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  •  Exactly. The diarist assumes leaders want recovery (13+ / 0-)

    when deflationary depressions are significantly better for the upper class than economic expansionary periods.  

    Here's a list of the benefits:

    1. Deflationary depressions expand the labor pool, pushing down wages and increasing the ratio of real value taken from goods produced taken by Capital.

    2. Property owners on shaky ground lose what the have to creditors, simultaneously increasing the number of people who need to rent and the amount of property held by the rentier (creditor) class.  So they can get more of something for no personal labor, the whole point of rent seeking behavior.

    3.  Because the primary source of government capital is private lending, and in Europe especially lending by private banks, banks (entities of by and for the creditor class) demand and get public assets.  So the creditors can take control of essential services, like water and power services, increase the % of the economy going to economic rents, and once again get something for nothing.

    4.  By cutting social services through the politicians they own, the creditor class can make people more desperate for employment in general, and employers' power can creep into people's daily lives in more serious ways.  People are occasionally fired for smoking cigarettes at home.  In the US defense industry employees are contractually obligated to report it if they see a fellow employee drunk at a bar, a violation of the code of conduct.  In this way the creditor class creates a private government with no accountability to the governed, and slowly replaces entire democracy with a new feudalism.

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