Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
All I ever claimed is that resource constraints arguably triggered the current crisis

The trigger is totally irrelevant for all practical purposes. If it hadn't been one trigger, it would have been another, because the underlying imbalances were not sustainable. But for what it's worth, the trigger for the current European crisis seems to have been the collapse of Eurodollar liquidity following the American credit freeze in 2008.

And because the crisis is actually complex and multiform

It actually isn't. It's a very, very simple crisis, that can be summed up in a two sentences: Wage suppression is the retarded brother of protectionism. And inequality breaks industrial economies.

The solutions are equally simple: Inequality needs to go back down to 1970 levels, and wages need to go back up to 67 % of GDP across the whole EU. There is absolutely nothing complicated about this.

Yeah, solving this crisis will mean that we will have to deal with resource constraints that are currently made less pressing by the fact that we are busy demolishing the factories that would use those resources to make stuff. But that will be then, and this is now.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Jan 30th, 2012 at 06:33:20 AM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series