Unemployment And Economy Quotes

The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.

But the economic meltdown should have undone, once and for all, the idea of poverty as a personal shortcoming or dysfunctional state of mind. The lines at unemployment offices and churches offering free food includes strivers as well as slackers, habitual optimists as well as the chronically depressed. When and if the economy recovers we can never allow ourselves to forget how widespread our vulnerability is, how easy it is to spiral down toward destitution.

Thirty years of "crisis," mass unemployment, and flagging growth, and they still want us to believe in the economy. . . . We have to see that the economy is itself the crisis.

He who makes $25,000 annually through passive income is more enviable than he who earns $100,000 annually through a salary.

The world needs more laws. I say this only because I believe the world needs more lawyers. If everybody was a lawyer, there’d be no unemployment, because the economy would be like a great lawsuit factory. Farmers in this utopia wouldn’t raise crops, they’d raise suspicion.

Those who had the remaining jobs would have to buy the cheapest stuff possible with their drastically reduced wages, and in order for the manufacturers to keep that stuff cheap, it would have to be made by fifteen-year-olds in China.

The first enslaving illusion is the idea that people are born to be consumers and that they can attain any of their goals by purchasing goods and services....What people do or make but will not or cannot put up for sale is as immeasurable and as invaluable for the economy as the oxygen they breathe.

But the economy's out of control. Money just doesn't need human beings anymore. Most of us only get in the way.

For their never-ending endeavours to obtain or retain wealth, countries desperately need companies, because they—unlike most human beings—have the means of production, and human beings, because they—unlike all companies—have the means of reproduction.

U.S. military spending, which consumes half of all discretionary spending, has had a profound social and political cost. Bridges and levees collapse. Schools decay. Domestic manufacturing declines. Trillions in debt threaten the viability of the currency and the economy. The poor, the mentally ill, the sick, and the unemployed are abandoned. Human suffering is the price for victory, which is never finally defined or attainable.

Inevitably, people tell me that poor folks are lazy or unintelligent, that they are somehow deserving of their poverty. However, if you begin to look at the sociological literature on poverty, a more complex picture emerges. Poverty and unemployment are part and parcel of our economic order. Without them, capitalism would cease to function effectively, and in order to continue to function, the system itself must produce poverty and an army of underemployed or unemployed people.

Is it really necessary to reward the CEO with several million dollars? Why isn’t it logical or common sense to pay the minimum-wage employee another quarter, give a quarterly fifty-dollar bonus, or even provide a two-hundred-dollar gas gift card?

Almost as an article of faith, some individuals believe that conspiracies are either kooky fantasies or unimportant aberrations. To be sure, wacko conspiracy theories do exist. There are people who believe that the United States has been invaded by a secret United Nations army equipped with black helicopters, or that the country is secretly controlled by Jews or gays or feminists or black nationalists or communists or extraterrestrial aliens. But it does not logically follow that all conspiracies are imaginary. Conspiracy is a legitimate concept in law: the collusion of two or more people pursuing illegal means to effect some illegal or immoral end. People go to jail for committing conspiratorial acts. Conspiracies are a matter of public record, and some are of real political significance. The Watergate break-in was a conspiracy, as was the Watergate cover-up, which led to Nixon’s downfall. Iran-contra was a conspiracy of immense scope, much of it still uncovered. The savings and loan scandal was described by the Justice Department as “a thousand conspiracies of fraud, theft, and bribery,” the greatest financial crime in history. Often the term “conspiracy” is applied dismissively whenever one suggests that people who occupy positions of political and economic power are consciously dedicated to advancing their elite interests. Even when they openly profess their designs, there are those who deny that intent is involved. In 1994, the officers of the Federal Reserve announced they would pursue monetary policies designed to maintain a high level of unemployment in order to safeguard against “overheating” the economy. Like any creditor class, they preferred a deflationary course. When an acquaintance of mine mentioned this to friends, he was greeted skeptically, “Do you think the Fed bankers are deliberately trying to keep people unemployed?” In fact, not only did he think it, it was announced on the financial pages of the press. Still, his friends assumed he was imagining a conspiracy because he ascribed self-interested collusion to powerful people. At a World Affairs Council meeting in San Francisco, I remarked to a participant that U.S. leaders were pushing hard for the reinstatement of capitalism in the former communist countries. He said, “Do you really think they carry it to that level of conscious intent?” I pointed out it was not a conjecture on my part. They have repeatedly announced their commitment to seeing that “free-market reforms” are introduced in Eastern Europe. Their economic aid is channeled almost exclusively into the private sector. The same policy holds for the monies intended for other countries. Thus, as of the end of 1995, “more than $4.5 million U.S. aid to Haiti has been put on hold because the Aristide government has failed to make progress on a program to privatize state-owned companies” (New York Times 11/25/95). Those who suffer from conspiracy phobia are fond of saying: “Do you actually think there’s a group of people sitting around in a room plotting things?” For some reason that image is assumed to be so patently absurd as to invite only disclaimers. But where else would people of power get together – on park benches or carousels? Indeed, they meet in rooms: corporate boardrooms, Pentagon command rooms, at the Bohemian Grove, in the choice dining rooms at the best restaurants, resorts, hotels, and estates, in the many conference rooms at the White House, the NSA, the CIA, or wherever. And, yes, they consciously plot – though they call it “planning” and “strategizing” – and they do so in great secrecy, often resisting all efforts at public disclosure. No one confabulates and plans more than political and corporate elites and their hired specialists. To make the world safe for those who own it, politically active elements of the owning class have created a national security state that expends billions of dollars and enlists the efforts of vast numbers of people.

Fear is different; it remains; it causes prejudice.

In the days when money was backed by its face value in silver or gold, there were limits to how much wealth could flow around the world. Today, it's virtual money that the bank lends into existence on a computer screen. "And unless the economy continually expands, there is no new flow of money to pay back that money, plus interest." . . . "As it stands now, if banks start loaning money more slowly than they collect debts, the quantity of money in the economy goes down, and it's impossible to pay back debts. So we get defaults on houses . . . our economy plunges into misery and unemployment. Under our current monetary system, the only alternative to that is endless growth. So one absolute thing we have to change is the whole nature of the monetary system. . . . we deny banks the right to create money." . . . There's a challenge with that solution, he admits. "You're trying to take the right to create wealth away from some of the wealthiest people on the planet.

The impoverished families of the long-term unemployed strained to the point of dysfunction, communities deprived of viable economies, interrupted educations, lost skills: these and many more results of capitalism’s crisis will put difficult demands on governments for years. On the one hand, they will aggravate social problems that impose costs on governments.

The employment figures released by federal government agencies are fraudulent. Real unemployment in the United States is not under 7 percent; it’s closer to 37 percent, despite what the White House, the Fed, and the U.S. Treasury try to tell you. The Misery Index, a measure of how Americans feel about the economy, is over 14 percent, not at the 8 percent level the government claims.

The state of perpetual emptiness is, of course, very good for business. The feasts of consumption sustain the economy, keep up the volume in the stock markets, employ the unemployable, excite the fevers of speculation and stimulate the passion for political and sexual novelty.

As Jeffrey Reiman points out in the Rich Get Richer and the Poor Get Prison, the criminal justice system excuses and ignores crimes of the rich that produce profound social harms while intensely criminalizing the behaviors of the poor and nonwhite, including those behaviors that produce few social harms. When the crimes of the rich are dealt with, it’s generally through administrative controls and civil enforcement rather than aggressive policing, criminal prosecution, and incarceration, which are reserved largely for the poor and nonwhite. No bankers have been jailed for the 2008 financial crisis despite widespread fraud and the looting of the American economy, which resulted in mass unemployment, homelessness, and economic dislocation.

Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S.-caused inflation through subsidies, tariffs and capital controls; the currency war is expanding fast.

The official line is that, after the war, women couldn't wait to leave the offices and assembly lines and government agencies. But the real story was that the economy couldn't have men coming home without women going home, not unless it wanted a lot of unemployed vets. So the problem became unemployed women. "How you gonna keep us down on the farm after we've seen the world,"' she ad-libs to the old World War I tune. 'Enter the women's magazines, and cookbook publishers, and all these advertising agencies carrying on about the scourge of germs in the toilet bowl, and scuffs on the kitchen floor, and, my favorite, house B.O. Enter chicken hash that takes two and a half hours to prepare. I can just hear them sitting around the conference tables. 'That'll keep the gals out of trouble.

I am not a capitalist in the simplistic left/right sense. But I do believe in the power of the global free-market economy and in using capitalist tools. I believe in the power of teh free market and the power of capital in the marketplace. I also believe that providing unemployment benefits is not the best way to address poverty. The able-bodied poor don't wan tor need charity. The dole only increases their misery, robs them of incentive and, more important, of self-respect.

In an exchange economy everybody’s money income is somebody else’s cost. Every increase in hourly wages, unless or until compensated by an equal increase in hourly productivity, is an increase in costs of production. An increase in costs of production, where the government controls prices and forbids any price increase, takes the profit from marginal producers, forces them out of business, means a shrinkage in production and a growth in unemployment. Even where a price increase is possible, the higher price discourages buyers, shrinks the market, and also leads to unemployment. If a 30 percent increase in hourly wages all around the circle forces a 30 percent increase in prices, labor can buy no more of the product than it could at the beginning; and the merry-go-round must start all over again.

casual acceptance of—even commitment to—human deprivation, to unemployment, inflation, and disastrously reduced living standards. This is even seen as essential therapy: out of the experience of unemployment and hunger will come a new and revitalized work ethic, a working force eager for the discipline of free enterprise.

War is a marvellous stimulus for the economy of a failing country. It takes young men out of unemployment and creates wealth for Arms dealers, construction companies and medical and drugs corporations. Said country can rape thieve and pillage with complete justification. World War III - coming to a TV screen near you soon.

As I see it today, Hitler and Goebbels were in fact molded by the mob itself, guided by its yearnings and its daydreams. Of course, Goebbels and Hitler knew how to penetrate through to the instincts of their audiences; but in the deeper sense they derived their whole existence from these audiences. Certainly the masses roared to the beat set by Hitler's and Goebbels' baton; yet they were not the true conductors. The mob determined the theme. To compensate for misery, insecurity, unemployment, and hopelessness, this anonymous assemblage wallowed for hours at a time in obsessions, savagery and license. The personal unhappiness caused by the breakdown of the economy was replaced by a frenzy that demanded victims. By lashing out at their opponents and vilifying the Jews, they gave expression and direction to fierce primal passions.

Since President Trump was elected, the economy has added three million jobs. In fact, today there are more jobs available than there are unemployed. That’s resulted in the lowest unemployment rate in seventeen years. The stock market has roared to new highs despite the Federal Reserve raising interest rates five times since Trump’s election.

Electricity, shelter, and a safe place to sleep . . . trump the need to preserve your credit score, or purchase a new gizmo.

The goal of the future is full unemployment, so we can play. That's why we have to destroy the present politico-economy system.

Three years ago, I began writing this novel about hard times in America: the worst environmental disaster in our history; the collapse of the economy; the effect of massive unemployment. Never in my wildest dreams did I imagine that the Great Depression would become so relevant in our modern lives, that I would see so many people out of work, in need, frightened for the future.

On Rachel's show for November 7, 2012: Ohio really did go to President Obama last night. and he really did win. And he really was born in Hawaii. And he really is legitimately President of the United States, again. And the Bureau of Labor statistics did not make up a fake unemployment rate last month. And the congressional research service really can find no evidence that cutting taxes on rich people grows the economy. And the polls were not screwed to over-sample Democrats. And Nate Silver was not making up fake projections about the election to make conservatives feel bad; Nate Silver was doing math. And climate change is real. And rape really does cause pregnancy, sometimes. And evolution is a thing. And Benghazi was an attack on us, it was not a scandal by us. And nobody is taking away anyone's guns. And taxes have not gone up. And the deficit is dropping, actually. And Saddam Hussein did not have weapons of mass destruction. And the moon landing was real. And FEMA is not building concentration camps. And you and election observers are not taking over Texas. And moderate reforms of the regulations on the insurance industry and the financial services industry in this country are not the same thing as communism. Listen, last night was a good night for liberals and for democrats for very obvious reasons, but it was also, possibly, a good night for this country as a whole. Because in this country, we have a two-party system in government. And the idea is supposed to be that the two sides both come up with ways to confront and fix the real problems facing our country. They both propose possible solutions to our real problems. And we debate between those possible solutions. And by the process of debate, we pick the best idea. That competition between good ideas from both sides about real problems in the real country should result in our country having better choices, better options, than if only one side is really working on the hard stuff. And if the Republican Party and the conservative movement and the conservative media is stuck in a vacuum-sealed door-locked spin cycle of telling each other what makes them feel good and denying the factual, lived truth of the world, then we are all deprived as a nation of the constructive debate about competing feasible ideas about real problems. Last night the Republicans got shellacked, and they had no idea it was coming. And we saw them in real time, in real humiliating time, not believe it, even as it was happening to them. And unless they are going to secede, they are going to have to pop the factual bubble they have been so happy living inside if they do not want to get shellacked again, and that will be a painful process for them, but it will be good for the whole country, left, right, and center. You guys, we're counting on you. Wake up. There are real problems in the world. There are real, knowable facts in the world. Let's accept those and talk about how we might approach our problems differently. Let's move on from there. If the Republican Party and the conservative movement and conservative media are forced to do that by the humiliation they were dealt last night, we will all be better off as a nation. And in that spirit, congratulations, everyone!

Maputo was much praised as a desirable destination, but it was a dreary, beat-up city of desperate people who had cowered there while war raged in the provinces for twenty-five years, destroying bridges, roads, and railways. Banks and donors and charities claimed to have had successes in Mozambique. I suspected they invented these successes to justify their existence; I saw no positive results of charitable efforts. But whenever I expressed skepticism about the economy, the unemployment, the potholes, or the petty thievery, people in Maputo said, as Africans elsewhere did, 'It was much worse before.' In many places, I knew, it was much better before. It was hard to imagine how much worse a place had to be for a broken-down city like Maputo to seem like an improvement.

Since the President’s 2016 election, the economy has added over 6.7 million jobs—more than the combined populations of Wyoming, Vermont, Alaska, North Dakota, South Dakota, Delaware, Rhode Island, and Montana in 2018. Additionally, this total is 4.8 million more jobs than the Congressional Budget Office projected would have been created in its final forecast before the 2016 election. . . . Most notably, the unemployment rate for African Americans reached a new low of 5.4 percent, falling 2.6 percentage points since President Trump’s election.”12 For anyone with a brain, that is a big deal.

Self-preservation—this is your new focus. The only obligation of today is to preserve the breath of tomorrow. Then, once footing is regained, you can begin to fulfill debt obligations. Debt is hindsight.

The Great Recession and its continuing aftermath have left many twenty-somethings feeling naïve, even devastated.Twenty-somethings are more educated than ever before, but a smaller percentage find work after college. Many entry-level jobs have gone overseas, making it more difficult for twenty-somethings to gain a foothold at home. With a contracting economy and a growing population, unemployment is at its highest in decades. An unpaid internship is the new starter job. About a quarter of twenty-somethings are out of work and another quarter work only part-time. Twenty-somethings who do have paying jobs earn less than their 1970s counterparts when adjusted for inflation.

However, inflation and unemployment have affected the shopping centers at least as much as the rest of the economy, so that here and there among the brave enticements stood a storefront dark, silent, its windows black, its forehead nameless, its prospects bleak. The survivors seemed to beam the more brightly in their efforts to distract attention from their fallen comrades, but Dortmunder could see them. Dortmunder and a failed enterprise could always recognize one another.

So the Cassandras who warned that the thirty-five-hour week would send the French economy into instant meltdown have been proved wrong. The gross domestic product has grown, and unemployment, though still above the EU average, has fallen. Productivity also remains high. Indeed, some evidence suggests that many French workers are more productive now. With less time on the job, and more leisure to look forward to, they make greater efforts to finish their work before clocking off.

The individualist insists that drastic depressions are the result of credit inflation; (not excessive savings, as the Keynesians would have it) which at all times in history has been caused by direct government action or by government influence. As for aggravated unemployment, the individualist insists that it is exclusively the result of government intervention through inflation, wage rigidities, burdensome taxes, and restrictions on trade and production such as price controls and tariffs. The inflation that comes inevitably with government pump-priming soon catches up with the laborer, wipes away any real increase in his wages, discourages private investment, and sets off a new deflationary spiral which can in turn only be counteracted by more coercive and paternalistic government policies. And so it is that the "long run" is very soon a-coming, and the harmful effects of government intervention are far more durable than those that are sustained by encouraging the unhampered free market to work out its own destiny.

Some of the leaders of the backlash said their name was an acronym for “Taxed Enough Already.” Maybe this was true at first. But the Tea Party was soon infused with paranoia that had nothing to do with taxes. While the ugliness caught Washington observers by surprise, anyone who had spent time in a battleground state recognized it instantly. Back in Ohio, volunteers had been told to check boxes corresponding to a voter’s most important issue: economy, environment, health care. But what box were you supposed to check when a voter’s concern was that Obama was a secret Muslim? Or a terrorist? Or a communist? Or the actual, literal Antichrist? How could you convince a voter whose pastor told them your candidate would bring about the biblical end of days? Other people were just plain racist. Outside an unemployment center in Canton, a skinny white man with stringy hair and a ratty T-shirt told me he would never, ever support my candidate. When I asked why, he took two fingers and tapped them against the veiny underside of his forearm. At first I didn’t understand. “You won’t vote for Obama because you’re a heroin addict?” It took me at least ten seconds to realize he was gesturing to the color of his skin.

An ever growing part of our major institutions’ functions is the cultivation and maintenance of three sets of illusions which turn the citizen into a client to be saved by experts...The first enslaving illusion is the idea that people are born to be consumers and that they can attain any of their goals by purchasing goods and services. This illusion is due to an educated blindness to the worth of use-values in the total economy. In none of the economic models serving as national guidelines is there a variable to account for non-marketable use-values any more than there is a variable for nature's perennial contribution.

The economic system barely functions as it is—I mean, the contemporary economic system is a complete catastrophe, an absolutely catastrophic failure. For instance, the International Labor Organization recently gave its latest estimate of unemployment worldwide—"unemployment" they define as meaning not having enough work to meet a subsistence level, so maybe you can sell some handkerchiefs at a street corner or something, but you don't have enough work to survive on your own. They estimate that at about 30 percent of the world's population which makes it a lot worse than the Great Depression. Alright? Now, there's a ton of work to be done in the world-everywhere you look there's work that ought to be done. And the people who don't have work would be delighted to do it. So what you've got is a huge number of idle hands, a vast amount of work that ought to be done, and an economic system that is incapable of putting those two things together. Okay, absolutely catastrophic failure.

The history of black workers in the United States illustrates the point. As already noted, from the late nineteenth-century on through the middle of the twentieth century, the labor force participation rate of American blacks was slightly higher than that of American whites. In other words, blacks were just as employable at the wages they received as whites were at their very different wages. The minimum wage law changed that. Before federal minimum wage laws were instituted in the 1930s, the black unemployment rate was slightly lower than the white unemployment rate in 1930. But then followed the Davis-Bacon Act of 1931, the National Industrial Recovery Act of 1933 and the Fair Labor Standards Act of 1938—all of which imposed government-mandated minimum wages, either on a particular sector or more broadly. The National Labor Relations Act of 1935, which promoted unionization, also tended to price black workers out of jobs, in addition to union rules that kept blacks from jobs by barring them from union membership. The National Industrial Recovery Act raised wage rates in the Southern textile industry by 70 percent in just five months and its impact nationwide was estimated to have cost blacks half a million jobs. While this Act was later declared unconstitutional by the Supreme Court, the Fair Labor Standards Act of 1938 was upheld by the High Court and became the major force establishing a national minimum wage. As already noted, the inflation of the 1940s largely nullified the effect of the Fair Labor Standards Act, until it was amended in 1950 to raise minimum wages to a level that would have some actual effect on current wages. By 1954, black unemployment rates were double those of whites and have continued to be at that level or higher. Those particularly hard hit by the resulting unemployment have been black teenage males. Even though 1949—the year before a series of minimum wage escalations began—was a recession year, black teenage male unemployment that year was lower than it was to be at any time during the later boom years of the 1960s. The wide gap between the unemployment rates of black and white teenagers dates from the escalation of the minimum wage and the spread of its coverage in the 1950s. The usual explanations of high unemployment among black teenagers—inexperience, less education, lack of skills, racism—cannot explain their rising unemployment, since all these things were worse during the earlier period when black teenage unemployment was much lower. Taking the more normal year of 1948 as a basis for comparison, black male teenage unemployment then was less than half of what it would be at any time during the decade of the 1960s and less than one-third of what it would be in the 1970s. Unemployment among 16 and 17-year-old black males was no higher than among white males of the same age in 1948. It was only after a series of minimum wage escalations began that black male teenage unemployment not only skyrocketed but became more than double the unemployment rates among white male teenagers. In the early twenty-first century, the unemployment rate for black teenagers exceeded 30 percent. After the American economy turned down in the wake of the housing and financial crises, unemployment among black teenagers reached 40 percent.

Capital’s interests lie in paying the worker as little as possible and in preventing him from exercising control over the process of production, while the worker wants to be paid as much as possible and to exercise greater control over production. This simple structural antagonism is the basis for the whole history of the labor movement, the continual confrontations, the unions and union-busting, the private armies deployed to break up strikes, the government suppression of labor parties, the revolutionary social movements, the constant and pervasive stream of business propaganda, and the periodic bursts of cooperative economic activity among the ranks of labor. At the same time, the vicissitudes of the capitalist economy leave many people unemployed at any given time, unable to find work because their skills and needs are not valued or because of insufficient investment in their geographical or professional area, or because of outsourcing to countries where labor is cheaper, or for other reasons.

The only solution was to tie the hands of macroeconomic policy makers.7 Instead of giving the Federal Reserve discretion to trade lower unemployment for higher inflation, the central bank should be forced to accept the fact that a certain amount of unemployment was necessary to keep inflation stable. As we will see, MMT contests this framework.

Here, poverty in the United States is a choice. Stagnant middle-class incomes are a choice. Technology-fueled mass unemployment is a choice. Racism is a choice. The patriarchy is a choice. This is not to discount how deeply entrenched existing policies, interests, and tendencies are - but to recognize that while they might be entrenched, they are not immutable.

Singapore's economy is considered one of the freest, most innovative, most competitive, dynamic and business-friendly in the world. There is no minimum wage and so the unemployment rate is also one of the lowest in the world. Singapore also has low tax rates, no corruption, good infrastructure and a skilled workforce, making it very attractive to foreign companies.

We have been through a torrid decade and more, where living standards have declined but we are constantly told this one of the longest running economic expansions in history. It's as if truly live in George Orwell's 1984 and the powers that be speak a form of doublespeak. When they say employment is at a record high they fail to say wages have been going down in real terms for decades.

Why does Joe Normie think it’s a litmus test for morality if one returns one’s shopping cart? Big-box stores put out of business local retailers, they automated their systems to reduce employees, and they got customers to be their own cashiers without getting paid for their labor, and yet to prove I’m a good person, I’m supposed to do more unpaid work for them to streamline their operation?

I decide to scope out craigslist to see all the vibrant economic employment opportunities available to me in this depression. Oh, I’m sorry, I mean “recession.” No matter how many millions of jobs are lost, how much debt our country accrues, or how many years the stagnation drags on, it’s not a depression until the dogmatic media officially declares it to be a depression. It’s as if they believe by repeatedly printing or saying economists are afraid the economy will slip back into a recession, they’ll fool the masses of unemployed or underemployed into believing that not only are we not in a depression, but we aren’t even in a recession. I’m sure the millions of unemployed, freshly graduated college kids who have thousands of dollars of unshakable debt to pay off feel comforted by the empty repetition.

Under Coolidge, the federal debt fell. Under Coolidge, the top income tax rate came down by half, to 25 percent. Under Coolidge, the federal budget was always in surplus. Under Coolidge, unemployment was 5 percent or even 3 percent. Under Coolidge, Americans wired their homes for electricity and bought their first cars or household appliances on credit. Under Coolidge, the economy grew strongly, even as the federal government shrank. Under Coolidge, the rates of patent applications and patents granted increased dramatically. Under Coolidge, there came no federal antilynching law, but lynchings themselves became less frequent and Ku Klux Klan membership dropped by millions. Under Coolidge, a man from a town without a railroad station, Americans moved from the road into the air. Under Coolidge, religious faith found its modern context: the first great White House Christmas tree was lit, an ingenious use for the new technology, electricity. Under Coolidge, the number of local telephone calls went up by a quarter. In Silent Cal’s time, Americans learned to chatter. Under Coolidge, wages rose and interest rates came down so that the poor might borrow more easily. Under Coolidge, the rich came to pay a greater share of the income tax.

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

In recent years a smaller share of young adults has been employed than at any time since the Bureau of Labor Statistics started tracking such trends in 1948. So it's not surprising that this generation of youthful protesters has a different focus for their grievances: the economy, stupid. But notice the targets they've chosen to demonize. It's all about class, not age. It's 1% versus 99%, not young versus old. Occupy Wall Street, not Occupy Leisure World.

When nothing is valued for what it is, everything is destined to be wasted. Once the values of things refer only to their future usefulness, then an infinite withdrawal of value from the living present has begun. Nothing (and nobody) can then exist that is not theoretically replaceable by something (or somebody) more valuable. The country that we (or some of us) had thought to make our home becomes instead 'a nation rich in natural resources'; the good bounty of the land begins its mechanical metamorphosis into junk, garbage, silt, poison, and other forms of 'waste.' "The inevitable result of such an economy is that no farm or any other usable property can safely be regarded by anyone as a home, no home is ultimately worthy of our loyalty, nothing is ultimately worth doing, and no place or task or person is worth a lifetime's devotion. 'Waste,' in such an economy, must eventually include several categories of humans--the unborn, the old, 'disinvested' farmers, the unemployed, the 'unemployable.' Indeed, once our homeland, our source, is regarded as a resource, we are all sliding downward toward the ash heap or the dump.

The inflation of the 1920s had caused large asset bubbles to form in the housing and stock markets, causing an artificial rise in wages and prices. After the bubble burst, market prices sought readjustment via a drop in the value of the dollar compared to gold, and a drop in real wages and prices. The pigheadedness of deluded central planners who wanted to prevent all three from taking place paralyzed the economy: the dollar, wages, and prices were overvalued, leading to people seeking to drop their dollars for gold, as well as massive unemployment and failure of production.

Speculators, meanwhile, have seized control of the global economy and the levers of political power. They have weakened and emasculated governments to serve their lust for profit. They have turned the press into courtiers, corrupted the courts, and hollowed out public institutions, including universities. They peddle spurious ideologies—neoliberal economics and globalization—to justify their rapacious looting and greed. They create grotesque financial mechanisms, from usurious interest rates on loans to legalized accounting fraud, to plunge citizens into crippling forms of debt peonage. And they have been stealing staggering sums of public funds, such as the $65 billion of mortgage-backed securities and bonds, many of them toxic, that have been unloaded each month on the Federal Reserve in return for cash.21 They feed like parasites off of the state and the resources of the planet. Speculators at megabanks and investment firms such as Goldman Sachs are not, in a strict sense, capitalists. They do not make money from the means of production. Rather, they ignore or rewrite the law—ostensibly put in place to protect the weak from the powerful—to steal from everyone, including their own shareholders. They produce nothing. They make nothing. They only manipulate money. They are no different from the detested speculators who were hanged in the seventeenth century, when speculation was a capital offense. The obscenity of their wealth is matched by their utter lack of concern for the growing numbers of the destitute. In early 2014, the world’s 200 richest people made $13.9 billion, in one day, according to Bloomberg’s billionaires index.22 This hoarding of money by the elites, according to the ruling economic model, is supposed to make us all better off, but in fact the opposite happens when wealth is concentrated in the hands of a few individuals and corporations, as economist Thomas Piketty documents in his book Capital in the Twenty-First Century.23 The rest of us have little or no influence over how we are governed, and our wages stagnate or decline. Underemployment and unemployment become chronic. Social services, from welfare to Social Security, are slashed in the name of austerity. Government, in the hands of speculators, is a protection racket for corporations and a small group of oligarchs. And the longer we play by their rules the more impoverished and oppressed we become. Yet, like

What is the actual link between material consumption and objective and subjective quality of life once the basic needs for food, clothes, shelter, and mobility are well satisfied? Going from material misery to modest material comfort will make many things in life better but, obviously, the link is not an endless escalator. But if so, where is the saturation point? Can such a level actually be quantified in a meaningful way? These questions must be asked even if there are no easy answers, mainly because of the situation that is the very opposite of the material poverty outlined at the beginning of this section: too many people live in the condition of material excess and this does not endow them with a higher physical quality of life than that enjoyed by moderate consumers and it does not make them exceptionally happy. At the most fundamental level, the question is about the very nature of modern economies. All but a tiny minority of economists (those of ecological persuasion) see the constant expansion of output as the fundamental goal. And not just any expansion: economies should preferably grow at annual rates in excess of 2%, better yet 3%. This is the only model, the only paradigm, and the only precept, as the economists in command of modern societies cannot envisage a system that would deliberately grow at a minimum rate, even less so one that would experience zero growth, and the idea of a carefully managed decline appears to them to be outright unimaginable. The pursuit of endless growth is, obviously, an unsustainable strategy (Binswanger, 2009), and the post-2008 experience has shown how dysfunctional modern economies become as soon as the growth becomes negligible, ceases temporarily or when there is even a slight decline: rising unemployment, falling labor participation, growing income inequality, and soaring budget deficits.

Bankers are seeking to capture government and make financial policy immune from democratic choice. What promised to be a progressive social democratic Europe half a century ago is turning into a power grab by financial predators. The EU has confronted Greece, Cyprus and other indebted economies with an option of suffering debt deflation or leaving the eurozone. Since Greece’s Syriza coalition took the electoral lead in opposing the financial and fiscal austerity, the creditor response has been to dare Greece to withdraw – and to suffer a transitional financial chaos if it tries to save itself from being crushed by unemployment, bankruptcy and emigration.

The Great Recession and its continuing aftermath have left many twentysomethings feeling naïve, even devastated. Twentysomethings are more educated than ever before, but a smaller percentage find work after college. Many entry-level jobs have gone overseas making it more difficult for twentysomethings to gain a foothold at home. With a contracting economy and a growing population, unemployment is at its highest in decades. An unpaid internship is the new starter job. About a quarter of twentysomethings are out of work and another quarter work only part-time. Twentysomethings who do have paying jobs earn less than their 1970s counterparts when adjusted for inflation.

That’s why, in addition to exposing the vast conspiracy against it, I’m going to tell you about the real Trump presidency, which has accomplished so much despite the dark forces arrayed against it. That includes tax reform, a booming economy, record-low unemployment, and a renewed manufacturing base. ISIS is vanquished, there are historic peace talks on the Korean peninsula, and we are moving toward a more mutually respectful relationship with China. I’m talking about fairer trade with partners who have run roughshod over previous administrations, cared little for what happened to most Americans as long as their Wall Street and corporate donors kept the contributions flowing.

Part of this rise of individualism is evident in the mistrust about the social support of vulnerable social groups, such as lone parents, and elderly, or unemployed, people, and in the suggestion that a 'nanny state' was emerging because 'too many' people were dependant on state benefits. (This is in context of a world economy that is creating mass unemployment, where support for the family has consistently been undermined, where elderly people have had services withdrawn that allowed them to be cared for by their families, and so on.) In other words, the ethic of social support being undermined by 'rugged individualism' results in blaming the victim for their own difficulties.

I want to defend Ben Bella just as I am going to defend Boumedienne. Ben Bella was not the 'demon' that the nervous, demagogic communique of 19 June accused him of being, no more than Boumedienne is the 'reactionary' that L'Unita wrote about. Both are victims of the same drama that every Third World politician lives through if he is honest, if he is a patriot. This was the drama of Lumumba and Nehru; it is the drama of Nyerere and Sekou Toure. The essence of the drama lies in the terrible material resistance that each one encounters on taking his first, second, and third steps up the summit of power. Each one wants to do something good and begins to do it and then sees, after a month, after a year, after three years, that it just isn't happening, that it is slipping away, that it is bogged down in the sand. Everything is in the way: the centuries of backwardness, the primitive economy, the illiteracy, the religious fanaticism, the tribal blindness, the chronic hunger, the colonial past with its practice of debasing and dulling the conquered, the blackmail by the imperialists, the greed of the corrupt, the unemployment, the red ink. progress comes with great difficulty along such a road. The politician begins to push too hard. He looks for a way out through dictatorship. The dictatorship then fathers an opposition. The opposition organises a coup. And the cycle begins anew.

Mercantilists promote the view that private market activity often drives the economy into difficulties which require government to intervene and set matters back on course. They typically characterize the economy as cyclical, driven to excesses by human emotions of greed and fear, which cause “bubbles” and “crashes” and interrupt steady progress of society. Government, they say, must prevent these cycles, smooth these bubbles and crashes, so as to achieve less volatility and greater stability in economic growth. Then they persuade government to adopt policies which produce cycles, bubbles, crashes, volatility, high taxes and unemployment, and economic instability —and monstrously large, illicit gains for themselves.

I do not see, however, why a democratic state, armed with a legislature and the power to draw up a budget, cannot strive for a certain fairness in, for example, pension policies or tax policies, or support to the unemployed, or salaries to public employees, or assistance to the elderly living alone, people who have health problems, or those who, for various reasons, find themselves at the bottom of society. Every civilized state attempts, in different ways and with different degrees of success, to come up with reasonable policies in these areas, and not even the most ardent supporters of the market economy have anything against it in principle. In the end, then, it is a conflict not of beliefs, but rather of terminology.

Most people today are not aware that British Prime Minister Neville Chamberlain helped restore Great Britain’s financial stability during the Great Depression and also passed legislation to extend unemployment benefits, pay pensions to retired workers, and otherwise help those hit hard by the slumping economy. But history does remember his failure to confront Hitler. That is Chamberlain’s enduring legacy. So too will Iran’s construction of nuclear weapons, if it manages to do so in the next few years, become President Barack Obama’s enduring legacy. Regardless of his passage of health care reform and regardless of whether he restores jobs and helps the economy recover, Mr. Obama will be remembered for allowing Iran to obtain nuclear weapons.

Early on in the top, some parts of the credit system suffer, but others remain robust, so it isn’t clear that the economy is weakening. So while the central bank is still raising interest rates and tightening credit, the seeds of the recession are being sown. The fastest rate of tightening typically comes about five months prior to the top of the stock market. The economy is then operating at a high rate, with demand pressing up against the capacity to produce. Unemployment is normally at cyclical lows and inflation rates are rising. The increase in short-term interest rates makes holding cash more attractive, and it raises the interest rate used to discount the future cash flows of assets, weakening riskier asset prices and slowing lending.

According to Vedder and Galloway, prior to the enactment of the Davis-Bacon Act, black and white construction unemployment registered similar levels. After the enactment of the Davis-Bacon Act, however, black unemployment rose relative to that of whites.[31] Vedder and Galloway also argue that 1930 to 1950 was a period of unprecedented and rapidly increasing government intervention in the economy. This period saw enactment of the bulk of legislation restraining the setting of private wage, such as the Fair Labor Standards Act, Davis-Bacon Act, Walsh-Healey Act, and National Labor Relations Act. The Social Security Act also played a role, forcing employers to pay for a newly imposed fringe benefit.[32] Vedder and Galloway also note that this period saw a rapid increase in the black/white unemployment ratio.

. . . one of the lessons of a UBI is that our policy outcomes are not inevitabilities but choices. The United States would be significantly richer right now if it had passed more fiscal stimulus at the onset of the Great Recession. It would be richer if it invested in infrastructure. It would be richer if it chose to ensure that no child grew up in poverty. It would be richer if it had worked to make black and white Americans, as well as men and women, true equals. . . poverty in the United States is a choice. Stagnant middle-class incomes are a choice. Technology-fueled mass unemployment is a choice. Racism is a choice. The patriarchy is a choice. This is not to discount how deeply entrenched existing policies, interests, and tendencies are—but to recognize that while they might be entrenched, they are not immutable.

For the first year Nazi economic policies, which were largely determined by Dr. Schacht—for Hitler was bored with economics, of which he had an almost total ignorance—were devoted largely to putting the unemployed back to work by means of greatly expanded public works and the stimulation of private enterprise. Government credit was furnished by the creation of special unemployment bills, and tax relief was generously given to firms which raised their capital expenditures and increased employment. But the real basis of Germany’s recovery was rearmament, to which the Nazi regime directed the energies of business and labor—as well as of the generals—from 1934 on. The whole German economy came to be known in Nazi parlance as Wehrwirtschaft, or war economy, and it was deliberately designed to function not only in time of war but during the peace that led to war.

This resulted in a model of the macroeconomy as consisting of a single consumer, who lives for ever, consuming the output of the economy, which is a single good produced in a single firm, which he owns and in which he is the only employee, which pays him both profits equivalent to the marginal product of capital and a wage equivalent to the marginal product of labor, to which he decides how much labor to supply by solving a utility function that maximizes his utility over an infinite time horizon, which he rationally expects and therefore correctly predicts. The economy would always be in equilibrium except for the impact of unexpected ‘technology shocks’ that change the firm’s productive capabilities (or his consumption preferences) and thus temporarily cause the single capitalist/worker/consumer to alter his working hours. Any reduction in working hours is a voluntary act, so the representative agent is never involuntarily unemployed, he’s just taking more leisure. And there are no banks, no debt, and indeed no money in this model. You think I’m joking? I wish I was.

As I write this note, it is May 2020, and the world is battling the coronavirus pandemic. My husband’s best friend, Tom, who was one of the earliest of our friends to encourage my writing and who was our son’s godfather, caught the virus last week and has just passed away. We cannot be with his widow, Lori, and his family to mourn. Three years ago, I began writing this novel about hard times in America: the worst environmental disaster in our history; the collapse of the economy; the effect of massive unemployment. Never in my wildest dreams did I imagine that the Great Depression would become so relevant in our modern lives, that I would see so many people out of work, in need, frightened for the future. As we know, there are lessons to be learned from history. Hope to be derived from hardships faced by others. We’ve gone through bad times before and survived, even thrived. History has shown us the strength and durability of the human spirit. In the end, it is our idealism and our courage and our commitment to one another—what we have in common—that will save us. Now, in these dark days, we can look to history, to the legacy of the Greatest Generation and the story of our own past, and take strength from it.

Neoliberal economics, the logic of which is tending today to win out throughout the world thanks to international bodies like the World Bank or the International Monetary Fund and the governments to whom they, directly or indirectly, dictate their principles of ‘governance’,10 owes a certain number of its allegedly universal characteristics to the fact that it is immersed or embedded in a particular society, that is to say, rooted in a system of beliefs and values, an ethos and a moral view of the world, in short, an economic common sense, linked, as such, to the social and cognitive structures of a particular social order. It is from this particular economy that neoclassical economic theory borrows its fundamental assumptions, which it formalizes and rationalizes, thereby establishing them as the foundations of a universal model. That model rests on two postulates (which their advocates regard as proven propositions): the economy is a separate domain governed by natural and universal laws with which governments must not interfere by inappropriate intervention; the market is the optimum means for organizing production and trade efficiently and equitably in democratic societies. It is the universalization of a particular case, that of the United States of America, characterized fundamentally by the weakness of the state which, though already reduced to a bare minimum, has been further weakened by the ultra-liberal conservative revolution, giving rise as a consequence to various typical characteristics: a policy oriented towards withdrawal or abstention by the state in economic matters; the shifting into the private sector (or the contracting out) of ‘public services’ and the conversion of public goods such as health, housing, safety, education and culture – books, films, television and radio – into commercial goods and the users of those services into clients; a renunciation (linked to the reduction in the capacity to intervene in the economy) of the power to equalize opportunities and reduce inequality (which is tending to increase excessively) in the name of the old liberal ‘self-help’ tradition (a legacy of the Calvinist belief that God helps those who help themselves) and of the conservative glorification of individual responsibility (which leads, for example, to ascribing responsibility for unemployment or economic failure primarily to individuals, not to the social order, and encourages the delegation of functions of social assistance to lower levels of authority, such as the region or city); the withering away of the Hegelian–Durkheimian view of the state as a collective authority with a responsibility to act as the collective will and consciousness, and a duty to make decisions in keeping with the general interest and contribute to promoting greater solidarity. Moreover,

Anthony Fauci seems to have not considered that his unprecedented quarantine of the healthy would kill far more people than COVID, obliterate the global economy, plunge millions into poverty and bankruptcy, and grievously wound constitutional democracy globally. We have no way of knowing how many people died from isolation, unemployment, deferred medical care, depression, mental illness, obesity, stress, overdoses, suicide, addiction, alcoholism, and the accidents that so often accompany despair. We cannot dismiss the accusations that his lockdowns proved more deadly than the contagion. A June 24, 2021 BMJ study22 showed that US life expectancy decreased by 1.9 years during the quarantine. Since COVID mortalities were mainly among the elderly, and the average age of death from COVID in the UK was 82.4, which was above the average lifespan,23 the virus could not by itself cause the astonishing decline. As we shall see, Hispanic and Black Americans often shoulder the heaviest burden of Dr. Fauci’s public health adventures. In this respect, his COVID-19 countermeasures proved no exception. Between 2018 and 2020, the average Hispanic American lost around 3.9 years in longevity, while the average lifespan of a Black American dropped by 3.25 years.24 This dramatic culling was unique to America. Between 2018 and 2020, the 1.9 year decrease in average life expectancy at birth in the US was roughly 8.5 times the average decrease in 16 comparable countries, all of which were measured in months, not years.25

International economic integration generally expands economic opportunities and is good for society. The great alternatives to economic integration failed. Attempts to seal countries off from the rest of the world economy in the 1930s were ultimately disastrous. Germany, Italy, and Japan closed their economies and also turned toward dictatorship, war, and conquest. The poor countries and former colonies that created closed economies in the 1930s and 1940s collapsed into economic stagnation, social unrest, crisis, and military dictatorships in the 1970s and 1980s. Few countries have achieved economic progress without access to the international economy. But an insistence on globalization at all cost is equally misguided. During the golden age of global capitalism before 1914, governments committed themselves to international economic integration and little else. Supporters of free trade, the gold standard, and international finance wanted governments to limit themselves to safeguarding these policies and their properties. But these governments ignored the concerns of many harmed by globalization. As the working and middle classes grew, so did their demands for social reforms to improve the lot of the unemployed, the poor, children, and the elderly. The clash between classical orthodoxy and these new social movements turned into bitter, often violent, conflicts, especially once the Depression hit. Attempts to maintain global capitalism without addressing those ill treated by world markets drove societies toward polarization and conflict.

The intellectual justification for transphobia on the left is usually framed as concern about a mythological 'trans ideology', which is individualist, bourgeois and unconcerned with class struggle. As we've seen, however, the majority of trans people are working class, and the oppression of trans people is specifically rooted in capitalism. In short, capitalism across the world still relies heavily on the idea of different categories of men's work and women's work, in which "women's work" (such as housework, child-rearing, and emotional labour) is either poorly paid or not paid at all. In order for this categorization to function, it needs to rest on a clear idea of how to divide men and women. Capitalism also requires a certain level of unemployment to function. If there were enough work to go round, no worker would worry about losing their job, and all workers could demand higher wages and better conditions. The ever-present spectre of unemployment, on the other hand, enables employers to dictate conditions. Equally, in terms of severe crisis this 'reserve army' of unemployed people can be called into employment as and when the economy requires it. This system of deliberate unemployment needs ways to mark who will work and who will be left unemployed. In our society this is principally achieved through race, class, gender, and disability. Social exclusion and revulsion at the existence of trans people usefully provides another class of people more likely to be left in the ranks of the unemployed (even more so if they are trans and poor, black, or disabled - which is why unemployment is highest among these trans people).

Necessary because it could not be suppressed, this role of poverty was necessary too because it made wealth possible. Because they labor and consume little, those who are in need permit a nation to enrich itself, to set a high value on its fields, its colonies, and its mines, to manufacture products which will be sold the world over; in short, a people would be poor which had no paupers. Indigence becomes an indispensable element in the State. In it is concealed the secret but also the real life of a society. The poor constitute the basis and the glory of nations. And their poverty, which cannot be suppressed, must be exalted and revered: "My purpose is merely to attract a share of that vigilant attention [that of the government] to the suffering portion of the People...; the succor it is owed derives essentially from the honor and the prosperity of an Empire, of which the Poor are everywhere the firmest support, for a sovereign cannot preserve and extend his realm without favoring the population, the cultivation of the Land, the Arts, and commerce; and the Poor are the necessary agents of these great powers which establish the true strength of a People." Here is an entire moral rehabilitation of the Pauper, which designates, at a deeper level, a social and economic reintegration of his role and character. In the mercantilist economy, the Pauper, being neither producer nor consumer, had no place: idle, vagabond, unemployed, he belonged only to confinement, a measure by which he was exiled and as it were abstracted from society. With the nascent industry which needs manpower, he once again plays a part in the body of the nation.

In the meantime Chancellor Schleicher went about—with an optimism that was myopic, to say the least—trying to establish a stable government. On December 15 he made a fireside broadcast to the nation begging his listeners to forget that he was a general and assuring them that he was a supporter “neither of capitalism nor of socialism” and that to him “concepts such as private economy or planned economy have lost their terrors.” His principal task, he said, was to provide work for the unemployed and get the country back on its economic feet. There would be no tax increase, no more wage cuts. In fact, he was canceling the last cut in wages and relief which Papen had made. Furthermore, he was ending the agricultural quotas which Papen had established for the benefit of the large landowners and instead was launching a scheme to take 800,000 acres from the bankrupt Junker estates in the East and give them to 25,000 peasant families. Also prices of such essentials as coal and meat would be kept down by rigid control. This was a bid for the support of the very masses which he had hitherto opposed or disregarded, and Schleicher followed it up with conversations with the trade unions, to whose leaders he gave the impression that he envisaged a future in which organized labor and the Army would be twin pillars of the nation. But labor was not to be taken in by a man whom it profoundly mistrusted, and it declined its co-operation. The industrialists and the big landowners, on the other hand, rose up in arms against the new Chancellor’s program, which they clamored was nothing less than Bolshevism. The businessmen were aghast at Schleicher’s sudden friendliness to the unions. The owners of large estates were infuriated at his reduction of agricultural protection and livid at the prospect of his breaking up the bankrupt estates in the East. On

Almost all official statistics and policy documents on wages, income, gross domestic product (GDP), crime, unemployment rates, innovation rates, cost of living indices, morbidity and mortality rates, and poverty rates are compiled by governmental agencies and international bodies worldwide in terms of both total aggregate and per capita metrics. Furthermore, well-known composite indices of urban performance and the quality of life, such as those assembled by the World Economic Forum and magazines like Fortune, Forbes, and The Economist, primarily rely on naive linear combinations of such measures.6 Because we have quantitative scaling curves for many of these urban characteristics and a theoretical framework for their underlying dynamics we can do much better in devising a scientific basis for assessing performance and ranking cities. The ubiquitous use of per capita indicators for ranking and comparing cities is particularly egregious because it implicitly assumes that the baseline, or null hypothesis, for any urban characteristic is that it scales linearly with population size. In other words, it presumes that an idealized city is just the linear sum of the activities of all of its citizens, thereby ignoring its most essential feature and the very point of its existence, namely, that it is a collective emergent agglomeration resulting from nonlinear social and organizational interactions. Cities are quintessentially complex adaptive systems and, as such, are significantly more than just the simple linear sum of their individual components and constituents, whether buildings, roads, people, or money. This is expressed by the superlinear scaling laws whose exponents are 1.15 rather than 1.00. This approximately 15 percent increase in all socioeconomic activity with every doubling of the population size happens almost independently of administrators, politicians, planners, history, geographical location, and culture.

KEYNESIAN ECONOMICS AND STIMULUS Keynesian economics is based on the notion that unemployment arises when total or aggregate demand in an economy falls short of the economy’s ability to supply goods and services. When products go unsold, jobs are lost. Aggregate demand, in turn, comes from two sources: the private sector (which is the majority) and the government. At times, aggregate demand is too buoyant—goods fly off the shelves and labor is in great demand—and we get rising inflation. At other times, aggregate demand is inadequate—goods are hard to sell and jobs are hard to find. In those cases, Keynes argued in the 1930s, governments can boost employment by cutting interest rates (what we now call looser monetary policy), raising their own spending, or cutting people’s taxes (what we now call looser fiscal policy). By the same logic, when there is too much demand, governments can fight actual or incipient inflation by raising interest rates (tightening monetary policy), increasing taxes, or reducing its own spending (thus tightening fiscal policy). That’s part of standard Keynesian economics, too, although Keynes, writing during the Great Depression, did not emphasize it. Setting aside the underlying theory, the central Keynesian policy idea is that the government can—and, Keynes argued, should—act as a kind of balance wheel, stimulating aggregate demand when it’s too weak and restraining aggregate demand when it’s too strong. For decades, American economists took for granted that most of that job should and would be done by monetary policy. Fiscal policy, they thought, was too slow, too cumbersome, and too political. And in the months after the Lehman Brothers failure, the Federal Reserve did, indeed, pull out all the stops—while fiscal policy did nothing. But what happens when, as was more or less the case by December 2008, the central bank has done almost everything it can, and yet the economy is still sinking? That’s why eyes started turning toward Congress and the president—that is, toward fiscal stimulus—after the 2008 election.

Oil “Soviet Russia cannot survive without Baku’s oil,” told comrade Vladimir Lenin. One of the plans was to drain the Caspian Sea: “Is it possible? Can you drain the Caspian Sea?” said the powerful Stalin. It was more an order than a question.” (- Angelika Regossi, “Russian Colonial Food”. Chapter: Azerbaijan - Oil Country). Mafia “With his wife Victoria, they reigned here for nineteen years. This period Georgians called ironically the Victorian Era, and his wife got the name Queen Victoria. Victoria created the system when all was for sale: state documents ten times the price; 5,000 roubles to enter the Communist party; 50,000 for the judge job, … “ (- Angelika Regossi, “Russian Colonial Food”. Chapter: Gruzia - Where Soviet Mafia Was Born). Smoking “Smoking breaks in the USSR were long and often—and became an official excuse not to work, causing huge damage to the already failing state economy. But on the other hand, with zero unemployment and prison terms, if you are not on a payroll, the state could not provide enough work for everybody. People had to show up every day in the workplace. Boredom from nothing-to-do turned into massive laziness and Soviet workers spent long hours in the smoke rooms. For some, it was a place to relax, for others, to provoke a frank conversation—because … Well, let’s talk about it later.” (- Angelika Regossi, “Russian Colonial Food”. Chapter: Litva - Friends and Rebels). God “The bus was driving slowly, just forty km an hour on the slippery winter road. Outside was a spectacular view of the Caucasus mountains. Here and there appeared churches: nearby and far away, but always on the top of the hill: “Closer to God, as high as possible,” crossed His mind. The bus stopped with a creaking sound, and He slowly got off: “For me, Khor Virap Monastery will be the resting place: from the Soviet life … from the communist lies … I shall spend here the rest of my life. And from here … I shall go to eternity …” these were His last thoughts before He entered the monastery gate. He was dead tired from all that happened, walking uphill closer to God.” (- Angelika Regossi, “Russian Colonial Food”. Chapter: Armenia - Road in the First Christian State).

As I write this note, it is May 2020, and the world is battling the coronavirus pandemic. My husband’s best friend, Tom, who was one of the earliest of our friends to encourage my writing and who was our son’s godfather, caught the virus last week and has just passed away. We cannot be with his widow, Lori, and his family to mourn. Three years ago, I began writing this novel about hard times in America: the worst environmental disaster in our history; the collapse of the economy; the effect of massive unemployment. Never in my wildest dreams did I imagine that the Great Depression would become so relevant in our modern lives, that I would see so many people out of work, in need, frightened for the future. As we know, there are lessons to be learned from history. Hope to be derived from hardships faced by others. We’ve gone through bad times before and survived, even thrived. History has shown us the strength and durability of the human spirit. In the end, it is our idealism and our courage and our commitment to one another—what we have in common—that will save us. Now, in these dark days, we can look to history, to the legacy of the Greatest Generation and the story of our own past, and take strength from it. Although my novel focuses on fictional characters, Elsa Martinelli is representative of hundreds of thousands of men, women, and children who went west in the 1930s in search of a better life. Many of them, like the pioneers who went west one hundred years before them, brought nothing more than a will to survive and a hope for a better future. Their strength and courage were remarkable. In writing this story, I tried to present the history as truthfully as possible. The strike that takes place in the novel is fictional, but it is based on strikes that took place in California in the thirties. The town of Welty is fictional as well. Primarily where I diverged from the historical record was in the timeline of events. There are instances in which I chose to manipulate dates to better fit my fictional narrative. I apologize in advance to historians and scholars of the era. For more information about the Dust Bowl years or the migrant experience in California, please go to my website KristinHannah.com for a suggested reading list.

OBAMA WENT THROUGH STAGES. That first day, I was in multiple meetings where he tried to lift everyone’s spirits. That evening, he interrupted the senior staff meeting in Denis McDonough’s office and gave a version of the speech that I’d now heard three times as we all sat there at the table. He was the only one standing. It was both admirable and heartbreaking watching him take everything in stride, working—still—to lift people’s spirits. When he was done, I spoke first. “It says a lot about you,” I said, “that you’ve spent the whole day trying to buck the rest of us up.” People applauded. Obama looked down. On the Thursday after the election, he had a long, amiable meeting with Trump. It left him somewhat stupefied. Trump had repeatedly steered the conversation back to the size of his rallies, noting that he and Obama could draw big crowds but Hillary couldn’t. He’d expressed openness to Obama’s arguments about healthcare, the Iran deal, immigration. He’d asked for recommendations for staff. He’d praised Obama publicly when the press was there. Afterward, Obama called a few of us up to the Oval Office to recap. “I’m trying to place him,” he said, “in American history.” He told us Trump had been perfectly cordial, but he’d almost taken pride in not being attached to a firm position on anything. “He peddles bullshit. That character has always been a part of the American story,” I said. “You can see it right back to some of the characters in Huckleberry Finn.” Obama chuckled. “Maybe that’s the best we can hope for.” In breaks between meetings in the coming days, he expressed disbelief that the election had been lost. With unemployment at 5 percent. With the economy humming. With the Affordable Care Act working. With graduation rates up. With most of our troops back home. But then again, maybe that’s why Trump could win. People would never have voted for him in a crisis. He kept talking it out, trying on different theories. He chalked it up to multiple car crashes at once. There was the letter from Comey shortly before the election, reopening the investigation into Clinton’s email server. There was the steady release of Podesta emails from Wikileaks through October. There was a rabid right-wing propaganda machine and a mainstream press that gorged on the story of Hillary’s emails, feeding Trump’s narrative of corruption.

No sound strategy for studying fascism can fail to examine the entire context in which it was formed and grew. Some approaches to fascism start with the crisis to which fascism was a response, at the risk of making the crisis into a cause. A crisis of capitalism, according to Marxists, gave birth to fascism. Unable to assure ever-expanding markets, ever-widening access to raw materials, and ever-willing cheap labor through the normal operation of constitutional regimes and free markets, capitalists were obliged, Marxists say, to find some new way to attain these ends by force. Others perceive the founding crisis as the inadequacy of liberal state and society (in the laissez-faire meaning of liberalism current at that time) to deal with the challenges of the post-1914 world. Wars and revolutions produced problems that parliament and the market—the main liberal solutions—appeared incapable of handling: the distortions of wartime command economies and the mass unemployment attendant upon demobilization; runaway inflation; increased social tensions and a rush toward social revolution; extension of the vote to masses of poorly educated citizens with no experience of civic responsibility; passions heightened by wartime propaganda; distortions of international trade and exchange by war debts and currency fluctuations. Fascism came forward with new solutions for these challenges. Fascists hated liberals as much as they hated socialists, but for different reasons. For fascists, the internationalist, socialist Left was the enemy and the liberals were the enemies’ accomplices. With their hands-off government, their trust in open discussion, their weak hold over mass opinion, and their reluctance to use force, liberals were, in fascist eyes, culpably incompetent guardians of the nation against the class warfare waged by the socialists. As for beleaguered middle-class liberals themselves, fearful of a rising Left, lacking the secret of mass appeal, facing the unpalatable choices offered them by the twentieth century, they have sometimes been as ready as conservatives to cooperate with fascists. Every strategy for understanding fascism must come to terms with the wide diversity of its national cases. The major question here is whether fascisms are more disparate than the other “isms.” This book takes the position that they are, because they reject any universal value other than the success of chosen peoples in a Darwinian struggle for primacy. The community comes before humankind in fascist values, and respecting individual rights or due process gave way to serving the destiny of the Volk or razza. Therefore each individual national fascist movement gives full expression to its own cultural particularism. Fascism, unlike the other “isms,” is not for export: each movement jealously guards its own recipe for national revival, and fascist leaders seem to feel little or no kinship with their foreign cousins. It has proved impossible to make any fascist “international” work.

Many models are constructed to account for regularly observed phenomena. By design, their direct implications are consistent with reality. But others are built up from first principles, using the profession’s preferred building blocks. They may be mathematically elegant and match up well with the prevailing modeling conventions of the day. However, this does not make them necessarily more useful, especially when their conclusions have a tenuous relationship with reality. Macroeconomists have been particularly prone to this problem. In recent decades they have put considerable effort into developing macro models that require sophisticated mathematical tools, populated by fully rational, infinitely lived individuals solving complicated dynamic optimization problems under uncertainty. These are models that are “microfounded,” in the profession’s parlance: The macro-level implications are derived from the behavior of individuals, rather than simply postulated. This is a good thing, in principle. For example, aggregate saving behavior derives from the optimization problem in which a representative consumer maximizes his consumption while adhering to a lifetime (intertemporal) budget constraint.† Keynesian models, by contrast, take a shortcut, assuming a fixed relationship between saving and national income. However, these models shed limited light on the classical questions of macroeconomics: Why are there economic booms and recessions? What generates unemployment? What roles can fiscal and monetary policy play in stabilizing the economy? In trying to render their models tractable, economists neglected many important aspects of the real world. In particular, they assumed away imperfections and frictions in markets for labor, capital, and goods. The ups and downs of the economy were ascribed to exogenous and vague “shocks” to technology and consumer preferences. The unemployed weren’t looking for jobs they couldn’t find; they represented a worker’s optimal trade-off between leisure and labor. Perhaps unsurprisingly, these models were poor forecasters of major macroeconomic variables such as inflation and growth.8 As long as the economy hummed along at a steady clip and unemployment was low, these shortcomings were not particularly evident. But their failures become more apparent and costly in the aftermath of the financial crisis of 2008–9. These newfangled models simply could not explain the magnitude and duration of the recession that followed. They needed, at the very least, to incorporate more realism about financial-market imperfections. Traditional Keynesian models, despite their lack of microfoundations, could explain how economies can get stuck with high unemployment and seemed more relevant than ever. Yet the advocates of the new models were reluctant to give up on them—not because these models did a better job of tracking reality, but because they were what models were supposed to look like. Their modeling strategy trumped the realism of conclusions. Economists’ attachment to particular modeling conventions—rational, forward-looking individuals, well-functioning markets, and so on—often leads them to overlook obvious conflicts with the world around them.

The most interesting aspects of the story lie between the two extremes of coercion and popularity. It might be instructive to consider fascist regimes’ management of workers, who were surely the most recalcitrant part of the population. It is clear that both Fascism and Nazism enjoyed some success in this domain. According to Tim Mason, the ultimate authority on German workers under Nazism, the Third Reich “contained” German workers by four means: terror, division, some concessions, and integration devices such as the famous Strength Through Joy (Kraft durch Freude) leisure-time organization. Let there be no doubt that terror awaited workers who resisted directly. It was the cadres of the German Socialist and Communist parties who filled the first concentration camps in 1933, before the Jews. Since socialists and communists were already divided, it was not hard for the Nazis to create another division between those workers who continued to resist and those who decided to try to live normal lives. The suppression of autonomous worker organizations allowed fascist regimes to address workers individually rather than collectively. Soon, demoralized by the defeat of their unions and parties, workers were atomized, deprived of their usual places of sociability, and afraid to confide in anyone. Both regimes made some concessions to workers—Mason’s third device for worker “containment.” They did not simply silence them, as in traditional dictatorships. After power, official unions enjoyed a monopoly of labor representation. The Nazi Labor Front had to preserve its credibility by actually paying some attention to working conditions. Mindful of the 1918 revolution, the Third Reich was willing to do absolutely anything to avoid unemployment or food shortages. As the German economy heated up in rearmament, there was even some wage creep. Later in the war, the arrival of slave labor, which promoted many German workers to the status of masters, provided additional satisfactions. Mussolini was particularly proud of how workers would fare under his corporatist constitution. The Labor Charter (1927) promised that workers and employers would sit down together in a “corporation” for each branch of the economy, and submerge class struggle in the discovery of their common interests. It looked very imposing by 1939 when a Chamber of Corporations replaced parliament. In practice, however, the corporative bodies were run by businessmen, while the workers’ sections were set apart and excluded from the factory floor. Mason’s fourth form of “containment”—integrative devices—was a specialty of fascist regimes. Fascists were past masters at manipulating group dynamics: the youth group, the leisure-time association, party rallies. Peer pressure was particularly powerful in small groups. There the patriotic majority shamed or intimidated nonconformists into at least keeping their mouths shut. Sebastian Haffner recalled how his group of apprentice magistrates was sent in summer 1933 on a retreat, where these highly educated young men, mostly non-Nazis, were bonded into a group by marching, singing, uniforms, and drill. To resist seemed pointless, certain to lead nowhere but to prison and an end to the dreamed-of career. Finally, with astonishment, he observed himself raising his arm, fitted with a swastika armband, in the Nazi salute. These various techniques of social control were successful.

Speech to the German Folk January 30, 1944 Without January 30, 1933, and without the National Socialist revolution, without the tremendous domestic cleansing and construction efforts, there would be no factor today that could oppose the Bolshevik colossus. After all, Germany was itself so ill at the time, so weakened by the spreading Jewish infection, that it could hardly think of overcoming the Bolshevik danger at home, not to mention abroad. The economic ruin brought about by the Jews as in other countries, the unemployment of millions of Germans, the destruction of peasantry, trade, and industry only prepared the way for the planned internal collapse. This was furthered by support for the continued existence of a senseless state of classes, which could only serve to transform the reason of the masses into hatred in order to make them the willing instrument of the Bolshevik revolution. By mobilizing the proletarian slaves, the Jews hoped that, following the destruction of the national intelligentsia, they could all the more reduce them for good to coolies. But even if this process of the Bolshevik revolt in the interior of Germany had not led to complete success, the state with its democratic Weimar constitution would have been reduced to something ridiculously helpless in view of the great tasks of current world politics. In order to be armed for this confrontation, not only the problems of political power but also the social and economic problems had to be resolved. When National Socialism undertook the realization of its program eleven years ago, it managed just in time to build up a state that did not only have the strength at home but also the power abroad to fulfill the same European mission which first Greece fulfilled in antiquity by opposing the Persians, then Rome [by opposing] the Carthaginians, and the Occident in later centuries by opposing the invasions from the east. Therefore, in the year 1933, we set ourselves four great tasks among many others. On their resolution depended not only the future of the Reich but also the rescue of Europe, perhaps even of the entire human civilization: 1. The Reich had to regain the internal social peace that it had lost by resolving the social questions. That meant that the elements of a division into classes bourgeoisie and proletariat-had to be eliminated in their various manifestations and be replaced by a Volksgemeinschaft. The appeal to reason had to be supplemented by the merciless eradication of the base elements of resistance in all camps. 2. The social and political unification of the nation had to be supplemented by a national, political one. This meant that the body of the Reich, which was not only politically, but also governmentally divided, had to be replaced by a unified National Socialist state, the construction and leadership of which were suited to oppose and withstand even the heaviest attacks and severest tests of the future. 3. The nationally and politically coherent centralized state had the mission of immediately creating a Wehrmacht, whose ideology, moral attitude, numerical strength, and material equipment could serve as an instrument of self-assertion. After the outside world had rejected all German offers for a limitation of armament, the Reich had to fashion its own armament accordingly. 4. In order to secure its continued existence in Europe with the prospect of actual success, it was necessary to integrate all those countries which were inhabited by Germans, or were areas which had belonged to the German Reich for over a thousand years and which, in terms of their national substance and economy, were indispensable to the preservation of the Reich, that is, for its political and military defense. Only the resolution of all these tasks could result in the creation of that state which was capable, at home and abroad, of waging the fight for its defense and for the preservation of the European family of nations.

FOR ENTREPRENEURSHIP Youth unemployment has become an urgent challenge facing the global society. In 2011, nearly 75 million youth aged 15 to 24 were unemployed worldwide. The majority of the world’s youth (87%) living in developing countries “are often underemployed and working in the informal economy under poor conditions,” according to the 2012 The World Youth Report of the United Nations (United

THE NEED FOR ENTREPRENEURSHIP Youth unemployment has become an urgent challenge facing the global society. In 2011, nearly 75 million youth aged 15 to 24 were unemployed worldwide. The majority of the world’s youth (87%) living in developing countries “are often underemployed and working in the informal economy under poor conditions,” according to the 2012 The World Youth Report of the United Nations (United

Five important goals are listed below. If we can achieve these goals, in a context where robots are dramatically increasing productivity and doing more and more of the mindless work that wastes human potential, we will have an economy whose strength and growth defies imagination. How do we achieve these goals? Goal #1 - For the strongest possible economy, we need to create the largest possible pool of consumers, and those consumers need to have money to spend. Goal #2 - For the strongest possible economy, we need maximum economic stability. Every economic downturn has occurred when people stop spending money, either because they don't have money to spend through unemployment, or because they are afraid to let go of their money for fear of future unemployment. Consumers need to have confidence in the economy, both on the spending and the receiving ends of the equation. Goal #3 - For the strongest possible economy, we need to create the largest possible pool of innovators - people who create innovative new businesses, new inventions, new products, new art (films, music, etc.) and new intellectual property. Capitalism is strongest when new ideas are maximized. Goal #4 - For the strongest possible economy, we need for people to invest in these new ideas, both individually and in groups. An idea is nothing unless it is put into action. Without the money provided by investment, there can be no new businesses and no new products. Goal #5 - For the strongest possible economy, we need for people to have maximum freedom. People need the freedom to choose the products they want from an open marketplace of maximum size. They need to be free to start businesses of their own. They need to be free to work on their ideas and carry them as far as possible. At the same time, people need to be free to take time off and relax as they so choose. The notion that people should have to work 60 hours a week to make ends meet is the antithesis of freedom.

But the criticism directed at TOMS (and presumably BOBS as well) in the humanitarian world is that the sometimes-airdropped boxes of shoes disrupt the economies they seek to help, and that they are essentially passing off consumption as charity.6 Instead of addressing the problems of poverty and unemployment, TOMS and BOBS are merely treating a symptom and are in fact making the economy worse in countries that already have high unemployment.

Jim Cramer’s Mad Money is one of the most popular shows on CNBC, a cable TV network that specializes in business and financial news. Cramer, who mostly offers investment advice, is known for his sense of showmanship. But few viewers were prepared for his outburst on August 3, 2007, when he began screaming about what he saw as inadequate action from the Federal Reserve: “Bernanke is being an academic! It is no time to be an academic. . . . He has no idea how bad it is out there. He has no idea! He has no idea! . . . and Bill Poole? Has no idea what it’s like out there! . . . They’re nuts! They know nothing! . . . The Fed is asleep! Bill Poole is a shame! He’s shameful!!” Who are Bernanke and Bill Poole? In the previous chapter we described the role of the Federal Reserve System, the U.S. central bank. At the time of Cramer’s tirade, Ben Bernanke, a former Princeton professor of economics, was the chair of the Fed’s Board of Governors, and William Poole, also a former economics professor, was the president of the Federal Reserve Bank of St. Louis. Both men, because of their positions, are members of the Federal Open Market Committee, which meets eight times a year to set monetary policy. In August 2007, Cramerwas crying outforthe Fed to change monetary policy in order to address what he perceived to be a growing financial crisis. Why was Cramer screaming at the Federal Reserve rather than, say, the U.S. Treasury—or, for that matter, the president? The answer is that the Fed’s control of monetary policy makes it the first line of response to macroeconomic difficulties—very much including the financial crisis that had Cramer so upset. Indeed, within a few weeks the Fed swung into action with a dramatic reversal of its previous policies. In Section 4, we developed the aggregate demand and supply model and introduced the use of fiscal policy to stabilize the economy. In Section 5, we introduced money, banking, and the Federal Reserve System, and began to look at how monetary policy is used to stabilize the economy. In this section, we use the models introduced in Sections 4 and 5 to further develop our understanding of stabilization policies (both fiscal and monetary), including their long-run effects on the economy. In addition, we introduce the Phillips curve—a short-run trade-off between unexpected inflation and unemployment—and investigate the role of expectations in the economy. We end the section with a brief summary of the history of macroeconomic thought and how the modern consensus view of stabilization policy has developed.

In Spain, by 2010 recorded unemployment had risen to over 4.5 million, well past the level that trade unionists and others had predicted would lead to riots. There were no riots. Some observers attributed that to traditional tolerance of unemployment and family networks that could provide community benefits. Others thought it had more to do with the thriving underground economy.

Barra believes she has good reason for optimism. “The U.S. economy and vehicle sales have been rebounding since 2009,” she said of the year industry sales sank to 10.4 million units, prompting plants to be closed and workers to be laid off permanently. But that dramatic cost cutting resulted in the industry being able to reach profitability at a break-even point of only 13 million in vehicle sales, which it has done the last three years and hopes to four-peat in 2015. Barra insists there's plenty of room for the auto industry to grow. “The strength of the labor market, better job security and the recovery in home prices have consumers feeling pretty good about the future, so we expect people will continue to replace their older cars and trucks,” she said, referring to pent-up demand for new vehicles to replace an older fleet on the road now that averages about 11 years of age. Analysts agree, saying employment is up and unemployment down, the economy is doing well, and consumer confidence is up.

For several years now, conservative economists have blamed high unemployment on the purported fact that many Americans have priced themselves out of the global/high-tech jobs market. So if we want more jobs, they say, we’ll need to accept lower wages and benefits. That’s exactly what Americans have been doing. More and more Americans are retaining their jobs by settling for lower pay or going without cost-of-living increases. Or they’ve lost a higher-paying job and have taken one that pays less. Or they’ve joined the great army of contingent workers, self-employed “consultants,” temps, and contract workers—without health-care benefits, pensions, job security, or decent wages.

He’s a politician. It’s all about money. The size of his damned war chest. Kissing babies is total BS. It’s all about campaign contributions. Television and radio time. Mass mailings. What’s the biggest issue facing a career politician? The economy? Crime? Unemployment? Illegal immigration? It’s none of those things. It’s getting reelected to another term.

Losing half of the city's population might solve a lot of problems: overpopulation, unemployment, poverty, crime. It's actually opportunity to build a better economy.

His figures should have been through the roof; the economy was still unsteady, the president was hog-tied by his own compromised idealism, and Davis and his kind had succeeded in vilifying unions, immigrants, and welfare cases, making them carry the can for the greed of bankers and Wall Street sharks, thereby somehow convincing sane people that the poorest and weakest in the nation were responsible for most of its ills. What never ceased to amaze Tate was that many of those same individuals (the dirt-poor, the unemployed, the welfare recipients) listened to his show, even as he castigated those (the union organizers, the bleeding-heart liberals) who most wanted to help them.

The IMF also said its own analysis of the future development of debt was wrong ‘by a large margin.’ … The IMF had originally projected Greece would lose 5.5% of its economic output between 2009 and 2012. The country has lost 17% in real gross domestic output instead. The plan predicted a 15% unemployment rate in 2012. It was 25%.

A few years ago the Republican congresswoman Michele Bachmann remarked that if the minimum wage were repealed, “we could potentially virtually wipe out unemployment completely because we would be able to offer jobs at whatever level.” If you accept her logic, why stop there? After all, slavery was a full-employment system.

Today confidence in our country – internally and externally – is waning. Since 2009 we have been losing the war against corruption, poverty and unemployment. Our economy is growing at appalling levels compared to the rest of the continent. We are no longer the darlings of the world. If the increase in what are called ‘service delivery protests’ is anything to go by, we are no longer the darlings of our own people either.10

Greece can balance its books without killing democracy Alexis Tsipras | 614 words OPINION Greece changes on January 25, the day of the election. My party, Syriza, guarantees a new social contract for political stability and economic security. We offer policies that will end austerity, enhance democracy and social cohesion and put the middle class back on its feet. This is the only way to strengthen the eurozone and make the European project attractive to citizens across the continent. We must end austerity so as not to let fear kill democracy. Unless the forces of progress and democracy change Europe, it will be Marine Le Pen and her far-right allies that change it for us. We have a duty to negotiate openly, honestly and as equals with our European partners. There is no sense in each side brandishing its weapons. Let me clear up a misperception: balancing the government’s budget does not automatically require austerity. A Syriza government will respect Greece’s obligation, as a eurozone member, to maintain a balanced budget, and will commit to quantitative targets. However, it is a fundamental matter of democracy that a newly elected government decides on its own how to achieve those goals. Austerity is not part of the European treaties; democracy and the principle of popular sovereignty are. If the Greek people entrust us with their votes, implementing our economic programme will not be a “unilateral” act, but a democratic obligation. Is there any logical reason to continue with a prescription that helps the disease metastasise? Austerity has failed in Greece. It crippled the economy and left a large part of the workforce unemployed. This is a humanitarian crisis. The government has promised the country’s lenders that it will cut salaries and pensions further, and increase taxes in 2015. But those commitments only bind Antonis Samaras’s government which will, for that reason, be voted out of office on January 25. We want to bring Greece to the level of a proper, democratic European country. Our manifesto, known as the Thessaloniki programme, contains a set of fiscally balanced short-term measures to mitigate the humanitarian crisis, restart the economy and get people back to work. Unlike previous governments, we will address factors within Greece that have perpetuated the crisis. We will stand up to the tax-evading economic oligarchy. We will ensure social justice and sustainable growth, in the context of a social market economy. Public debt has risen to a staggering 177 per cent of gross domestic product. This is unsustainable; meeting the payments is very hard. On existing loans, we demand repayment terms that do not cause recession and do not push the people to more despair and poverty. We are not asking for new loans; we cannot keep adding debt to the mountain. The 1953 London Conference helped Germany achieve its postwar economic miracle by relieving the country of the burden of its own past errors. (Greece was among the international creditors who participated.) Since austerity has caused overindebtedness throughout Europe, we now call for a European debt conference, which will likewise give a strong boost to growth in Europe. This is not an exercise in creating moral hazard. It is a moral duty. We expect the European Central Bank itself to launch a full-blooded programme of quantitative easing. This is long overdue. It should be on a scale great enough to heal the eurozone and to give meaning to the phrase “whatever it takes” to save the single currency. Syriza will need time to change Greece. Only we can guarantee a break with the clientelist and kleptocratic practices of the political and economic elites. We have not been in government; we are a new force that owes no allegiance to the past. We will make the reforms that Greece actually needs. The writer is leader of Syriza, the Greek oppositionparty