Wednesday, April 09, 2008
The Euro has skyrocketed, regulations keep small and medium size businesses afloat through government regulation, taxes are high, unions are as powerful as ever and the public sector is thriving. A recipe for disaster? If you were to read the Wall Street Journal, the Economist, the New York Times or any other liberal western media outlet you would think that this a description of a country in the depths of crisis but alas I describe Germany and Northern Europe where the economies, although beginning to slow at the moment, maintain growing wages, trade surpluses and continuing growth BECAUSE of the above recipe of government planning and state intervention, not in spite of it.
German exports boom.
The US on the other hand has thrown over the helm to the speculator class. One does not have to read Monthly Review to get an understanding of the power of finance capital of late. The fight between finance and manufacturing capital was at least a fair battle from the 30's to the 60's but since then the movement of money and capital has become the national religion and we have all, but particularly the working classes in the cities, have paid the price.
Here's how we got here.
The 2008 election will not solve the serious issues that have been in the making for 40 or so years. One of the primary reasons is the bait and switch of racism that much of the white working class has bought into, why exactly are my wages on the decline? It must be those immigrants and welfare! The other reason is that much of the suburban types that hold sway in the Democratic party like Wall Street, they have bet the farm on it and Hillbillary and Barack represent, and have represented, them well. It will take a lot more than a vote to change the direction of this massively leveraged ship.