Do you understand what may actually have been the underlying cause of our economic meltdown?
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Zendo (
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August 1st, 2009
Rising productivity caused by employers refusal too raise wages way back in the 70s, coupled with incredible profits (brought about by labor’s frozen wages + increased productivity [brought about by new technologies]) multiplied by credit to those same workers = DISASTER….
Here is Richard Wolff with 4 and a half minutes of explanation:
Capitalism Hits the Fan
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7 Answers
i think you just answered yourself.
we did have a good time in the 1980s though. young baby boomers charged the hell out of plastic, but did not feel the crunch of it until mid 1990s. we paid off our debts though when we got a clue. the baby boomer generation seems to be safe it seems. it’s our children and grandchildren that will have to pay thru the #$%
People bought things they couldn’t afford because banks/other financial institutions led them to either believe that it didn’t matter that we couldn’t afford the items we wanted to buy or we were led to believe that somehow we’d be able to afford those items once it finally came time to pay for them.
I lent £20 to my best friend and he said he’d pay me back the next week, it took two months. That’s what started it.
As counterintuitive as this might sound: too many investors looking for potential debtors. Eventually this was bound to fail. Why? The widening gap between the rich and poor. I read a very interesting article in ‘Die Zeit’, a German nationwide weekly newspaper.
I just hope that non of this is involved, because that sort of thing usually leads to a bad place.
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