http://monthlyreview.org/2008/12/01/financial-implosion-and-...
If you read that article and consult the (mostly government) sources, you'll see:
* It's not just government debt that is high - household, business, and especially financial debt is high
* The financial sector has been growing much faster than the "real" economy
* Less and less of the GDP goes to consumers in wages and salaries
* Industrial capacity utilization goes down and down and down (so why invest in new capital?)
* Since the 1980s, profits have been an increasing share of GDP, while investment has been going down
Macroeconomic collapse on the scale (or greater then) it happened in the 1930s will, I believe, inevitably happen.
http://monthlyreview.org/2008/12/01/financial-implosion-and-...
If you read that article and consult the (mostly government) sources, you'll see:
* It's not just government debt that is high - household, business, and especially financial debt is high
* The financial sector has been growing much faster than the "real" economy
* Less and less of the GDP goes to consumers in wages and salaries
* Industrial capacity utilization goes down and down and down (so why invest in new capital?)
* Since the 1980s, profits have been an increasing share of GDP, while investment has been going down
Macroeconomic collapse on the scale (or greater then) it happened in the 1930s will, I believe, inevitably happen.