Power of Story Send a Tweet        

Share on Google Plus Share on Twitter 1 Share on Facebook 4 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 25 (30 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   5 comments
OpEdNews Op Eds

The Vicious Circle of Debt and Depression: It Is a Class War

By       Message Ismael Hossein-zadeh       (Page 2 of 10 pages) Become a premium member to see this article and all articles as one long page.     Permalink

Related Topic(s): ; ; ; ; ; ; , Add Tags  Add to My Group(s)

Must Read 8   Well Said 5   Valuable 5  
View Ratings | Rate It

opednews.com

Author 2154
Become a Fan
  (11 fans)
- Advertisement -

Not only is this unfair (it is, indeed, tantamount to robbery, and therefore criminal), it is also recessionary as it can increase unemployment and undermine economic growth. It is reminiscent of President Herbert Hoover's notorious economic policy of cutting spending during a recession, a contractionary fiscal policy that is bound to worsen the recession. It is, indeed, a recipe for a vicious circle of debt and depression: as spending is cut to pay debt, the economy and (therefore) tax revenues will shrink, which would then increase debt and deficit, and call for more spending cuts!

- Advertisement -

Spending on national infrastructure, both physical (such as roads and schools) and social infrastructure (such as health and education) is key to the long-term socioeconomic developments. Cutting public spending to pay for the sins of Wall Street gamblers is bound to undermine the long-term health of a society in terms of productivity enhancement and sustained growth.

- Advertisement -

But the powerful financial interests and their debt collectors seem to be more interested in collecting debt claims than investing in economic recovery, job creation or long-term socioeconomic development. Like most debt-collecting agencies, the IMF and the states serving as banksters' bailiffs through their austerity programs may shed a few crocodile tears in sympathy with the victims' of their belt-tightening policies; but, again like any other debt-collecting agents, they seem to be saying: "sorry for the loss of your job or your house, but debt must be collected--regardless"!

A most outrageous aspect of the debt burden that is placed on the taxpayers' shoulders since 2008 is that most of the underlying debt claims are fictitious and illegitimate: they are largely due to manipulated asset price bubbles, dubious or illegal financial speculations, and scandalous conversion of financial gamblers' losses into public liability.

- Advertisement -

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9  |  10

 

- Advertisement -

Must Read 8   Well Said 5   Valuable 5  
View Ratings | Rate It

opednews.com

Ismael Hossein-zadeh is a professor of economics at Drake University, Des Moines, Iowa. He is the author of the newly published book, The Political Economy of U.S. Militarism His Web page is http://www.cbpa.drake.edu/hossein-zadeh

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Vicious Circle of Debt and Depression: It Is a Class War

An Insidious Threat to the Occupy Movement

Are They Really Oil Wars?

Islamic Fascism?

Redistributive Militarism: Escalating Military Spending as Disguised Income Redistribution from Bottom to Top

The Militarization of the World: The Case of Iran