Why They Hate the Great Depression:

I know, I know.  I don't know a damn thing about economics.  Luckily I blog so it doesn't matter.  Here is why rich people hate the Great Depression: 1) The Business Class screwed up royally and wrecked the economy and a lot of rich people got less rich and even went broke; 2) Interventionist state policy actually worked to fix it:

 

Of the various sins committed by Roosevelt, Keynes et al, it is the fact that their policies worked that is the scaries to the "conservatives."  Note how a return to more "orthodox" (read: non-interventionist return to 20's-style) slows the recovery.  

If you don't believe me, ask Brad Delong, he's the guy I stole this chart from.

Keynes, Our Economic Times and a Liberal Education

The world-traveling alum strikes again with this find in Asia Times.  The article begins with a quote by Keynes, which should be enough to lure you in...

The power to become habituated to his surroundings is a marked characteristic of mankind. Very few of us realize with conviction the intensely unusual, unstable, complicated, unreliable, temporary nature of the economic organization by which Western Europe has lived for the last half century. We assume some of the most peculiar and temporary of our late advantages as natural, permanent, and to be depended on, and we lay our plans accordingly. On this sandy and false foundation we scheme for social improvement and dress our political platforms, pursue our animosities and particular ambitions ... [John Maynard Keynes, The Economic Consequences of the Peace], 1920

Keynes was a genius. Read the article and see what kind of shape we're in and what kind of thinking it's going to take to get us out.  GCS students, you'll be reading some of this.

When students graduate with an interest and some understanding of the world I feel a sense of pride and a renewed belief in the liberal eduation.

Meanwhile in Haiti

If you've seen Life and Debt, a great documentary about IMF and World Bank monetary policy and its implications for small economies, you'll recognize what's happening in Haiti:

"37 % de la récolte de riz a été perdue dans la plaine de l'Artibonite, la principale région productrice du pays", souligne Maurepas Jeudy, le directeur d'Oxfam Intermon en Haïti. "Les désastres climatiques se sont ajoutés à la crise alimentaire qui sévissait dans le pays. Depuis les années 1980, les gouvernements successifs ont appliqué des politiques néolibérales qui ont fait des dégâts considérables, dit-il. Avant 1986, la production rizicole couvrait 80 % des besoins. Aujourd'hui, plus de 80 % de la demande est importée. C'est la même chose pour le maïs, les haricots ou les oeufs."  [Le Monde]

In summary, the climate crisis has combined with neoliberal policy which means that a country that produced 80% of its own rice in 1986 now produces about 20%.


Globalizing forces, as I've noted in this blog many a time, have the power to bring positive transformation.  Unfortunately it is all to often the case that free market ideology is pushed with religious zeal upon weak entities like Haiti or Jamaica.  The "details" of local markets, local demands, environment and, most importantly, social justice are left in the dust as the "free market" takes over to "work its magic." 

Remember global citizens and students folks:

• Vibrant democracy is not necessary for vibrant capitalism (China).
• Free market for industry is not necessarily a free market for local producers (Haiti, Jamaica, etc.).
• Freedom to trade often means subjugation to the effects of that trade, or to put it another way: we always need to weigh "freedom to" and "freedom from."

Keynes is making a comeback thanks to the fantabulous flubs of financiers, but sensible trade will only work if we citizens have a coherent and persistent argument to influence our so-called leaders.

Casino Unroyal

Keynes:

"When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done"