Here is a good quote that seems to go along with our other article on diminished future economic prospects The New Normal. The quote is by Jeremy Warner who was writing a story for the Daily Telegraph criticising economist and writer for the New York Times Paul Krugman for calling for more deficit spending. What makes the quote relevant for us is that he echoes many of the things we have already touched on here.
“As Raghuram Rajan, a former IMF chief economist, has argued, today’s troubles are not simply the result of inadequate demand, but of major changes in the world economy brought about by globalisation. The old monopoly of knowledge and expertise once enjoyed by advanced economies has been swept away. For decades, we compensated for the jobs and income lost to technology and cheaper foreign competition with unaffordable government spending and easy credit. Much of the growth enjoyed in these pre-crisis years was simply unsustainable”.
We can all only hope that both this blog, the author quoted, and many others are wrong because if not we are in for a much poorer existence. Here is the link to the story below.