PLAN B TO AVOID ECONOMIC RECESSION

Plan B to Avoid Economic Recession

Plan B to Avoid Economic Recession

Introduction

That today the economic situation is worrying is an understatement. Remember that it looks suspiciously like that of 1929, each passing day becomes obvious a bit heavier, but after 1929 occurred in 1933, then world war. Those who think that Hitler only happens once, and that history has finally adopted by the spread of democracy, and development of the great market, have not watched much of the evolution European politics. The same causes produce the same effects: the programmed destruction of the middle classes in countries most affected, and the impoverishment of the less favored classes, provides the electoral battalions of adventurers. Therefore it is vital to overcome the current economic crisis, and to denounce the policies of fiscal restraint, which will throw us right into a serious deflationary crisis. To do this you must understand the true origins of the current slump and provide solutions (Darity, 2008, 3002-306).

Discussion

Understand the current crisis.

Whether one deplores or not, remember that our society is primarily a consumer society, and a consumer society works, even if this seems like a tautology, it is necessary that households consume. But what are we witnessing the last 5 years? 

Half a century later everything will be forgotten, and the hunt for wages was reopened, under the pretext of containing costs, to focus on supply conditions without regard to demand conditions. As prune a tree, sitting on the branches that you want to cut. The same causes produce the same effects: the Roaring Twenties, which preceded the Great Depression, are quite comparable to those that preceded crazy year of 2008: casino economy, enhancements and fabulous questionable, financial scandals and repeated political. 

Exit the debt trap

Decrease at any cost public spending drastically to reduce deficits and escape the punishment of financial markets, will only lead to one thing: turn the crisis into deflationary depression which we will not get us out more, because central bankers will have a hard time getting their rates below zero in an attempt to revitalize the economy (Wray, 2001, pp. 257-260). However it is clear that the debt burden becomes unsustainable for state government finances. We must therefore stop us hand and foot related to financial markets that do not aim to go beyond the search for short-term profits. For this we must find other cheaper resources, and especially that reduce our dependence on markets. They are called domestic borrowing. Why not restructure the debt of U.K. by issuing bonds for individuals at rates close to the A booklet, the booklet A as tax-exempt, and even lower rates to those who repatriate their capital from abroad with a promise of tax amnesty?

Reorient public spending, lead by example, encourage merit, unlock society

Markets have this perverse: they expect from the States economies, but they fear a collapse in demand. This is why it is necessary to send a strong signal of support for consumption. That is why the British government should develop its policy.

Against all odds we must maintain the progress of the purchasing power of officials, especially ...