> Therefore, the gigantic leaps in productivity
> gains we are seeing is occurring because of this heightened level of
> insecurity and the increased competition it is creating between workers
> due to very real and growing insecurity.
Just to add to what Doug mentioned, the problem for the neolibs is that any return of the bubble would require a massive amount of new debt, and the US financial system is unable to provide this. Despite all the talk of deleveraging, what's happening is that busted private loans are being socialized with government debt. The total debt burden hasn't really shrunk (though it's true many people are shedding debt by defaulting on their mortgages). Result: an economy which has stopped collapsing, but doesn't have enough fresh demand to generate new jobs.
That's why we urgently need a national jobs program, channeled via local and state spending. Big Government needs to do some Big Hiring.
-- DRR