[lbo-talk] sobering bulletin by McNally: Like We Said, It's a Global Slump

SA s11131978 at gmail.com
Fri Jan 14 07:32:24 PST 2011


On 1/14/2011 9:57 AM, pandora akkiraz wrote:


> None of this seems to faze the vast majority of business commentators, who
> display a manic ability to shrug off such facts in favour of any uptick they
> can find in some economic indicator or other. This is then quickly trumpeted
> as proof that the long-awaited recovery is underway and that all will soon
> be right with global capitalism.

When commentators in the business press talk about recoveries and upturns, they have something different in mind than David McNally. For them, a good economy is one where there are lots of opportunities for an investor or entrepreneur to make money. McNally is probably thinking about something more like an economy conducive to human welfare. If the economy returned permanently to trend growth, the volume of profit-making opportunities for investors would be back to a "normal" level - yet (by definition) the unemployment rate would stay stuck near 10%. Both things can happen at once.

SA



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