One can be sure, however, it will be the working majority of the world including the Japanese workers and not the capital that will pay the price for the recovery. Austerity and higher taxes for the majority will become the norm of the fiscal policies of the world. And the rich and super-rich capitalists will be encouraged and allowed to deduct capital losses from income and business taxes while the majority will not.
After the ruling classes got back what they wanted from the majority, a next round of overproduction of product and over-accumulation of capital will take place as soon as the recovery reaches the peak. A further Great Stagnation is conceivable then.
Mark
Michael Perelman on Sunday, March 13, 2011 1:12 PM wrote:
Yes, some of the burden of surplus capital is removed.
> On Sun, 13 Mar 2011 10:48:57 -0400 Doug Henwood <dhenwood at panix.com>
> writes:
>> In these tough economic times, isn’t it nice to know that calamitous
>> natural disasters needn't have an adverse affect on your investment
>> portfolio? After the 8.9-magnitude earthquake in Japan failed to
>> induce a market nosedive, CNBC’s Larry Kudlow expressed his relief
>> in terms that seemed to appall even his fellow cheerleaders for
>> capitalism: “The human toll here,” he declared, “looks to be much
>> worse than the economic toll and we can be grateful for that.” (Skip
>> ahead to 0:38 on the video after the jump.)
>>
>>
-- Michael Perelman Economics Department California State University Chico, CA 95929
530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com
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