Saturday, July 25, 2009

Insufficient Demand



Nobel laureate Joseph Stiglitz explains clearly the chain of events that led to the current crisis.

When wealth is concentrated in the hands of fewer and fewer individuals, demand for goods and services go down. The growing inequity of wealth distribution in society, and around the world, contributed to the financial system meltdown. The only solution to get out of the crisis is to return wealth and spending power to the middle class. The rich financial institutions are doing nothing but moving numbers around on paper, across electronic trading posts. Until real dollars are spent to pay for real products and services, passing through the hands of real people, not numbered accounts, no stimulus plan, no amount of bail-out, can save a country or the world from this disaster brought on by greed, arrogance, and selfishness.


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