Thursday, August 18, 2011

Nouriel Roubini : Karl Marx was right that redistribution of income and wealth from labour to capital could lead capitalism to self-destruct

Nouriel in his recent article "Is capitalism doomed?" illuminates the evils of capitalism epitome most perfectly in the world by Singapore. Below are some of its excerpts, and it really seems to be bad plagiarism from "Das Kapital". How about an "Operation Spectrum" for Roubini when he visits Singapore.

Inequality leads to over-capacity
So Karl Marx, it seems, was partly right in arguing that globalisation, financial intermediation run amok, and redistribution of income and wealth from labour to capital could lead capitalism to self-destruct (though his view that socialism would be better has proven wrong). Firms are cutting jobs because there is not enough final demand. But cutting jobs reduces labour income, increases inequality and reduces final demand.

Note: This problem is solved by piling debt ponzi on people. Thats why we have 30 years housing mortgages.

Flares of fledging revolution
Recent popular demonstrations, from the Middle East to Israel to the UK, and rising popular anger in China - and soon enough in other advanced economies and emerging markets - are all driven by the same issues and tensions: growing inequality, poverty, unemployment, and hopelessness. Even the world's middle classes are feeling the squeeze of falling incomes and opportunities.

Tax progressively and invest on production
The right balance today requires creating jobs partly through additional fiscal stimulus aimed at productive infrastructure investment. It also requires more progressive taxation; more short-term fiscal stimulus with medium- and long-term fiscal discipline; lender-of-last-resort support by monetary authorities to prevent ruinous runs on banks; reduction of the debt burden for insolvent households and other distressed economic agents; and stricter supervision and regulation of a financial system run amok; breaking up too-big-to-fail banks and oligopolistic trusts.

Note : Right now in Singapore, the exact opposite occurred. Asset inflation, hollowing out of productive industries and parasitic growth of financial industries.

Success of Singapore in another angle
Another question arises, why does shitbag LKY is so successful while running his kingdom inequitably?

I would provide the answer on future blogs but I would want readers to imagine a Singapore on the size of the world. If that happened, revolution will occur tomorrow. In short, Singapore is an anomaly parasitic state which survive by sucking out vitality from others, by means of money laundering, wage arbitration..etc.

No comments: