I guess you are in for awakening OP.
Even the "mainstream" economists are starting to admit we could see a collapse.
You can try and make as many diflections as possible, but numbers don't lie.
Quoting: *HEISENBERG* No, only the chicago/austria school of economists are screaming from rooftops about economic collapse. Those who don't follow this discredited model know that once unemployment reduces, there will be a huge jump in consumer spending which will fuel high growth. Once US and global economy recovers and starts growing, people will forget about debt. Please check the debt to gdp ratio during Clinton years. Did anyone care at that time?
If you hadn't noticed, unemployment is not imroving.
The only reason the governments numbers have dropped a little bit, is because people have given up looking for work.
The outlook for unemployment in the near future is also bleak.
Whose fault is that? The very capitalists who fund the chicago school of economists and preach that govt should cut down social spending. How would austerity increase employment? Austerity failed miserably in Europe, so why would it succeed in US?
Big business can use technology and cheap outsourced labor to get work done. So why would they care about high unemployment? Only US govt can reduce it by increasing spending. But the republicans (read big business) are not cooperating. Why?
Read this..
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link to www.newyorker.com]
As one would have expected on the basis of the textbooks, the American economy, while hardly racing ahead, has fared considerably better than its British counterpart. Between 2010 and 2012, G.D.P. growth here has averaged about 2.1 per cent. For the U.K., the figure is 0.9 per cent. What may be more surprising—at least to those of you who have been listening to the deficit hawks—is that the United States, while sticking with Keynesian stimulus policies, has also managed to bring down the size of its deficit, relative to G.D.P., almost as rapidly as hairshirt Britain has. Back in 2009, at the depths of the recession, both countries had double-digit deficits. Today, the U.S. deficit stands at about seven per cent of G.D.P., and the British deficit is about five per cent of G.D.P. But with the U.S. growing faster than the U.K,. the gap is set to close. Next year, according to the latest forecasts from the Congressional Budget Office and the O.B.R., the U.S. deficit will be considerably smaller than the U.K. deficit: four per cent of G.D.P. compared to six per cent.
Let’s go over that one more time. Having adopted the policies of Keynes in response to a calamitous recession, the United States has grown more than twice as fast during the past three years as Britain, which adopted the economics of Hoover (and Paul Ryan). Meanwhile, the gaping hole in the two countries’ budgets has declined at roughly the same rate, and next year the U.S. will be in better fiscal shape than its old ally.
