Has the World Run Out of Spare Capacity? – NYTimes.com

January 23, 2011

But this overall picture hides a sharp divergence between advanced and emerging economies:


Emerging economies are well above previous peak, and arguably more or less back to trend. Advanced economies, however, are still well below pre-crisis output, let alone the pre-crisis trend. No wonder, then, that we’re seeing inflationary pressures in the South even as disinflation remains the rule in the North.

The rising “emerging” economies are most adpet at using local elites to expand a small middle class as instrument of larger capital flows. The question is, will such people drop rising expectatins for saner ecological and social justice paradigms?
In the developed world one can see the need for a reboot is necessary.

Obama is focued on job growth. but the real issue is income distribution to purchasing power is widespread. Nixon had discussed a guaranteed annual wage. Shouldn’t we rethink that possibility?

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