Regular readers of this blog know that one of my main themes is that the world capitalist economy is now in a Long Depression (see my book, The Great Recession and this post from 2011,
http://thenextrecession.wordpress.com/2011/09/18/it-feels-like-a-depression/), led by the major advanced capitalist economies
(http://thenextrecession.wordpress.com/2012/10/05/the-long-and-winding-road/ and http://thenextrecession.wordpress.com/2013/02/10/why-is-there-a-long-depression/).
By a Long Depression, I mean economies growing consistently at well below their previous trend rates, with unemployment stuck at well above previous levels before the Great Recession, and disinflation (slowing inflation) turning into deflation (falling prices). Above all, it is an economic environment where investment in productive capital is way below previous average levels, with little sign of pick-up
(http://thenextrecession.wordpress.com/2011/11/25/us-investment-strike/). Indeed, this depression is now reaching the so-called emerging economies, where, even with their large supplies of cheap labour and imported new technology, real GDP growth is also slowing.
This designation has not had a lot of support among…
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