How the Economy Was Lost: The War of the Worlds
Paul Craig Roberts
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The US economy has disintegrated, and with it into the abyss plummet the blueprints of neoliberal economists, whose theories about "the free market" have now gone the way of medieval alchemy. No voice has been stronger, no prose more forceful, than that of Paul Craig Roberts in predicting collapse. His weekly columns in CounterPunch have won an audience of millions around the world, grateful for a trained economist who can explain lucidly how the well-being of the planet has been held hostage by the gangster elite. Now Dr. Roberts has written the shortest, sharpest outline of economics for the twenty-first century ever put between book covers. He traces the path to ruin and lays out the choices that must be made. There is the "empty world" of corporate exploitation, abetted by the vast majority of economists; or the "full world" of responsible management and distribution of our resources. Amid crisis, this is the guide you've been waiting for.
Paul Craig Roberts was assistant secretary of the Treasury during President Reagan’s first term. He was associate editor of The Wall Street Journal and has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University; and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President François Mitterrand and is the co-author, with Lawrence M. Stratton, of The Tyranny of Good Intentions: How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice.
by Gomory and Baumol aside, I have shown, as has Herman Daly, that the two conditions on which comparative advantage depends no longer hold in the present-day world. One condition is that capital must be immobile internationally and seek its comparative advantage in the domestic economy, not move across international borders in search of lowest factor cost. The other condition is that countries have different relative cost ratios of producing tradable goods. Today, capital is as mobile
lying to Congress and the public about the amazing shortage of qualified Americans for literally every technical and professional occupation, especially IT and software engineering. Everywhere we hear the same droning lie from business interests that there are not enough American engineers and scientists. For mysterious reasons Americans with university degrees prefer to be waitresses and bartenders, hospital orderlies, and retail clerks. As one of the few who writes about this
needs where there is not a sufficient American workforce to meet their technology expertise requirements. However, H-1B and other work visa programs were never intended to replace qualified American workers. Certainly, these work visa programs were never intended to allow a company to retain foreign guest workers rather than similarly qualified American workers, when that company cuts jobs during an economic downturn. It is imperative that in implementing its layoff plan, Microsoft ensures that
themselves had long been comfortable with their own analysis that showed that tax cuts had a multiplied effect that expanded GNP and brought in more tax revenues. However, the Reagan administration, over whose forecast I had veto power as Assistant Secretary of the Treasury for Economic Policy, made no such forecast. As the official records clearly show, the Reagan administration forecast that every dollar of tax cut would lose a dollar of revenue. The Reagan deficits, small by today’s
“win-win” development. It was supposed to work like this: The U.S. would lose market share in tradable manufactured goods and make up the job and economic loss with highly-educated workers. The win for America would be lower-priced manufactured goods and a white-collar work force. The win for China would be manufacturing jobs that would bring economic development to that country. It did not work out this way, as Morgan Stanley’s Stephen Roach, formerly a cheerleader for globalization,