Follow this link to an article on Alternet.com that is the most complete analysis of the current economic situation that I have read so far.
The article does not contradict anything I learned in my college economic classes over 40 years ago. I’ll leave it up to my readers whose knowledge is more up-to-date than mine to comment on whether the ideas in the article are still appropriate.
I am a little disconcerted about the remarks on the death of free market capitalism. These things tend to swing to the extremes. Admittedly what has been allowed to happen in the last 30 years has gone to one extreme. I hope that is not used to justify going to the opposite extreme. I guess it is hard to stop a pendulum at exactly the bottom of its swing.
Let me put it into a more common framework than the electrical engineering one that I usually use. There are some car drivers known to be all accelerator or all brakes. The more efficient drivers know to use either pedal in moderation and to sometimes keep the foot off of either pedal. Not only is it more efficient, but it leads to a smoother ride for the passengers. (For my engineering oriented readers, all brakes or all accelerator would be the equivalent of a bang-bang control system.)
Again, thanks to GinnySL for sending me the above link to the article.
My post on Why Buy the Imitation is highly relevant to the contents of this post although you would never know it by the title.