The Failure of Laissez Faire Capitalism: Towards a New Economics for a Full World

The Failure of Laissez Faire Capitalism: Towards a New Economics for a Full World

by Paul Craig Roberts
     
 

Former Wall Street Journal editor, and Assistant Secretary of the US Treasury Paul Craig Roberts book is a major challenge both to economic theory and to media explanations of the ongoing 21st century economic crisis. The one percent have pulled off an economic and political revolution. By offshoring manufacturing and professional service jobs, US corporations

Overview

Former Wall Street Journal editor, and Assistant Secretary of the US Treasury Paul Craig Roberts book is a major challenge both to economic theory and to media explanations of the ongoing 21st century economic crisis. The one percent have pulled off an economic and political revolution. By offshoring manufacturing and professional service jobs, US corporations destroyed the growth of consumer income, the basis of the US economy, leaving the bulk of the population mired in debt. Deregulation was used to concentrate income and wealth in fewer hands and financial firms in corporations "too big to fail,” removing financial corporations from market discipline and forcing taxpayers in the US and Europe to cover bankster losses. Environmental destruction has accelerated as economists refuse to count the exhaustion of nature's resources as a cost and as corporations impose the cost of their activities on the environment and on third parties who do not share in the profits. This is the book to read for those who want to understand the mistakes that are bringing the West to its knees.

Editorial Reviews

From the Publisher
"The Failure of Laissez Faire Capitalism is fearless. It transcends Roberts' illustrious

career and prior works of intellectual and practical analysis." NOMI PRINS

"In his inimitable way, Roberts describes how the rhetorical patter talk about free-markets

is a cover story for the horror of an extractive asset-stripping operation by publicly supported

private banks and the governments that they control." MICHAEL HUDSON

"Clearly, this empirically based, theoretically challenging book is one of the most important works of our time." Johannes Maruschzik, Preface to the German Edition

Product Details

ISBN-13:
9780986036255
Publisher:
Clarity Press, Incorporated
Publication date:
06/28/2013
Pages:
191
Sales rank:
359,335
Product dimensions:
5.90(w) x 8.90(h) x 0.50(d)

Read an Excerpt

The collapse of the Soviet Union in 1991 and the rise of the high speed Internet have proved to be the economic and political undoing of the West. "The End Of History” caused socialist India and communist China to join the winning side and to open their economies and underutilized labor forces to Western capital and technology. Pushed by Wall Street and large retailers, such as Wal-Mart, American corporations began offshoring the production of goods and services for their domestic markets. Americans ceased to be employed in the manufacture of goods that they consume as corporate executives maximized shareholder earnings and their performance bonuses by substituting cheaper foreign labor for American labor. Many American professional occupations, such as software engineering and Information Technology, also declined as corporations moved this work abroad and brought in foreigners at lower renumeration for many of the jobs that remained domestically. Design and research jobs followed manufacturing abroad, and employment in middle class professional occupations ceased to grow. By taking the lead in offshoring production for domestic markets, US corporations force the same practice on Europe. The demise of First World employment and of Third World agricultural communities, which are supplanted by large scale monoculture, is known as Globalism.

For most Americans income has stagnated and declined for the past two decades. Much of what Americans lost in wages and salaries as their jobs were moved offshore came back to shareholders and executives in the form of capital gains and performance bonuses from the higher profits that flowed from lower foreign labor costs. The distribution of income worsened dramatically with the mega-rich capturing the gains, while the middle class ladders of upward mobility were dismantled. University graduates unable to find employment returned to live with their parents.

The absence of growth in real consumer incomes resulted in the Federal Reserve expanding credit in order to keep consumer demand growing. The growth of consumer debt was substituted for the missing growth in consumer income. The Federal Reserve's policy of extremely low interest rates fueled a real estate boom. Housing prices rose dramatically, permitting homeowners to monetize the rising equity in their homes by refinancing their mortgages.

Consumers kept the economy alive by assuming larger mortgages and spending the equity in their homes and by accumulating lar

Meet the Author

is former Assistant Secretary of the US Treasury in the Reagan administration, associate editor and columnist for the Wall Street Journal and Business Week. He served as Senior Research Fellow at Hoover Institution, and Stanford, and held the William E. Simon Chair in Political Economy at Georgetown University. Dr. Roberts has testified before committees of Congress on 30 occasions and was awarded the US Treasury's Meritorious Service Award for "outstanding contributions to the formulation of US economic policy”. He was educated at the University of California, Berkeley, and Oxford.

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