- by New Deal democrat
Six years ago I posted an essay on Daily Kos entitled The Progressive Economic Case: Inequality,not Armageddon. On this final Sunday of 2013, I think it remains timely. I've posted it below in somewhat abridged from. To put it in context, two months previously in an essay called The Panic of 2008? I had said:
[E]very now and then it is prudent to be fearful. Not panic-stricken, but instilled with enough caution to focus on a serious problem, to check and double-check if one's house is truly in order.
Now appears to be such a time....
There is an excellent chance that the dominant issue of the 2008 election campaigns will not be Iraq nor Iran nor executive power nor immigation, It will be the economy, in the form of this "Panic. "
....Now here is my January 2008 essay:
This is NOT the Great Depression II. Nor is this the stagflationary 1970s. It is going to unfold as some other Beast. Only the broad outlines of this Beast appear discernable now: it will likely feature (1) increasing import prices; (2) wage stagnation (that does not keep up with price inflation; (3) real asset deflation; and (4) possibly a Japan-style "liquidity trap."