. . .
>The regime of the political business cycle would be an artificial
>restoration of the position as it existed in nineteenth-century
>capitalism. Full employment would be reached only at the top of the
>boom, but slumps would be relatively mild and short-lived.
Doug Henwood
>>>>>>
This doesn't seem to have aged well. Arguably
right now business leaders and rentiers are as
happy as clams, or ought to be. Profit rates
and growth in inequality are high, the public
budget is going nowhere, and asset price rises
are making people richer than they dreamed
they could be.
Right now I don't see much business pressure to
cool things off. Maybe I don't read enough
of the biz press. It seems to me that the
stock market bubble and employment are linked
in the public's mind, and the value of the first
outweighs possible disadvantages from the second.
The real pressure is from the Fed and some
sectors of elite opinion, and maybe the bond
market. It seems more ideological than
based in material interest.
The only thing biz wants that is in some peril
is trade liberalization. Fortunately they have
critical support from Rakesh. That should put
them over the top.
mbs
