New Deal 2.0 – Will the stimulus result in global recovery?

DESPITE the announcement of various stimulus packages intended to reboot the World Economy, the saga of boom and bust continues, spurred on by growing awareness of the structural inequalities that have been built into the so-called free-market. There is rising anger at the “pork-barrel” spending in the US to save industries mired in a bizarre addiction to debt that has lead to the absurdity of binge-spending, over-weight executives and complete disregard for value on the triple bottom line i.e., economics, ecology and social consequences.

It is as if the whole world, (that’s us) are all now being asked to fund the spending habits of a few executives and to pay the resulting bill for engaging in no-holds-barred capitalism, with more capital (an increase in the money supply) while half of the world lives on $1 a day.

The questionable Keynesian policies being rolled out by Big Government in the interest of Big Business ignores the simple problem – exactly what is it that is going to be stimulated, and what will the consequences be of saving the banks, corporates and industrial oligarchies in the West that have lead us all into the mess in the first place?