Not So Fast: the Post Pandemic Slump And The Long Depression

Market fundamentalists are giddily celebrating the infusion of Fed money into the economy as if that is some kind of long-term fix. But in the world of the real physical economy, industrial production fell 5.4 percent in the last month. In addition, retail sales plunged 8.7 percent.  As long as workers cannot work, surplus value cannot be produced. If people are too poor to buy the products off the shelves, profits cannot be realized. The decline in world trade and the impact of the coronavirus hasn’t even peaked yet. No printing of money can get around these problems.

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