Since 70% of the American Market and two thirds of the Western European market are supported by the consumer spending of ordinary workers, it is rather obvious that a well payed work force with discretionary spending is needed to support any economy. If you outsource industries and jobs to a few countries for cheap labor, and in source cheap labor to further drive down wages, the result is you destroy any market that is supported by high wages with discretionary spending.
Those few industrial countries with low wages cannot sell their goods to formerly developed countries that have lost their high income and discretionary spending. It doesn't matter if you bail out the banks, if you do not have the jobs and disposable income to support the economy.
The G20 is a group of very, very stupid people who are not about to give up their economic preconceptions and admit failure. Since all the major political parties on the right, and the so called left have bought into this nonsense, they need to be replaced by people of normal intelligence who will return to the nation state, as THE controlling element in economics. In countries that have an elective process, and might involve peaceful change. Other countries might use other means!
Pervis James Casey
Mar 27 2009 - 11:25am