Amid all the strange, alarming and exciting things that have happened lately, the fact that real long-term (30-year) interest rates have fallen to zero has been largely overlooked. Yet this is the end of capitalism, at least as it has traditionally been understood. Interest is the pure form of return to capital, excluding any return to monopoly power, corporate control, managerial skills or compensation for risk. If there is no real return to capital, then then there is no capitalism. Not just a result of the pandemic. A trend that goes back to the GFC. Share this:Like this:Like Loading...
Topics:
John Quiggin considers the following as important: Uncategorized
This could be interesting, too:
Eric Kramer writes An economic analysis of presidential immunity
Angry Bear writes Protesting Now and in the Sixties and Seventies
Lars Pålsson Syll writes The non-existence of economic laws
John Quiggin writes The war to end war, still going on
Amid all the strange, alarming and exciting things that have happened lately, the fact that real long-term (30-year) interest rates have fallen to zero has been largely overlooked. Yet this is the end of capitalism, at least as it has traditionally been understood. Interest is the pure form of return to capital, excluding any return to monopoly power, corporate control, managerial skills or compensation for risk. If there is no real return to capital, then then there is no capitalism. Not just a result of the pandemic. A trend that goes back to the GFC.