Rot: the private sector angle

In a post yesterday, I showed how public investment, net of depreciation, in the U.S. is barely above 0, meaning that fresh expenditures on long-lived assets like schools and roads are running just slightly ahead of the decay of existing infrastructure. You might think, given neoliberal orthodoxy, that the private sector is taking up the slack. It isn’t. The graph below shows net private nonresidential fixed investment as a percent of GDP. Net means less depreciation (the declining monetary value of existing assets over time, as they wear out and grow obsolete);… Read More

Paulie cribs from me again

Krugman discovers rentier interests—finally. Only my version is better. Me, in Wall Street, 1996: [B]ehind the abstraction known as “the markets” lurks a set of institutions designed to maximize the wealth and power of the most privileged group of people in the world, the creditor–rentier class of the First World and their junior partners in the Third. Paul Krugman, today: I was originally going to end this post by saying something about stupidity, but that’s not right: the people at the BIS aren’t stupid. What’s going on here is something different and worse: we’re… Read More