The myth of the return to normal

15/08/2014 by socialistfight

The falling rate of profit is, and has been for many decades, truely global and its global effects can only be seen in this type of study. TYhis is capitalism’s future; Imperikalist wars without end. If you want to find the cause wars in Libya, Syria, Iraq, Ukraine and WWIII this is it.

Michael Roberts Blog

The latest economic data for the main capitalist economies is not encouraging for the optimists that the world economy is set to resume normal service.

Last week, we had the first estimate for US GDP for the period April to June (see my post, http://thenextrecession.wordpress.com/2014/08/01/the-risk-of-another-1937/ ). The US economy has been the better-performing top economy over the last few years. But even here, real GDP growth was just 2% yoy, well below the long-term average since 1946 of 3.3% a year.

The recovery has been weak.  In the five years after the Great Depression troughed in 1933, US nominal GDP (that’s before inflation is deducted) rose 52%. In the five years since the end of the Great Recession in mid-2009, US nominal GDP has risen only 18%.  The gap between US nominal GDP and where it would have been without the Great Recession remains wide – and even getting wider.

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WRP Explosion