Real Economics

Jayati Ghosh speaks about the current economic crisis.

The blinding gist of what she is saying is that the economic catastrophie is far greater than what caused the depression in scale and effect. Our resources are however far more sophisticated so recovery is inevitable. But for the first time ever, a redress of the conditions imposed by colonialism may occur. A genuine universal participation is now happening with the internet as the ultimate arbiter of relations between individuals anywhere.

In other words, there is a universal currency and the terms of trade between nations may no longer have much relevance. Everyone in the world now must be able to be wealthy or the system will not work. What we called “inflation” was the dilution of value. But how can more people be wealthy without more capital? Capital must grow alongside productivity.

Leave a Reply

Your email address will not be published. Required fields are marked *