okay i’m gonna try out an idea and tell me if it’s totally off base and wrong: the lack of a robust welfare state in the us is a determinant of financial crises for three reasons 1) pension funds are big institutional investors seeking yield in risky products,
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2) stagnant wages mean people rely on consumer credit to make up the gap in their income, and 3) asset ownership is a key part of financial stability so people go into debt to get that - is this anything like reality?
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Replying to @lionel_trolling
It's interesting to think of Keynesian economics (including mass consumer credit) as an American alternative to a robust welfare state. Perhaps explains difference between, say, post-war Germany and USA.
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Replying to @MattNoahSmith @HeerJeet
but it’s not fair to say keynesian because a lot of the deregulation is neoliberal in inspiration
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right, but there's a way in which Keynesianism, at least in its bastard form, helped set the road to neo-liberalism.
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