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The Failure of Laissez Faire Capitalism and Economic Dissolution of the West

Tuesday, June 11, 2013

Author: Paul Craig Roberts

Paperback: 190 pages
Publisher: Clarity Press (June 1, 2013)
Language: English
ISBN-10: 0986036250
ISBN-13: 978-0986036255
Product Dimensions: 9 x 6 x 0.5 inches

"Once a land of opportunity, America is being polarized by globalism into rich and poor. The denial of this reality has become an art form for economists."

PAUL CRAIG ROBERTS

SYNOPSIS

This book is a major challenge both to economic theory and to media explanations of the ongoing 21st century economic crisis. It outlines how the one percent have pulled off an economic and political revolution. By offshoring manufacturing and professional service jobs, US corporations destroyed the growth of consumer income, the basis of the US economy, leaving the bulk of the population mired in debt. Deregulation was used to concentrate income and wealth in fewer hands and in financial corporations "too big to fail." Bailouts remove financial corporations from market discipline and force taxpayers in the US and EU to cover banksters' gambling losses.

Environmental destruction has accelerated as economists and corporations refuse to count the exhaustion of nature’s resources as a cost, imposing it on the environment and on third parties who do not share in the profits. In much of the Third World the growth model imposes monocultures that deprive people of independence and self-sufficiency

The American people do not benefit. In fact, "Globalism," Roberts writes,"is a conspiracy against First World jobs." In addition to offshoring, business leaders are replacing Americans with foreigners in those jobs that they find convenient to retain in the US. Fraudulently claiming that they cannot find enough Americans with science and engineering degrees to fill the jobs, they successfully lobby Congress for work visas for foreigners, who replace American scientific, engineering, and technical employees at substantially lower costs in order to concentrate income and wealth at the top.

No one seems to understand that research, development, design, and innovation take place in countries where things are made. The loss of manufacturing means ultimately the loss of engineering and science. The newest plants embody the latest technology. If these plants are abroad, that is where the cutting edge resides.

According to a new United Nations Development Program report, the US ranks third among states with the worst income inequality, after Hong Kong and Singapore. Clearly in the US the ladders of upward mobility have been taken down. The US is no longer an opportunity society.

There is no economic recovery.

"Economists who have spent their professional lives rationalizing “globalism” as good for America," Roberts writes, "have no idea of the disaster that they have wrought." As a result, the United States has become a failed democracy. Washington has no concern for the economic welfare of citizens or for their civil liberties or those of its European puppet states. Washington serves the interest groups that control it, and these groups are committed to financial fraud, war, and disinformation. The economic recovery announced in June 2009 is nonexistent.

This is the book to read for those who want to understand the agenda that is bringing the West to its knees.

Praise for this book from Michael Hudson and Nomi Prins

“In his inimitable way, Roberts describes how the rhetorical patter talk about free-markets is a cover story for the horror of an extractive asset-stripping operation by publicly-supported private banks and the governments that they control that impoverishes people and the environment. He shows that unrealistic assumptions made by free-trade ideologues have led to the “New Dispossession” and a political and economic race to the bottom, applauded as a success story by junk economists, who ignore the reductions in living standards and rise in environmental instability.Roberts describes how Germany’s economic surplus is being used to serve private European financial predators, and how the highly touted “foreign investment in America” consists of the use of credit and trade surpluses that foreign countries have with the import-dependent US to finance the foreign purchase of the US economy, rather than to provide new capital formation that would re-employ Americans dispossessed by jobs offshoring.” - MICHAEL HUDSON

“The Failure of Laissez Faire Capitalism, is fearless. It transcends Roberts’ illustrious career and prior works of intellectual and practical analysis. We are at the crossroads of a crumbling world where both policies and ideologies have failed. Roberts shows the dangers of clinging to the idea that markets are free and to the belief that unrestrained and unregulated capitalism is positive. Jobs offshoring destroyed middle class prospects, and financial deregulation fostered a rapacious banking industry that has removed itself from market discipline and threatens Western economies with collapse. Roberts’ conclusions are sobering, his solutions bold, his book a compelling gift.” - NOMI PRINS

"Clearly, this empirically based, theoretically challenging book is one of the most important works of our time – JOHANNES MARUSCHZICK- from the Preface to the German Edition

TABLE OF CONTENTS

Preface to the European Edition
by Johannes Maruschzik
Regulation vs deregulation
The Error of Free Trade
From Crony Capitalism to Plutocracy
How much longer reserve currency?
Quo vadis Europe?
The end of the European national states
Critique of the growth model

Introduction

Part One: Problems in Economic Theory
Microeconomics
Macroeconomics
Free Trade Error
Offshoring Exports Jobs Instead of Products
The Problem of External Costs
Nature’s Capital
Planning for a Full World
Failures of Economic Theory Are Pervasive
The Failure of Laissez Faire Capitalism

Part Two: The New Dispossession
Political Dispossession
Economic Dispossession
Social Dispossession
Offshoring Displaced First World Americans
The Evidence from the Bureau of Labor Statistics
The Myth of Benevolent Globalism
Dissenters from the Myth of Benevolent Globalism
The Decimated American Economy
Unemployment
Inflation
Gross Domestic Product
US Wealth and Income Distribution
Lies That Killed The American Dream: The Science and Technology
Skills Shortage Myth
Where did the Money Go?
Fraud by Banksters
The Conflict of Interest That Masquerades as Government
Death by Globalism

Part Three: The End of Sovereignty
The Undeclared Agenda
Can Germany Remain a Sovereign Country?

Conclusion

Appendix

Index

About the Author

The Honorable Dr. Roberts was Assistant Secretary of the US Treasury in the Reagan administration, a member of the US Congressional staff, associate editor and columnist for the Wall Street Journal, columnist for Business Week, the Scripps
Howard News Service, and Creators Syndicate, Senior Research Fellow, Hoover Institution, Stanford University, and was appointed to the William E. Simon Chair in Political Economy, Center for Strategic and International Studies, Georgetown University. 

He is chairman of the Institute for Political Economy and author or coauthor of ten books and numerous articles in scholarly journals. He has testified before committees of Congress on 30 occasions.  Dr. Roberts was awarded the US Treasury’s Meritorious Service Award for “outstanding contributions to the formulation of US economic policy,” and France’s Legion of Honor as “the artisan of a renewal in economic science and policy after half a century of state interventionism.”

He was educated at Georgia Tech, the University of Virginia, the University of California, Berkeley, and Oxford University where he was a member of Merton College.

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