the politics and economics of "economic downturns"

one thing that is certain about capitalism, is that there are cycles - one where things are great and one where things aren't so great...

it surprises me that the people that should know this (ie the econocrati) seem to be like the rabbit caught in the headlights - OMG why didn't we see this coming...

one article I read had a look at which of the econocrati (those from Australia) were able to better predict likely movements in the global and local economy. let's just say the results were not impressive... those who were more critical of orthodox economics seemed to fare better...

so the politics of this... analysts want to talk about interest rate movements, recession, unemployment rates, debt ratios, forgetting that there are people affected by what happens in that amorphous "global economy" and the "credit crunch"... whilst $950 may not seem like much to spend, but it is one way for people to spend/pay debts (and free up money for investment)... the contraction in the building/construction industry the schools funding is likely to decrease possible lay offs and possibly create jobs and not just in one geographical area...

I'm not a big fan of Keynesianism, but clearly the rational expectationists/general equilibrium theorists haven't got it right either... hell I'm not a big fan of capitalism either... but given the situation and not knowing how long the bumpy ride is likely to go on for, I'd like $950 to possibly buy something to cushion the impact...

this is really long hand for - pass the bloody stimulus package in the Senate!

Ps, I'm meeting a possible adoptee tomorrow, a male cat this time... I'm excited!