Home > Economia e Política no Mundo > Os Furacões e as Forças do Mercado

Os Furacões e as Forças do Mercado

3 September, 2011 Leave a comment Go to comments

“Imagine, if you can, a natural disaster that would so devastate the US economy that it threw an average of over six million people out of work for four years, a dead-weight loss of 27 million working years.  It would be the Mother of All Hurricanes, and its name is  “Market Forces”.  There are big difference between hurricanes and market catastrophes.  First, the market catastrophes are much more devastating than hurricanes. […] What if US output had continued to grow at 2.5 percent, as it did in the 2000s before the catastrophe?  Despite all the prattle about a “New Economy”, this rate was not unusually high, well below the average of 1946-1999 (which was 3.6 percent).  The answer is shown in the chart below.  It measures GDP at the price level of the first six months of this year, eliminating increases do to inflation.  Had the “natural” working of financial markets not reeked havoc, and the economy continued to grow at 2.5 percent, the annual GDP for 2011 would be almost twenty trillion dollars, rather than the stagnant level of less than fifteen.  The accumulated loss for 2008-2011, dead-weight because it cannot be recovered, is $35 trillion (striped region in the chart), far more than double the public debt about which the US Congress is so obsessed” (John Weeks, Cost of Catastrophes, Natural and Unnatural)

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