Zombinomics
Spengler coins a new term for the U.S. economy: Zombinomics.
"You want to know what's going to happen, comrade? Read the Five Year Plan. With 40% of US personal income coming from transfer payments, it's almost nostalgic to call it capitalism.
The so-called American economic recovery won't die, because it's undead. It was a zombie to begin with. Equity investors during the past six weeks came to the collective conclusion that the US is not in the early phase of an economic recovery, but in the endless middle of a structural slump, in the term of Nobel Prize winner Edmund Phelps."
Don't buy it?
Let's look at the political implications with Gerald Seib's recent Wall Street Journal column:
"Mitt Romney, who on Monday night took to a New Hampshire debate stage with his Republican presidential competitors for the first time, just might be the beneficiary of a flight to safety right now.
"You want to know what's going to happen, comrade? Read the Five Year Plan. With 40% of US personal income coming from transfer payments, it's almost nostalgic to call it capitalism.
The so-called American economic recovery won't die, because it's undead. It was a zombie to begin with. Equity investors during the past six weeks came to the collective conclusion that the US is not in the early phase of an economic recovery, but in the endless middle of a structural slump, in the term of Nobel Prize winner Edmund Phelps."
Don't buy it?
Let's look at the political implications with Gerald Seib's recent Wall Street Journal column:
"Mitt Romney, who on Monday night took to a New Hampshire debate stage with his Republican presidential competitors for the first time, just might be the beneficiary of a flight to safety right now.
In what is turning out to be an odd Republican quest to find a nominee, upheaval and uncertainty have been the watchwords. People who were supposed to run haven't, and people who were supposed to be serious forces (Newt Gingrich and Sarah Palin) haven't been. Dark horses have remained dark."
Zombies indeed.
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