In the post-2008 world, capital is even less interested in value creation that it was between 1979 and the Lehman Brothers’ moment. As these lines are being written, we are witnessing a remarkable phenomenon: While the states are scraping the bottom of the barrel to make ends meet (i.e. to finance the public sector and to re-finance public debt) nearly $3 trillion of idle corporate savings are slushing around in the UK and in Europe, too frightened by low demand to be invested in productive processes and activities. Instead of investing in machines and skilled labour, corporations throughout Europe are using the cash to buy back their own shares in a bid to push up short-term share prices and the executives’ bonuses that are linked to the company’s share price. In conjunction with the terrible architecture of the Eurozone, which is keeping eighteen nations in the clasps of permanent debt-deflation, Europe’s labour and society remain moribund and at the mercy of far Right sirens.
Posted on: Tue, 25 Mar 2014 20:42:05 +0000
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