[Marxism] Inducing the Madness of Crowds

michael perelman michael at ecst.csuchico.edu
Thu Jul 8 22:47:14 MDT 2010


After losing a fortune speculating in the South Sea Bubble, Isaac Newton 
reportedly said that he could calculate the motions of heavenly bodies, 
but not those of the madness of crowds.
Today, millionaires and billionaires are pretty much united in the 
proposition that even kind of social provision must wither in order that 
the state can afford to clean up the mess that the wealthy have created. 
  In addition, raising their taxes is not only unfair, but destructive 
of health of the economy.  Yves Smith's opinion piece in the Times, 
largely lifted from her wonderful book, ECONned, reports how 
corporations are hoarding their cash.  They have also been investing in 
their own stock, which raises executive bonuses, which helps to amplify 
the obscene redistribution of income.
Of course, common sense shows that austerity is the worst policy in the 
face of an economic decline.  In a market economy, without consumer 
demand, business activity dries up.
I can understand why the millionaires and billionaires promote their 
self-interested ideology.  I can also understand why the democrats have 
joined in the millionaire and billionaire ideology rather than upset 
their base -- the millionaires and billionaires.

More at

http://michaelperelman.wordpress.com/2010/07/09/inducing-the-madness-of-crowds/

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com




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