"So what if the past thirty years were times of wage stagnation and decline, we have perfected a magnificent credit system (the main spur to consumption) that seemed to know no limits.
The bare truth is that what has been taken as economic expansion since the early 1970s was a symptom that the United States (and the UK and other European countries) have survived a genuine period of economic decline by means of a dramatic increase in the creation of huge amounts of fictitious capital. Fictitious capital is money that has no material basis, but is a speculation on future economic performance.."
Stanley Aronowitz teaches at the City University of New York and is the author of Left Turn: Forging a New Political Future (2006).
Many important articles and videos are available at www.socialistproject.ca.
to read Stanley Aronowitz' article "Facing the Economic Crisis" published December 26, 2008, click on