In this Smart Talk video series, Andrew Mazzone interviews Dr. Paul Craig Roberts and discuss the decline of US economy. Dr. Roberts talks candidly to Andy Mazzone about the “hubris and arrogance” in Washington,about powerful private interest groups that run the country,” about the effects of off-shoring and about the declining power of the United States and of the dollar.
This video is highlights how Offshoring American corporations lower labor costs, which destroys the American consumer market due to lower income received. When there wasn’t any growth in median family income and nothing else to drive the economy, the credit expansion was implemented which substituted the growth in consumer debt for the missing growth in consumer income. This is how the consumer demand growth was kept, which helped in keeping some growth in the economy. However, the debt reached its limit very quickly.
When the ability for people to borrow more money ran put as a result of acquiring more and more debt, the bubble broke. This is when the real estate market collapsed. The economy has not done anything to resolve this issue.
As a result of the increase in debt and the lack of economic growth, the US. dollar value has declined over time, especially during the 21st century. Due to the decline in the U.S. dollar value, it was seen that other countries pulled back from investing in U.S. treasury bonds.
Roberts talks candidly to Andy Mazzone about the “hubris and arrogance” in Washington, about powerful private interest groups that run the country,” about the effects of off-shoring and about the declining power of the United States and of the dollar.
Paul Craig Roberts analyzes the current trends in off-shoring led by CEO’s whose interest is “short-term” and fueled by the profit motive. “The argument is corporations are only responsible to the shareholders and bear no other responsibility. None to communities. None to the employees. And none to the customers.”