NEOLIBERAL ECONOMICS IN DEATH THROES: Slog vindicated as research shows US consumers ‘too poor to shop’

mesnipThe headline above would apply equally well to British, French, Dutch, Italian, Spanish, Portuguese and Greek citizens. Only monetary ideologist fanatics like Schäuble, Draghi, Abe and the fortunately former UK Chancellor George Osborne think that financialised bourse ‘profits’ can give the majority a life of decency and fulfilment.

The data news

  • The Wall Street estimates consensus for Q2 profits of the S&P 500 is a 5.6% fall (YOY). That is, the fifth quarter in a row of falling corporate profits. This is because…
  • US retail sales fell 4%, deepening a 3% drop in April.
  • More than 20% of Americans, can’t afford to shop, according to major US research group ARG
  • 50% of Americans haven’t had a salary raise in five years.
  • 47% of Americans couldn’t afford $400 for a gp’s visit without borrowing to pay the fee.

Why the data are old news

It would be ludicrous to describe this development as “unexpected”. Even here at the lowly Slog, the doom was predicted long ago. In November 2013, I wrote this:


In short, don’t ask people to consume more if they earn less. In May 2015, my contention was even more blunt:


In February this year, I summarised a long history of warnings:


It’s serial madness, but that observation doesn’t help UK SPA pension victims out of their black hole of destitution.

What we need to do to stop the insanity

  • Get Governments that work for us – the people whose taxes fund their madcap ideas – by taking four simple steps
  • Join in with the general movement towards devolution of power down to city, town and then community level.
  • Reject all outdated and disproven ideologies in favour of new ideas: globalist neoliberalism and socialism hava a track record of failure, whereas mutualism had an unblemished reputation until Thatcher’s Big Bang replaced its Benthamite philanthropy with Beelzebub greed.

This has been a brief post….but, I hope, to the point. As S J Perelman once wrote in a letter, “I apologise  for the length of this missive. If I’d had more time, it would’ve been much shorter”.

Earlier at The Slog: Pernicious propaganda behind the Fireman Sam farce

16 thoughts on “NEOLIBERAL ECONOMICS IN DEATH THROES: Slog vindicated as research shows US consumers ‘too poor to shop’

  1. John,
    Perhaps some of the blame lies with ourselves.

    “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over a loss of fiscal responsibility, always followed by a dictatorship. The average of the world’s great civilizations before they decline has been 200 years. These nations have progressed in this sequence: From bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to complacency; from complacency to apathy; from apathy to dependency; from dependency back again to bondage.”

    Read more:

    Liked by 1 person

  2. This is so true. Apple stock went UP today after they revealed that they are selling less than last year. The expectations of the annalists were exceeded so the stock went up. This is crazy so I’m selling. The US stock market is one giant bubble that does not reflect the underlining numbers. US auto sales are declining as well. I’m on a flight to London tomorrow to get a close up look at your economy.


  3. One slight problem, John.
    Our taxes do not fund the politicians madcap ideas, they only go toward paying some of the interest on the national debt.

    Fractional reserve banking means that money is printed out of thin air to pay for the politicians madcap ideas, such as bombing Syria, without the need to raise taxes. The hidden tax called inflation robs us serfs of the value of our wages & savings, which is how the Banksters both stay in control & push us further toward our feudal future.

    Since the 1913 inception of the Fed, so much money has been printed that the $ is now worth less than approx 4 cents of its then value.

    Book: The Creature from Jekyll Island, by G. Edward Griffin.

    John Doran.


  4. You are correct John. Only Solar energy will save the world. Marvellous insight from you again.
    Thank you a thousanth time.


  5. The key assumption in your argument denigrating others is that they want the people to get better off, but are too hidebound by their ideology to let it happen.

    If you are a cynic and think that our ‘Leaders’ subscribe to the New World Order doctrine enunciated so chillingly by a Rockefeller DNA sample a generation ago, then you would assume that, far from wanting the bottom 90% to get better off, what they actually want to do is to make their lives so pointless and full of misery that they become infertile, disinterested in raising children and simply disappear from the face of the earth within 50 years. Maybe 200 years will get rid of the lot of them.

    So all the NWO have to do to reduce the population to 1 billion is to invest in robotics to remove all employment opportunities for the ‘subspecies’ and focus solely on whether the economy is growing for ‘those who will be saved’ to quote the 2000 year old scribblings which these people see as a useful source of philosophy from time to time.

    See it as an economic ‘final solution’: gas chambers were too crude, it actually involved humans physically transporting people to their deaths. This is much more in the realms of ‘plausible deniability’: ‘it’s just the way the economics have turned out….’.

    if this doesn’t work, try a few ‘diseases’. They’ve not really tried any proper ones yet: the ones they used were just to create a bit of fear and hysteria. Now if they actually found a disease which targeted the black genetic make up, god help the world, because they would use it……

    The whole point of the ‘global warming’ hysteria is to ensure that asset prices where the NWO currently live are very high, allowing them to buy cheap into places which will be more salubrious come the next ‘Maunder Minimum’.

    These people aren’t a ranting a raving Hitler. They are cold, calculating, computer-modelling, 21st century racists, eugenicists, call them what you will.

    They know what they are doing, all the way from setting up Gladio operations around the globe, promoting and funding wars and brainwashing entire generations.

    You won’t beat them targeting their wealth: they hold all the cards there.

    The only way you will beat them is to target their fertility…….

    Liked by 1 person

  6. Part of the problem is if your life consists of riding round town in the black merc with smoked glass windows you never see how much the consumer’s are suffering, and if you are a psychopath in the Mr & Mrs Green mode you don’t care and if you are not suffering then you never notice the beggars on the street. It has ever been the same, greed puts out the eyes of many people.

    Liked by 2 people

  7. Western Caucasian populations are being decimated by high unemployment rates and poverty. It is difficult to raise a family when you can not afford the overheads of rent, food, clothing and utilities.
    Modern society requires the mother and father to have full time jobs to support a decent lifestyle.
    If starting a family is considered, the costs of childcare are prohibitive.Consequently most couples will have a reduced number of children.
    They say the optimum to maintain the population is 2.4 children.
    Neo -liberal economics may be the most efficient birth control system to be devised to date. Long term it means the European population being displaced on its own continent.
    Of course it is not politically correct to raise the issue.

    Liked by 1 person

  8. Router AI

    and if you’ve never seen anything but the perfumed world of Eton, Oxbridge and Cowes yachts, how can one even be aware of how the poor live?

    When everything you’ve ever been taught tells you that the poor are to blame for their own lack of greed or ambition, the square is fully circled. Any attempt to bring them to awareness will be fobbed off with explanations of this kind.

    After all, if it’s all they know, there is no other way to live.

    That is their challenge – and as mentioned, will be fobbed off. Or you’ll be treated as a troll with them acting as the very thing they accuse you of being!


  9. The trip from sovereign citizen to serf takes very little time these days, but for most it is an unrecognized transition due to the cleverly crafted modern versions of bread and circuses.
    Our former leader camoron stated that if we do not subscribe to the party dictates then we are terrorists.
    Common Purpose is to create group think- notice how pathetically docile modern students are.
    Modern education exists to produce docile unthinking little cogs that will all mesh perfectly in the big machine.
    Blogs like this are tolerated as a safety valve. However, should the audience become too large it will be closed.(The fate of the internationally recognized expert Dr Kelly springs to mind)

    We are being herded like little lambs to meet our destiny with the mint sauce.

    Liked by 1 person

  10. Anonymous, if you are British, you were never a citizen, sovereign or not. You were a subject of the crown.

    We weren’t born citizens, we were born as lambs – and were starved so painfully that we never grew into sheep.

    As to the mint sauce, it’s all the flavour you’ll get from meat like that!


  11. JW

    You gotta love it … what will be the spin on the current overinflated price of bubble stocks to near zero returns. In my mind that is the stagnation they cannot now avoid when in 2008, mark-to-mark of all values would have prevented it. In addition trying to hold up property prices that were being used as a wealth creator of the masses giving the illusion of wealth that you could spend the accrued equity into the future, hence no crash is ever allowed.

    Both those mechanisms are BOE supported and desired, ramping up shed loads of debt in the process that can never be repayed and they carry out their intentions with due diligence destroying any that are not favourably positioned.

    I guess Darwin’s theory of natural selection no longer applies to humans.


  12. Most of the West now has the same problems.

    This didn’t happen by accident and it comes from the world standardising on a flawed economics that gives all the wrong answers, neoclassical economics.

    It thought that raw capitalism reaches stable equilibriums that benefit the majority, it obviously couldn’t be more wrong.

    It thought that markets reach stable equilibriums based on the individual actions of rational investors. The boom, the Chinese stock market and housing bubbles around the world show us that investors are not always rational. Markets have two modes of operation:

    1) Price discovery of rational investors
    2) Bigger fool mode when everyone rides the bubble for capital gains

    The most fundamental of all fundamentals is also wrong, the very nature of money itself. This hides the danger of banks lending into asset bubbles that is a huge problem:

    “Minsky Moments”

    1929 – US (margin lending into US stocks)
    1989 – Japan, UK (real estate)
    1999 – US (margin lending into US stocks)
    2008 – US (real estate bubble leveraged up with derivatives for global contagion)
    2010 – Ireland (real estate)
    2012 – Spain (real estate)

    Coming soon – Australia, Canada, Holland, Sweden, Hong Kong (real estate)

    We imagine that knowledge builds over time but neoclassical economics superseded classical economics whilst missing one it’s most important distinctions, the difference between “earned” income and “unearned” income.

    It is hardly surprising everyone has gone for rent seeking “unearned” income, this is the income you get from doing nothing, it’s the easy money.

    BTL, extracting the “earned” income of generation rent as “unearned” income for yourself.

    Economics needs to be rebuilt from the bottom up, starting with the foundations of Classical Economics.

    Liked by 1 person

  13. the idea of ‘debt’ as money is a ponzi scheme .. now they have included everyone in the western world in it they need to find new mugs to stop it all ending.. look out Russia and China.. goldman et al are looking for new meat to suck dry so expect to be attacked one way or another..


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