Like, the profits can’t keep coming if production doesn’t keep coming. Can the government just borrow against future production and keep the ball rolling indefinitely, or is it going to come crashing down very soon?
Econ nerd pls help, my humanities degree did not prepare me to answer these questions.
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Michael Roberts has been writing a lot on COVID effect on capitalism.
https://thenextrecession.wordpress.com/2021/01/25/covid-and-fictitious-capital/
https://thenextrecession.wordpress.com/2021/02/14/deflation-inflation-or-stagflation/
Some economists keep predicting (read: coping) by claiming something like a v-shaped recovery. In practice, any “recovery” is going to be to a lower level than it was before COVID. There has been massive increase in corporate debt, and growth was already at low levels prior to COVID. Much of the money from stimmy has gone to speculation and stock buybacks. The market has already been going through a massive crash for all intents and purposes. The economy was already fairly stagnant post recession. It will be even worse going forward.
