Here is a good response to Niall Ferguson’s second Reith Lecture. It appeared in the BBC Reith lecture comments here and I have posted it below:
At 26th Jun 2012, Alex wrote:
First of all Niall Ferguson does not mention that salaries in the US have not gone up since 1973 and that for the past decades Americans have been dependent on ever cheaper Chinese imports and on the rise of property prices which allowed them to remortgage their houses annually. In fact it is estimated that the remortgaging of their homes pumped in 4 trillion dollars annually into their economy. So when the property crash happened suddenly many of the American’s income were dramatically reduced.
Now take Germany in the nineties and the reunion, and see how Germany coped with this challenge. See how it managed to be an world economic leader with I believe has no deficit, but with a great welfare system. Look at Finland that was in dire straits in 1992 and today also has an excellent welfare system and a AAA credit rating. Sweden is the fastest growing economy in Europe. Now, each one can draw their own conclusions.
Countries usually grow out of debt, although cuts need be made, growth should always be the main objective, and the Tea Party folks never argue about fair pay, it seems they want the boss to get all the money because: “he/she is more developed according to Darwinian law , and therefore deserves so” All these Darwinian hypotheses smack of racism, classism and offer some a feeling of entitlement to be greedy and exploit people’s labour for very little.