Crises of stupidity – the recession in Sweden and the world in 2012

This will be an overall and connecting article. In any case, since 2006 we have mostly had a recession. I believe this in Sweden and many other countries is due to the fact that not investing in the public sector and creates jobs for everyone.

The private companies have been undergoing a constant for decades streamlining, automation and globalization (relocation of mainly blue-collar jobs to low-wage countries). This creates, in the short term, greater profits for the capitalists. But when people cannot afford consuming because they lack wages from jobs to trade with still reduces profits. Then my solution is Keynesianism in recession combined with expanding the public sector permanently to replace the cuts that are constantly ongoing. The flow of money must be kept circulating in the entire body of society in order for the consumption of goods and services to continue.

Then the central banks of all nations must be nationalized, such as those of the United States and Great Britain. The state will get rich by printing money, not any individual capitalist. In Sweden, the Riksbank owns itself. So the Riksbank becomes rich, but the state poor, when the Riksbank prints more money. The state should not have to go into debt to print money.

Since decades, the Keynesian model has been replaced by a neoliberal. The neoliberal is about bailing out of recessions, using crises to get people to accept welfare cuts, and having high unemployment to get people to accept any jobs, leading to falling wages and worsening working conditions. In the US, real wages have not risen in 30 years. Consumption was kept going with private loans. But eventually the loans on the loans would be repaid.

Then came the oil crisis, which meant that low-income Americans could not afford to go to work. Then the entire American credit card house collapsed.

This probably led to the Arab Spring. These spontaneous Arab uprisings arose when those who had long been abjectly poor could no longer even afford food for the day.

At the same time, we have crises throughout Southern Europe. If the EU does not help them with grants and not loans (which they cannot afford to pay back), then our Swedish exports will suffer and then perhaps drastic cuts in Swedish welfare will be required.

So deep at the bottom of all these crises lie two major crises that are caused by stupidity:

• the oil crisis= we have known that it is coming to an end since the 70-80s. Nevertheless, too little public money has been invested in a new alternative energy source and the capitalists have invested a lot of money in buying up alternative ideas for energy sources and shutting them down. We now have to pay for this with the fact that the oil that drove large parts of the 1900th century's economic boom is now becoming too expensive to keep consumption and production going when it runs out.
• neoliberalism crisis: constant austerity in recessions leads to longer-lasting crises. a cut public sector with few resources cannot sufficiently maintain employment and purchasing power among the general public. This leads to frequent recessions.