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

This will be a comprehensive and connecting article. At least since 2006 we have mostly had a recession. I believe this in Sweden and many other countries is due to not investing in the public sector and creating jobs for everyone.

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

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

For decades, the Keynesian model has been replaced by a neoliberal one . The neoliberal one is about saving oneself from recessions, using crises to make the people accept welfare cuts and having high unemployment to make people accept any job, which leads to falling wages and worsening working conditions. In the USA, real wages have not risen in 30 years. Consumption was kept going with private loans. But in the end, the loans on the loans had to 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.