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Submitted by Wail Fahmi Bedawi on
Financial Liberalization vs wage repression, despite growth in productivity, in the USA FOR MORE THAN thirty years. let us remember Keynes who advised us to minimize pronness to crisis, and that is by stating that: "any increase in the level of investment must met with increase in the marginal propensity to consume", and of course to reduce unemployment rates. if this principle had been respected poverty would had been reduced and crisis had been resisted by consumers, who now been encouraged to increase their consumption for resisting recession and retain investors' (lost) confidence. of course nobody would agree the repression to market natural forces, but yes for the financial, rather than wage-earners, sector as they are dealing with something that must be repressed, mainly the derivatives, despite being toxic or not, to minmize the risk of future crisis.