The Pandemic Will Cause A Global Depression

March 16, 2020
The Pandemic Will Cause A Global Depression – We Need Demand Side Measures To Counter It
Last week’s post on Boeing ended with this line:

The pandemic, and the global depression it will cause, now make it certain that Boeing will have to ask for a gigantic government bailout or go into bankruptcy.
With most flights grounded due to the pandemic Boeing is now thinking about cutting its production and laying off workers.

In the quoted sentence I used the words „the global depression it will cause“ with care. I do indeed believe that a sustained, long-term downturn in economic activity in many countries will be one of the results of this pandemic. (…)


Must read – Michael HUDSON: The Financial Attack on Greece: Where Do We Go From Here?; CounterPunch, July 8, 2015

The Financial Attack on Greece: Where Do We Go
From Here?
July 8, 2015
The major financial problem tearing economies apart over the past century has
stemmed more from official inter-governmental debt than with private-sector debt.
That is why the global economy today faces a similar breakdown to the Depression
years of 1929-31, when it became apparent that the volume of official inter-
government debts could not be paid. The Versailles Treaty had imposed impossibly
high reparations demands on Germany, and the United States imposed equally
destructive requirements on the Allies to use their reparations receipts to pay back
World War I arms debts to the U.S. Government. (…)


Peripheral debts: Causes, consequences and solutions:
2 July 2015

Event date: 02 Jul 15 –

The amount of public and external debts from EU peripheral countries is amongst the biggest debts in the world.

(GUE/NGL – this abbreviation stands for Confederal Group of the European United Left/Nordic Green Left)