The ultimate purpose of all this is to preserve capitalism and the wealth and power of its elites. And so far the baulouts and their aftermath have decidely served that end.
As a columnist with the
Times of London observes, "The rich have come through with the recession with flying colours... The rest of the country is going to face spending cuts, but it has little effect on the rich because they don't consume public services."
The candidness of this statement is appreciated. But there is one error in this passage. These cuts do in fact have an effect on the rich: they help them.
After all, they are essential to the massive transfer of wealth from the poor to the rich that funded the rescue of the world banking system, the bailout of corporations, and the salvage of the investment portfolios of the wealthy.
So, when one US economist observes that we have today "a statistical recovery and a human recession" we need to add, as one California teacher put it to me, that there is a statistical recovery because there is a human recesssion.