Authored by Valentin Schmid via The Epoch Times,
Macquarie strategist Viktor Shvets explains overcapacity, debt, and government intervention
Despite the temporary injection of confidence in the American economy brought about by the election of President Donald Trump, major structural problems continue to lurk beneath the surface. These trends, decades in the making, are so entrenched and intractable that even Trump’s boldest plans may not be able to resolve them.
For many Americans, this is the economy: rising prices for necessities, schooling, and health care; high competition for jobs that don’t pay much; negative interest rates; and the accumulation of increasing influence and power by financial institutions.
It’s no wonder so many feel disenfranchised and upset. The system of capitalism is usually given the blame for income inequality; last year, many identified with Bernie Sanders, a self-described socialist who promised that the government would be able to fix (almost) everything.
This post was published at Zero Hedge on Apr 4, 2017.
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