Bubbles, Busts and Crashes – Why Our Economic System is Financially Unsustainable
The lecture shows how our existing economic system necessarily triggers rising rent payments, thus creating rising inequality of wealth and income. The increasing money flows are used by the rich to invest in all kinds of fixed assets. But mass incomes lag behind. So overcapacities are created, a debt-financed wedge is formed between supply and demand: a bubble is created and an inevitable bust follows. This is where the world economy now is heading for: Sooner or later we will see a very deep recession if not worse. We could avoid a coming depression by quite simple political measures: by reducing the inequality that has built up during the last 40 years. But not only political measures are necessary. Each of us can do something to improve and heal not only our economic, but our social life. If we want to change the world we have to change our behavior, change ourselves.