NYU Professor Nouriel Roubini deserves (and has received) a lot of credit for calling the housing bubble, predicting that it would pop, and foreseeing that the economic aftermath of these events would be an unusually deep and long global recession. But, if this summary of his most recent comments is correct, then he has been drinking too much of his own kool aid:
NYU Professor Nouriel Roubini has moved beyond predicting catastrophic economic downturns. Now, he’s saying that capitalism itself is threatened.
He also thinks the uprisings that have roiled countries from Asia to the Middle East to Europe will soon spread.
“Recent popular demonstrations, from the Middle East to Israel to the UK, and rising popular anger in China – and soon enough in other advanced economies and emerging markets – are all driven by the same issues and tensions: growing inequality, poverty, unemployment, and hopelessness… Even the world’s middle classes are feeling the squeeze of falling incomes and opportunities.”
Roubini went on to say that capitalism is undergoing a crisis that Karl Marx predicted a century ago, driven by an ongoing transfer of wealth and power from labor to capital (in other words, from poor and middle-class people to rich people.)
Things are certainly bad. But they’re not that bad.