Despite constant assurances from officials that the economy is going just great, signs of trouble abound. To take a random sampling: it was just estimated that some 160,000 people are about to be evicted from their apartments in New York; defaults on junk bondswhich provide critical financing for many companiesare surging above 2021 and 2022 levels in response to rising interest rates; New York, San Francisco, Chicago, and other business centers are facing a likely collapse of the commercial real estate market, imperiling mortgage-holding regional banks while destroying local economies dependent on downtowns filled with office workers, many of whom are now working from home or recently fired; arcane indicators like the market for RVs, sensitive to downturns as an expensive discretionary purchase, are falling as before earlier recessions; while unemployment is rising significantly in over a dozen states. And thats just the United States.
We now have the first post-neoliberal administration in power in Washington. The Biden administration has explicitly disavowed all aspects of neoliberalism, including the assumptions about free trade and the alleged efficiency of outsourcing, the lack of support for trade unions, and the bipartisan contempt for industrial policy Biden managed to get through Congress the most expansive technology and industrial policies since World War II.2