ECONOMIC UPDATE: Fake recovery - bank profits boom while poor get poorer

Ambrose Evans-Pritchard, of Britain’s right-wing newspaper The Telegraph consistently been one of the most pessimistic (or most realistic) of mainstream economic commentators and a favorite of UNITYblog. In the following column Evans-Pritchard considers the idea that it is the drop in workers’ spending power and the growing gap between rich and poor that is the fundamental cause of the current economic crisis. Following that, we link to two articles from USA newspaper Socialist Worker that argue that while Obama’s bailout has saved some banks, poor and middle income people are still getting poorer.

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