Narcissism, Consumerism and the End of Growth
The Cultural Contradictions of Capitalism now include narcissistic consumerism and definancialization.
Today I’m going to tie together the major themes I have been discussing in the context of Japan being the bellwether of economic stagnation and social recession. The basic idea is that Japan offers a limited but still insightful experiment in what happens to advanced consumer-driven economies as definancialization hollows out the economy.
What happens is that economic malaise leads to profound social recession that affects society, workplaces, families, individuals that then feeds back into the economic stagnation.
Definancialization is the process in which excessive speculation, debt, leverage reverse, crushing the economy with malinvestment and legacy debt while the crony-capitalist Central State attempts to stem the resulting deflation with massive, sustained Keynesian stimulus (fiscal deficits).