Why is recovery taking so long—and who’s to blame?

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3. Keynesian explanation here...........

And of course Keynesian explanations we the ones that led to the stagflation of the 70s. Which led to the Reagan revolution and the neo-liberal era.

The answer is that the rate of profit has NOT been restored under capitalism which ties the hands of investors under capitalism, which leads to underinvestment in the real productive economy that provides jobs and encourages an accumulation of capital and a "capital strike". This fall in the rate of profit is now also affecting the mass of profits world-wide.

In short, if a capitalist has a choice in investment in his widget factory that pays 2% per year or a junk bond hedge fund that pays 4% per year, he's going with the hedge fund. EVERY. FUCKING. TIME. Especially if there is no consequences for the failure of a risky investment. If he's gets bailed out if things go catastrophically wrong, why worry about the risk? Go where the highest return is.

This is the internal logic of capitalism.