Michael Hudson on non-competitive labor and financialization

In MY theory, the reason for non-competitive labor is that 75% of its budget is financialized. There is no way in which an economy with such a high monthly break-even “nut” can compete with less financialized ones.
            Rent or home ownership costs:                                                35 to 40%            FICA wage withholding (Social Security and Medicare):                15%            Other debt service (credit cards, student loans, etc.):                10%            Other taxes (income and sales taxes):                                    10 to 15%
            TOTAL:                                                                            75%             Only about a quarter of family budgets remains available for spending on current output. This is how financialization leads to debt deflation, even while prices rise as a result of higher banking and other economic rent charges that have no “real” cost basis.
    So in order to AVOID dealing with the debt issue and writing down debts, neoliberals want to depreciate the currency.    But this would work only if they write down debts. Leaving the debts in place still won’t create equilibrium.

Michael Hudson in email at gang of 8 yahoo group