The Terrible Handling of the Economic Crisis Is a Cause of the Ferguson Riots

Bad Economic Policy Is Partly to Blame for Ferguson

We noted 3 years ago that the terrible handling of the economic crisis would lead to civil unrest and riots.

We noted that:

A study this month by economists Hans-Joachim Voth and Jacopo Ponticelli showsthat – from 1919 to the present – austerity leads to violence and instability:

Does fiscal consolidation lead to social unrest? From the end of the Weimar Republic in Germany in the 1930s to anti-government demonstrations in Greece in 2010-11, austerity has tended to go hand in hand with politically motivated violence and social instability. In this paper, we assemble cross-country evidence for the period 1919 to the present, and examine the extent to which societies become unstable after budget cuts. The results show a clear positive correlation between fiscal retrenchment and instability. We test if the relationship simply reflects economic downturns, and conclude that this is not the key factor. We also analyse interactions with various economic and political variables. While autocracies and democracies show a broadly similar responses to budget cuts, countries with more constraints on the executive are less likely to see unrest as a result of austerity measures.

As CNN notes:

Studying instances of austerity and unrest in Europe between 1919 to 2009, Ponticelli and Voth conclude that there is a “clear link between the magnitude of expenditure cutbacks and increases in social unrest. With every additional percentage point of GDP in spending cuts, the risk of unrest increases.”

“Expenditure cuts carry a significant risk of increasing the frequency of riots, anti-government demonstrations, general strikes, political assassinations, and attempts at revolutionary overthrow of the established order. While these are low probability events in normal years, they become much more common as austerity measures are implemented.”

The looting and chaos in Ferguson, Missouri is not justifiable … but it’s largely caused and inspired by the looting on Wall Street.

As basketball great Kareem Abdul-Jabbar notes, this isn’t a race war … it’s a class war.  And corrupt government policy is largely to blame.

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  • Don’t forget that the “serve and protect” dood gunned down a kid in order to serve and protect him.

  • Party Like 1999

    The offshore money grubbers in London and Switzerland (aka “globalists”) demand a gutting of the social and political infrastructure in America. They don’t like being hauled before or held to account by what they consider petty state and local government bodies in the US. The want total top down control from Washington in the US and the elimination of all governing bodies and authority below the federal level. The civil war being staged in America now is a means to this end.
    Obama, the Democrats and Republicans in Washington have engaged in such massive treason they will not risk being held to account by any local body they can’t control. If massive inflows of illegals and race war is what is needed to avoid jail or worse, they will support it.
    They will use what they view as a successful formula they currently employ around the world by their CIA flunkies. Masked rioters and agents provacuteurs. But make not mistake, this will be a federal war run out of the White House against ALL state, county and local authority.
    Even now, the White House is coordinating their “maidan” as pre-election destabilizations. Obama is a severe criminal make no mistake. His offshore bankster looters are even more vicious than the grilled saggy pants homey looting bottles of Hennesy.
    Obama and the DOJ (along with the rest of the federal and military covert agencies) will script their fake civil war to suit their personal financial and political needs.
    Based on his actions abroad, Obama will orchestrate the burning of every city in America. One way or the other. Provoking either domestic or foreign attack. He’s a wrecker.

    • Party Like 1999

      The overwhelming proof of my post will be how the destruction of electrical and water supplies by Obama will be used to force a domestic refugee crisis. A cascading collapse of social and economic systems is necessary to destroy their political opposition. Obama and the Democrats are dedicated now to a violent solution to their political weakness in areas they can’t gain control of. This straight out of the CIA playbook world-wide.

    • Party Like 1999

      Obama will use the NSA and other criminal means to isolate and immobilize each and every Republican governor, mayor and other elected official as they systematically knock-off everyone not on the pro-globalist Obama-Reid-Pelosi-McCain-Graham criminal treason team. They made short work of Walker, Christie and Perry did they not?

  • MCB

    I’m pretty certain that Abdul-Jabbar “borrowed” that quote from Nobel Laureate Poet Linton Kwesi Johnson. Either way, it’s spot on. Here’s a great 8 minute clip of an edited interview of Johnson where he talks about how the race fight is outmoded and it is class warfare that we are now embroiled.