Let’s talk about a couple of different things today. What’s going wrong and what we can do about it.
Those who read this column on a regular basis know that I believe we are near to the end of sustainability for our present economic structure; actually, well past sustainability and now past the artificial means that have been employed to cover up that fact.
Viewing America’s current record deficit spending from a different slant may help in visualizing the severity of our decline. To assist in doing so, let’s look at it with Mikeronomics.
Deficit spending puts money that was borrowed on credit into our economy; billions and billions of dollars. Some would say that it’s the war that has created the need for these record deficits and therefore the war is destroying our economy. That is not technically true.
Hundreds of thousands of Americans are actually employed as a direct result of our wars. I personally don’t support these wars, but the historical economics of supporting a war effort have always dictated higher employment and production. The current wars are no different.
So the real question is; Why isn’t the massive deficit spending creating the desired effect of raising our employment and living standards? Why have Americans lost jobs each and every month for the past seven months when deficit spending is at all time highs?
The answer in my opinion is that we have reached the mathematical zenith for the premise of exponential growth in both our physical and monetary systems. The study of our society applying macroeconomics bears this out. That being said, macroeconomics is a difficult subject to comprehend. I don’t expect everyone to grasp such a specialized study, much the same as I don’t personally understand brain surgery.
Even those of us who are emerged in this discipline on a daily basis, find the total understanding of the connectivity that each and every element of our economy and society has, to be a difficult undertaking. In other words, some days it gives me such a headache that I just go fishing.
That is why I do my best to produce living examples such as the one above to help all of us to understand the consequences of our current path. Not the Republican or Democratic path, but the path that attempts to maintain our accepted and expected American way of life.