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It's Your Future; DO SOMETHING!

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Good Morning Middle America, your King of Simple News is on the air.

 

I’m going to break out that old saw of growth again today for those who may have forgotten what the real problem is.

 

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The U.S. economy and your paycheck are based on this outfit growing every year in relation to what it grew last year. The term for this type of growth is “exponential” or ever expanding. In a world that stays the same size (finite), the other word for our growth model is, “impossible.”

 

In my live lectures I use the following example in order to paint a visual picture:

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A small town is founded on the banks of a large lake. There is a stream feeding the lake that averages 100 gallons per minute of water flowing in. On the other end of the lake, a stream flows out and the trees and critters down stream benefit from that outflow.

 

The new town buys a pump that displaces 50 gallons per minute to feed the needs of the now growing community. The outflow stream slows, but continues to flow and little negative effect is noticed.

 

The new town proves a popular place and follows the U.S. model for growth. Stores and subdivisions pop up, lawns are watered and cars are washed. A second 50 gallon per minute pump is purchased to meet growing demand.

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The outflow stream stops flowing. The trees, plants and aquaculture downstream die, but…the lake remains full. The town is thriving and the builders and store keepers are making handsome profits, the American Dream is materializing on every new street. The dead trees downstream are cut for lumber and everything in nature is balanced.

 

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Mike Folkerth is the author of "The Biggest Lie Ever Believed" and is not your run-of-the-mill author of finance and economics. The former real estate broker, developer, private real estate fund manager, auctioneer, Alaskan bush pilot, (more...)
 

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