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The trouble with economics is that everything that is considered economically bad is also considered economically good -- and vice versa -- depending on your point of view.
When the fed started its "quantitative easing," economic logic said that the dollar should go down in value and inflation should take off on a massive scale. Didn't happen.
If globalization means that there is no more industry in advanced western countries, fewer services in advanced western countries, and no need even to grow food in advanced western countries, then what exactly are people supposed to do?
People do tend to forget about the other side of the balance sheet. One very major reason why National Debt is not a bad thing. These are some of our assets.
With QE many were not listening to the modern money specialists who understood all along why QE would never cause inflation. If you look back, those loudest 'economists' were selling you gold. QE is actually simple 'economic logic' if you sat down and took time to understand it.
IMO large quantities of blue collar jobs and manufacturing are never returning here. Those in those lagging industries need to do their best to adapt, via vocational or academic training, and/or move themselves to a more optimistic area.
IMO the only solution in the end will be a central one. The Brexit and Trump will only try and shift the economy to try and favor those lagging and failing today. Tomorrow it will be a different set of losers. And a different set of elites.
IMO the answer will have to come centrally.
Reduce middle class wages.
Increase necessary benefits like HC.
Massive infrastructure projects.
Central grants to states.
A centrally created and supported jobs of last resort program where every state and community will have the ability to offer what ever needed local jobs they desire and are not being filled/done. This will solve the minimum wage issue if you believe in such a thing. And it will help solve our general welfare problems.
People do tend to forget about the other side of the balance sheet. One very major reason why National Debt is not a bad thing. These are some of our assets.
With QE many were not listening to the modern money specialists who understood all along why QE would never cause inflation. If you look back, those loudest 'economists' were selling you gold. QE is actually simple 'economic logic' if you sat down and took time to understand it.
Ask the people as they leave the grocery store if they believe there is no inflation.
If prices go up 15% but you lose 15% worth of value in your home the government says things are great while both are actually negative things. No, it's not that simple but yet it is.
Ask the people as they leave the grocery store if they believe there is no inflation.
If prices go up 15% but you lose 15% worth of value in your home the government says things are great while both are actually negative things. No, it's not that simple but yet it is.
I do, I did, there is. Shop for sales and you can counter a bunch of it.
But QE had little to nothing to do with it. Although low interest tend to push inflation (part of its intent).
Asset inflation yes, groceries more of a typical local supply/demand scenario.
If globalization means that there is no more industry in advanced western countries, fewer services in advanced western countries, and no need even to grow food in advanced western countries, then what exactly are people supposed to do?
We can't all be professionals and engineers.
This is why we might decide to redefine what "work" is.
We aren't the only country hitting this problem. It's happening in other countries too. There just aren't enough jobs for people to do and everywhere you look around, companies are trying to get rid of the human components to production.
Now that banks are trying to eliminate tellers and grocery store are getting rid of checkout clerks, did you realize that fast food restaurants are trying to reduce the number of people they employ?
Look at self-driving cars. Eventually they hope that that technology will replace truck drivers which will remove millions of jobs from the economy. The same technology will probably eliminate taxi drivers and bus drivers too.
New Technology and the End of Jobs (This article talks about replacing farmers with robots, which is already happening. Also, replacing factory workers, etc. Has lots of information.)
Ultimately, globalization doesn't matter. Technology is what is really transforming our economies.
IMO the only solution in the end will be a central one. The Brexit and Trump will only try and shift the economy to try and favor those lagging and failing today. Tomorrow it will be a different set of losers. And a different set of elites.
This reminds me of Rick Scott (Florida) and Rick Perry (Texas) trying to steal jobs from California. They couldn't create their own. They had to spend time trying to lure companies away from another state.
It didn't really matter though, because, in the end, California just keeps creating new and different jobs.
I guess the central question is: "How do you generate enough wealth to pay people not to work?"
That seems to be where we are going.
This is why Trump is crazy with the "We're going to reopen the coal mines! We'll reopen the factories!" Unless he is personally planning to buy these things and open them, no we aren't. Those jobs are just gone.
Hillary is closer to the truth with the retraining idea -- but retraining to do what? We might do a little better if we had more creative thinking classes.
This is why Trump is crazy with the "We're going to reopen the coal mines! We'll reopen the factories!" Unless he is personally planning to buy these things and open them, no we aren't. Those jobs are just gone.
Hillary is closer to the truth with the retraining idea -- but retraining to do what? We might do a little better if we had more creative thinking classes.
That all sounds very nice, but wealth is only created through investment and production of things that people need or want.
Production means people working.
And even if it doesn't mean people working (with robots, illegals or foreigners doing the jobs instead), those non-working people still have to live on something.
I have yet to hear of proposal to pay people well for doing nothing.
Yes, people can buy and sell stuff on the internet, or create another Facebook, but there is only so far you can go with that.
Last edited by dechatelet; 07-03-2016 at 04:32 AM..
Supply and demand is always the excuse the markets use. It was used when oil went to near $150 but the fundamentals are hardly any different now with it hovering around $50.
I guess the central question is: "How do you generate enough wealth to pay people not to work?"
That seems to be where we are going.
If robots can produce and service most of the basic needs of the people, it can be done if you have the resources. It helps to be monetarily sovereign so that creating money is less a problem, but if not your robots just need to work overtime and create exports for sale.
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