During the 1970’s and 1980’s governments and people generally in the more perfluent nations were waiting for an economic “upturn” or “recovery” to reduce what had become chronic high unemployment. The underlying assumption was that the high throughput-increase rates, the so-called “economic growth” rates of the 1950’s and 1960’s, were normal and that the more sluggish throughput-increase (TI) rates of latter years were an abnormal phenomenon that could be expected to speed up in time through this or that brilliant policy initiative or going back to the early economics of the eighteenth and nineteenth centuries; or by eliminating (depending on your point of view) businessmen, unions, migrants, taxes, civil servants, or computers; or just by waiting. ... Read more
Another misleading idea used to be that capitalism and communism represented opposite extremes, opposite poles of economic theory and practice.
Proponents of communism used to believe, inter alia, that if only the world were communist there would be no more environmental degradation, no more pollution, no more problems in that area. ... Read more
It is possible for some time to consume a resource faster than its renewal rate, just as a business can for some time consume its accumulated money capital faster than it takes money in (this is only an illustration and does not confuse money with wealth). ... Read more
Current economics assumes a world of unlimited resources, unlimited wealth. No matter how rapidly a resource is used, either (i) “They” will always find more, or (ii) substitute resources will always be found to serve to any required extent as well or better in place of the depleted resource. ... Read more
An answer must be found to the problems of aging populations in more perfluent countries.
It has been suggested that efforts should be made to achieve and sustain a higher birthrate in the more perfluent countries, to lower the median age and create more taxable workers and more throughput to support ever rising pension demands. ... Read more
It has not been the aim of these posts to provide detailed remedies for every current problem in or related to economics.
It has only been my purpose to outline a more practical and realistic relationship between the human economy and the world we live in, one which favours life over death, progress and enhancement over degeneration. ... Read more
Merely transferring money into the wages channel, increasing the spending power of consumers without forcing them to borrow, is of course not enough; the spending power must be translated into effective demand, with increased spending and consumption actually taking place – the more the better. ... Read more
In the Great Depression, and in the stagflationary predicament of the 1970’s and 80’s which threatens to recur as a result of the US credit crisis and the run-up in the cost of resources and food, the work could have been available to employ everyone if the money had been available to pay them. ... Read more
Misnamed “Keynesian” deficit financing policies applied in more recent years to “recessions” have contributed more and more to inflation and less and less to alleviating unemployment.
These policies have come to exacerbate the very disease, unemployment, they were meant to remedy. ... Read more
The statements in this post apply particularly to the economic predicament of the 1970’s and 80’s, which may recur under the pressure of modern problems. They do not necessarily hold true for every form of economic malaise; for instance, they would have been inaccurate for the Great Depression of the 1930’s. ... Read more