Pushing the Economy

A Dream I had last night sighed the suggestion that I did not understand a modern economy. I thought to myself, "Well this is true! Thirty years ago I believed economic texts would bring me to Understanding of the modern economy. This long Period later, I fear I understand the modern economy much less Now, than when I had the energy of Youth."

Your Average Graduate Student holds much faith in the economic models developed by the Esteemed of the economic community. More travel-worn individuals, both highly Educated and Those less than Perfect, have witnessed the economic models fail too often at most inopportune times. We may still be True Believers, but even the old Standards carry a cynical tinge of propaganda for Us. We wonder why the Sure Cures always generate debilitating Problems for the Economy.

I have mentioned previously in my Writings that economies exhibit different Characteristics at alternate magnitudes: this means that the U.S. Economy of the 1950s did not function like the U.S. Economy of the 1970s simply because of its size. The current Economy does not even function according to the same Rules as did the Economy of the 1990s. Every level of magnitude for an Economy presents a new set of Stress factors, and Whole and Item variations to those Stresses. A lot of Economists and economic models gained fame in an Economy which is not what We have Today. Here is one of the reasons for economic model malfunction.

Another factor resides in the commitment of almost all economic models to economic growth. Every economy faces increasing resistence to expansion, this resistence growing under expanded previous performance; percentage increases of economic growth become disturbing hard to generate. Put in another way, New Goods not only have to face competition from other New Goods, but Consumer allegiance to Older Goods absorbing Consumption capital; New Services face the same reality, while in actual truth, almost all human needs have already been supplied. Consumers, in the final analysis, possess insufficient Time to utilize the current matrix of Goods and Services; they cannot provide another levels of attention to integrate large amounts of new Product.

The entire Scenario of the current Economy also troubles the contemplative mind. Most economic thought bases their Projections on greater Education and larger cadres of Skilled Labor to produce the economic growth. The fact remains We enjoy a shrinking Resource base (this is not a Claim of vanishing resources, but of increasing Extraction Costs), an ageing and shrinking labor force, an underemployment of the Skilled Labor already employed and employable, a lack of a sufficient Resource Recovery industry, and a basic lack of Basic Labor cadres. Marginal Tax rate reductions simply reduce tax revenues without major spur to economic performance; leaving an excessive Investment capitalization which drives up Resource pricing. There would be nil economic growth without the artificial Spurs of Inflation and Government Spending. Yes, I plead guilty to the Charge that I do not understand a modern economy, but maybe We could All wish for a little more Understanding. lgl