This post from November 2015 is becoming more important as the federal deficit ratchets up and private credit is turning back up. I am leaving in the references to Sanders and progressive counters because they may well be current again.
If you’re like most people, you probably think that you can never have too much access to credit. After all, you never know what might go horribly wrong or when an opportunity to really follow your dream might come up. A little scratch ready in the background might be the difference between the good life and something much less.
Then again, a lot of credit has a corrosive effect. In a world saturated with borrowing everything is judged against the expected return if the money was simply loaned out at market rates. It seems reasonable that where a little credit is a good thing a lot of credit, defining everything in the world, is the biggest enemy of both long-term thinking and a society looking to maximize happiness and human potential.
Logic says that where a little credit is good a lot could be bad, meaning there is an optimal point. Where is that? Where are we with respect to a good level of credit? It turns out that train left the station a very long time ago – and this may explain a lot of the problems in this economy.
The United States is typically a very self-absorbed nation. As the largest economy in the world, and separated by two oceans, US based news and the opinions it shapes have always been centered on domestic concerns projected out into the world. This has only been exacerbated by the a pathologically self-absorbed president.
Because of this problem, the simple fact that the world is fleeing away has escaped many Americans. What has been a growing practical reality as the US share of the world economy slips is becoming a necessity thanks to severe foreign policy mistakes, all of which cater to a domestic audience. “All politics is local” remains true, even though it clearly should not be.
The two biggest foreign policy areas, a trade war with China and sanctions against Iran, appear to be two different situations with the US at the center of both. They are not, and increasingly will become less and less about the US. This simple fact is going right past us, too – making our policies even more ridiculous and harmful to our own interests.
Now that no one buys our votes, the public has long since cast off its cares; the people that once bestowed commands, consulships, legions and all else, now meddles no more and longs eagerly for just two things – bread and circuses!
– Juvenal, Satire X, “Wrong Desire is the Source of Suffering”
The “Fall of Rome” trope has always been an easy one to dismiss. After all, we’re stronger and more connected than they ever were, yes? The public is more literate, our history is stronger, and times are simply different than they were back so very long ago.
“Conventional Wisdom” isn’t.
Everyday life is the process of understanding and using key facts about the world around us. The sky is blue, red means stop, the 94 bus leaves at 7:53, and coffee will wake you up. Most of the important things in life are obvious enough, based on immediate observation or past experiences strung together.
However, the presence of technology and a growing interconnectedness impinges critical “facts” onto our lives which reach far beyond our senses and sensibilities. Cell phones work because they just work, this thing called “money” in our bank account is extremely important, people who live in distant lands are motivated by something akin to demonic possession, et cetera.
This is where it all breaks down. Or, more importantly, where things breaking down accelerates as reason itself fails.
The process of the world coming together has been irregular at best. It seems reasonable that through it all there would be winners and losers, as we have seen. What is remarkable is how globalism, as a concept and a reality, has divided the developed world. Working people with less access not only feel left behind, in many cases their standard of living is actually slipping.
It seems as though there is a fundamental flaw in globalism. Yet the flaw may be in how we approach not just globalism, but the forces which created it in the first place. What if the process of the world coming together, driven by market forces, is fatally flawed because of our inadequate understanding of marketism?
In short, what if the transition from an industrial world to a market based world is not as seamless as we want to believe?
This piece from ten years ago reflects what I have organized my entire life around for 22 years – my children.
When a child first opens its eyes, it has no idea what it is looking at. All it has are bizarre images and an imagination that works to make sense of it all.
In between is a sense of wonder, the deep feeling that it all makes sense somehow if you just keep drinking it in. That, and keep playing with it.
The United States has withdrawn from the Iran nuclear deal. It is probably the stupidest possible thing to do at this time. Why? Here are eight reasons, most of which are fairly conservative in nature.