. As Barataria has discussed before, business cycles are not only real but heavily define the world in social and technical development terms. These cycles are, in purely economic terms, changes in availability and attitudes towards debt.
It is more than a little chilling to think that progress naturally comes in waves because of something as mundane as debt. But a system defined by money supply which has features that are destabilizing and work against sustainability and resilience is a large part of what we might call “capitalism.” The equilibrium of markets is pushed and pulled by the availability of capital.
One important feature of Fourth Wave Industrialization has to be that these cycles will need to be broken and greater monetary stability has to be achieved for a truly open market. This is likely to mean that equity will have to be favored over debt. But what, really, is the difference?
The announcement has rolled through Wisconsin. $3 billion in aid will land a total of 13,00 jobs somewhere around Kenosha. Or maybe less. Or maybe it won’t happen at all, like past promises. But it’s a great deal, one that will create jobs.
It’s hard to say exactly what the Taiwanese electronics manufacturer is going to do given how quickly the breathless announcement came out. What matters is that it had to be announced because it’s not actually about jobs or anything tangible. All of this is just a very expensive form of political theater, allbeit with stakes lower than last week’s show. Government is here to fix the economy and provide jobs, right? So here ya go.
Like many sequels dished up by Hollywood this is a must-see summer thriller. It’s following a well established formula that everyone loves. And like those movies, it begs the question – where did this come from?
Are you properly compensated for your work? As we discussed previously, between 1947 and 1973 worker’s salaries accounted for half of Gross Domestic Product (GDP). There was a solid if unspoken agreement that labor and capital split the spoils of the free market equally between them.
But what of output per worker? Is it possible that workers are slacking off and don’t deserve the same arrangement they had in the immediate Post WWII era? An analysis of productivity, or output per worker, shows some interesting trends that may point to more unspoken agreements that the various markets for capital and labor expect. These trends follow business cycles, and as such point to some important changes that are necessary as we move ahead into the next cycle in the next few years.
Are you better off now than you were so many years ago? It was a question first raised in the 1980 campaign, a motto used to defeat President Carter. The answer then was a rather sure “No!” and the voters responded, blaming the man in charge. But are you better off now than then? And was it fair to blame Carter or any President for the state of the economy?
A few graphs showing the state of workers in the Postwar Era (1947-today) shows how the problem persists. Sen Sanders has often said that the last 40 years have been a slow retreat for workers, and he has a point. But who is to blame?
Let’s leave blame aside for a moment and check out the numbers first.
“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”
– Franklin Delano Roosevelt
One of the key features of the time we live in is paralysis. Uncertainty creates risk aversion, since risk is much more difficult to calculate. After a few years living like this and people start to live day to day. It eventually becomes “survival mode” when tomorrow becomes very difficult to imagine. The result is nothing – and that often comes even when one person is calling the shots, let alone a system based on consensus among many.
The evidence is all around us that something unusual is happening. Change is coming faster and in ways that are not often talked about adequately. The economy is not simply recovering the way it has after any other post-war recession. What should we do? FDR had it right – try something and see if it works. If that goes against every instinct you have right now, you’re not alone. But let’s see if we can convince you that there are, in fact, some things that point to very different actions than we’re all used to.