View Single Post
Old 01-04-2015, 05:13 AM
Danny B Danny B is online now
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,898
Wealth, efficiency and free time

Besides the Austrian School, there is the Monetarist School. They have ideas of their own. Japan is still crashing and looking for a "plan j" or whatever letter They are up to.
"Economist Milton Friedman first conjured up the enticing image of bank notes dropping from the skies in 1969. Thirty years later, Ben Bernanke proposed a helicopter drop of cash as an antidote for Japanís anaemic demand and falling prices."
"The mechanics would be relatively straightforward. Assume each of Japanís 52 million households received a debit card with, say, 200,000 yen ($1,700) loaded onto it by the central bank. Any remaining balance on the cards would disappear after a year, ensuring that recipients spent the windfall. The move would inject an extra 10 trillion yen, or 2 percent of GDP, of private purchasing power into the economy. This in turn would encourage companies to invest and pay higher wages."
UH,, sounds real good but, they are not going to pay higher wages.
The CFR proposed the same thing here. Just send everybody a boatload of cash.
The high-wage West crashed into the low-wage East. Capital followed the wage market after global wage arbitrage sent the jobs to low wage States. That isn't the only problem. TOO many people are having to compete with computers, robots and automation. The result; "Roubini;
"Even that may not be sufficient, in which case it will become necessary to provide permanent income support to those whose jobs are displaced by software and machines."
Where Will All the Workers Go? by Nouriel Roubini - Project Syndicate
There just isn't enough appreciation for the ever-increasing job loss to automation. It will suddenly become a BIG problem when the politicians and lawyers lose their jobs.

The main problems are 2. 1. capitalism is "programmed" to send it's rewards to those directly involved in productivity and service. Those not involved get a pittance. 2. people without jobs tend to lose their center of their lives.
Keynes proposed that we will lose this "affliction" and learn to have a meaningful life even if we aren't employed. Keynes also extrapolated that the growth of wealth would make work unnecessary in the future. He guessed that we would have to suffer another century of the present system until wealth grew so large that there would be no reason to work.

Shumpter came up with the idea of creative destruction where we would constantly create and destroy wealth to keep everyone employed. The U.S. military seems to follow that advice. U.S. GOV spends about 44% of the GDP building planes that don't fly well and wars that accomplish nothing but to enrich the offence industry.
We build to destroy because there is no remedy for efficiency. We have 22 billion slaves working for us. WHAT are we going to do to stay occupied?
22 Billion Energy Slaves

We may soon get to find out what the effects of generalized unemployment are.
"The UK stock market is in its 70th month of a bull market, which began in March 2009. There are only two other occasions in history when the market has risen for longer. One is the period leading up to the great crash in 1929 and the other before the bursting of the dotcom bubble in the early 2000s. "
"In the US, Professor Robert Shillerís cyclically adjusted price earnings ratio - or Shiller CAPE - for the S&P 500 is currently at 27.2, some 64pc above the historic average of 16.6. On only three occasions since 1882 has it been higher - in 1929, 2000 and 2007. "
Ten warning signs of a market crash in 2015 - Telegraph
Reply With Quote