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Old 02-25-2019, 04:00 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,482
Parkinson't Law and welfare

You should read this entire article. It shows that population growth has ended in America.

It also shows public debt which is growing close to exponentially. The chart shows that "other" investors are buying GOV debt. This is just a continuation of an old charade claiming that on group or another is investing in FED GOV.
State employees are cannibalizing the productive economy to keep their salaries and pensions financed. Illinois stands out in that they are selling off public property to cover shortages. California continuously raises taxes for the "poor" or the "highways" or the "environment" The new taxes invariably go to support CALpers.
FED GOV has to invent imaginary investors to finance itself. After the 2007 crash, CBs pumped in $250 trillion to make sure that there would be enough liquidity to keep State debt financed. Salaries for Eurocrats in Brussels and millions of bureaucrats worldwide.

"What is fascinating about this is that Parkinson's Law, albeit having been variously formulated since its first statement in 1955, predicts that the staff within a bureaucracy will expand at a rate between 5 and 7 percent per year, “irrespective of any variation in the amount of work (if any) to be done.” Isn't it interesting that government debt falls precisely within this range? "
"From this perspective, things look quite different: the public debt in 2010 constant dollars barely budged from 1950 until 1971, when Nixon closed the gold window and decoupled the dollar from gold. Without the discipline of gold (before, if the U.S. ran up large deficits and printed money to cover them, foreign central banks could exchange the excess dollars for gold, emptying out the treasury's vault), there was no constraint on the issuance of debt and the creation of dollars and the curve began to climb to the sky, slowly at first and then at an accelerating pace. Here I've fit an exponential to the period from 1971 through 2010, and once again it fits pretty well, with a growth factor of 4.8% per year, just a tad below Parkinson's range of five to seven percent. "

I suspect that the graph of the growth in public debt is close to a proxy for the increase in jobs displaced by automation. 22.5 million "work" for the State. 95 million are not in the labor force. FED GOV is trying to float along the whole show by printing money. Efectively, this is some form of Chartalism.

Nixon closed the gold window after his predecessors fired up the welfare-warfare system .
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