I love how our social safety net is always identified as the big problem in govt spending while we keep expanding our military budget year after year without batting an eye. It's especially shameful because the Pentagon can never pass an audit and is undoubtedly the biggest source of fraud and corruption. How we spend our budget speaks volumes about what we value, but we all know damn well that the people have no control over our federal budget. Lobbyists and elite donors control our budget and studies exist to verify that. If the people actually had a say, I believe our budget would look very different and likely would not be in such a deep hole. So many problems boil down to donor money in politics, and that definitely includes our budget problem.
Attempts to stimulate consumer spending via central bank/state stimulus are now increasing inflation, crimping both household and state spending as debt service costs rise;
Unquote
Very astute observation
Unfortunately we do need a complete change in society
During the medieval times there was sustainability
Connection with animals as used horses and oxen
With our consumer based society the goal is more
So I guess change in society will be forced upon us eventually
The Black Plague and the Little Ice Age were in Medieval Times. About half of Europeans died. Not very sustainable.
CHS has pointed out correctly that goods produced today are often designed to fail after a few years. As CHS points out, free markets only work if there is trust between people. That trust is long gone.
There is a way out. But its neither pleasant nor possible for the current system. Individuals and small communities have a path forward. Its not going to be simple or easy in the least, but its more survivable than expecting the system to save us. At this point the system can't even save itself. No doubt some Strong Leader will arise... With the all too predictable consequences.
As you said, BJ, a way out is not possible for the current system. That was my point. Sorry, I didn't clarify that. An individual or a small community could find a way out. The Amish will survive it all.
"Richard Bonugli and I discuss these core issues in our podcast The Challenges of the G7 world (33 minutes), issues which boil down to one basic question: is pulling the levers of financial engineering enough to "grow our way out of stagnation and debt," or are more fundamental reforms required?"
pulling the levers are surely not enough.
"The key to "growing our way out of stagnation and debt" is to boost productivity. In the podcast, I refer to Total Factor Productivity, which is an attempt to "capture the 'secret sauce' of how an economy or business produces more output with the same or fewer inputs."
there is no secret sauce, by far the biggest factor to boost productivity is increased surplus energy flowing through the system.
it's definitely the elephant in the room.
your article discusses many other minor factors.
it's no big deal if you disagree, but (I didn't listen to the podcast) 33 minutes without discussing surplus energy is 33 minutes without discussing the elephant in the room.
One item: Since inception in FDR times, Congress has taken all payroll Social Security tax receipts and immediately spent them while putting an IOU in a file cabinet in an obscure office in W. Virginia. Does anyone understand how much money was generated on ALL payrolls over that period of time???? Workers paid 7.65 % and employers paid 7.65% in taxes on all payroll checks, which Congress immediately spent. In 2023 US payroll totaled $11.076 Trillion. Congress Social Security tax "windfall" was: $11,076 x 15.3% = $1,694,000,000 (that's Trillion). And they have the balls to blame old people demographics for our problems as they rob the Social Security funds for years and years. Us old retirees worked and paid for our social security benefits. Hell has some real nominees in our Congress!!!!
Stagnation is a symptom. Of what? Government over reach in all sectors. Demographics is only one of the problems. Family formation has fallen off a cliff. Military spending has passed insane levels. So called "health care" WILL bankrupt the system. At the foundation of all of these you find government. This book (you knew there had to be one... :) ) explores these and many related issues. https://www.goodreads.com/book/show/199798515-what-went-wrong-with-capitalism
I love how our social safety net is always identified as the big problem in govt spending while we keep expanding our military budget year after year without batting an eye. It's especially shameful because the Pentagon can never pass an audit and is undoubtedly the biggest source of fraud and corruption. How we spend our budget speaks volumes about what we value, but we all know damn well that the people have no control over our federal budget. Lobbyists and elite donors control our budget and studies exist to verify that. If the people actually had a say, I believe our budget would look very different and likely would not be in such a deep hole. So many problems boil down to donor money in politics, and that definitely includes our budget problem.
Quote
Attempts to stimulate consumer spending via central bank/state stimulus are now increasing inflation, crimping both household and state spending as debt service costs rise;
Unquote
Very astute observation
Unfortunately we do need a complete change in society
During the medieval times there was sustainability
Connection with animals as used horses and oxen
With our consumer based society the goal is more
So I guess change in society will be forced upon us eventually
The Black Plague and the Little Ice Age were in Medieval Times. About half of Europeans died. Not very sustainable.
CHS has pointed out correctly that goods produced today are often designed to fail after a few years. As CHS points out, free markets only work if there is trust between people. That trust is long gone.
There is no way out.
There is a way out. But its neither pleasant nor possible for the current system. Individuals and small communities have a path forward. Its not going to be simple or easy in the least, but its more survivable than expecting the system to save us. At this point the system can't even save itself. No doubt some Strong Leader will arise... With the all too predictable consequences.
As you said, BJ, a way out is not possible for the current system. That was my point. Sorry, I didn't clarify that. An individual or a small community could find a way out. The Amish will survive it all.
Yes the close connections with animals provide cross species virus mutations
"Richard Bonugli and I discuss these core issues in our podcast The Challenges of the G7 world (33 minutes), issues which boil down to one basic question: is pulling the levers of financial engineering enough to "grow our way out of stagnation and debt," or are more fundamental reforms required?"
pulling the levers are surely not enough.
"The key to "growing our way out of stagnation and debt" is to boost productivity. In the podcast, I refer to Total Factor Productivity, which is an attempt to "capture the 'secret sauce' of how an economy or business produces more output with the same or fewer inputs."
there is no secret sauce, by far the biggest factor to boost productivity is increased surplus energy flowing through the system.
it's definitely the elephant in the room.
your article discusses many other minor factors.
it's no big deal if you disagree, but (I didn't listen to the podcast) 33 minutes without discussing surplus energy is 33 minutes without discussing the elephant in the room.
in my opinion.
Does the older generation mortgaging the future of generations behind them really care what happens after they die?
One item: Since inception in FDR times, Congress has taken all payroll Social Security tax receipts and immediately spent them while putting an IOU in a file cabinet in an obscure office in W. Virginia. Does anyone understand how much money was generated on ALL payrolls over that period of time???? Workers paid 7.65 % and employers paid 7.65% in taxes on all payroll checks, which Congress immediately spent. In 2023 US payroll totaled $11.076 Trillion. Congress Social Security tax "windfall" was: $11,076 x 15.3% = $1,694,000,000 (that's Trillion). And they have the balls to blame old people demographics for our problems as they rob the Social Security funds for years and years. Us old retirees worked and paid for our social security benefits. Hell has some real nominees in our Congress!!!!
Stagnation is a symptom. Of what? Government over reach in all sectors. Demographics is only one of the problems. Family formation has fallen off a cliff. Military spending has passed insane levels. So called "health care" WILL bankrupt the system. At the foundation of all of these you find government. This book (you knew there had to be one... :) ) explores these and many related issues. https://www.goodreads.com/book/show/199798515-what-went-wrong-with-capitalism