WR,
that is the best article I've read on new economic thinking in awhile. I love it. Really good thinking. I've heard before of the concept of continuous compound growth being unsustainable. I'm a big believer in human lifecycle spending and consuming patterns as a great mover over long run economic cycles and growth potential, which is why I've always railed against socialism, which assumes the never-ending growth of the economy, versus the reality that the Baby Boomers are consuming all resources in sight, with a smaller generation that comes after them, which simply doesn't have the resources nor earnings power to pay for all the Entitlement promises the Baby Boomers made to themselves.
That is why I believe all promises to pay must be broken down into promises to individuals, paid for by taxes collected from those individuals, rather than run like a ponzi scheme like Health Care and Social Security.
Anyway, if we had economists who were experts in real science, as the article talks about, then maybe they'd learn simple lessons, such as the fact that models that assume compound growth forever always lead to collapse, once resources are totally consumed. :) |
