Sunday, January 24, 2016


As Obama enters his final year and Clinton II devolves into desperate red-baiting, let's take a look at what the past eight years of DNC economics has wrought.

Not a whole lot. While some more jobs have opened up since the 2008 crash, they haven't been enough or paid enough to make up for the losses among middle and working class folks. It still counts as a recovery though because finance is booming.

For now.

Business, according to economist Thorstein Veblen, is not a productive sector of the economy. Production is antithetical to its purpose as that would mean spending something - or in the current case anything - to get to somewhere profitable. Business needs Industry, the material side of the economy with all the production and innovation, to sponge off of in ever more complicated trade deals and financial instruments.

It's really been something of a coup for Business in the past thirty odd years because now those same financial instruments that once robbed productive workers of their earnings are now robbing other financial instruments in a closed system that will generate wealth so long as no one looks too closely.

You'd think that means Wall Street is one audit away from another crash and you'd be wrong. The Fed demonstrated with its recent rate hike that the central bank is firmly behind the private banks in whatever ludicrous gamble they choose.This has nothing to do with "market stability" or whatever fantasies of fairness libertarians indulge in rather than facing reality - that being "[t]he Fed is a central planner that dare not speak its name."

None of this, from federal regulation to Wall Street money laundering schemes, is a rational or natural outcome. This is as politically driven as the hue and cry of #OscarsSoWhite. It's the same old politics that informed the Ancien Regime and the Robber Barons, the notion that being born with more stuff means the rest of society should serve to provide you with even more. The GOP funded pundits and even some Democrats may so otherwise - something about fair play and competition - but that is all trash. They are fools, liars, or both.

Economics has never been about what's fair. It has always been about power and survival. You don't owe a manager or CEO anything and the sooner everyone catches on to that single liberating fact, the sooner central planners like the Fed will start serving the interests of the productive classes, rather than Business.

No comments:

Post a Comment