An Inconvenient Truth

[kandrathe]

An economic slowdown is not the worst price I would pay to not take such a chance.

-Jester

Although... Totally unneccesary. The industrial revolution has induced a myopia in that most people align prosperity with conspicuous consumption. Steps should be made toward retooling our economic system to reward savings and conservation, and tax consumption and waste. We should also encourage investment in and give tax breaks to innovators that promote productivity, reduce pollution, and reduce consumption. The only time you really see slow downs or stagnation is when drastic changes disrupt or alter the equation. I think the genius of Greenspan was that he made small course corrections, rather than the "over steering" that had been characteristic of his predecessors. Many things are still out of control, so there are times when wars, embargos, etc will mess with the balance. So, more generally, I'd say that markets hate surprises.

So... if you stand back from the world economy... No. Further back. It is a fairly silly/stupid thing. People have certain needs (food, shelter, clothing, meaningful work), and if prosperity were measured against those items much of the world would be considered wealthy. Instead they keep setting the GDP growth bar higher, and higher so that the wealthy can differentiate themselves from the less wealthy. Now it is true that there is poverty, pain, and suffering in many parts of the world, but there is a palpable difference between the desperation of urban Atlanta or Frankfurt, versus urban Kinshasa, or Mexico City.

So, to be more clear in what I'm getting at. Let's say that 40% of the worlds work force is all that is needed to grow and produce all the food, clothing, shelter, and basic services needed. The remaining 60% are doing what? Either wealthy enough not to work, or working to produce items, or services that are "nice to haves" that people consume with "disposable" income. Another way to look at that gap is that there is a 60% excess capacity in the essential labor force which keeps busy producing things people don't really need in order for them to draw a paycheck. So I would think if we changed our mindsets to measure the satisfaction of basic human needs, rather than looking at the % growth in GDP of which a vast majority is conspicuous consumption.