Digging and with no sign of letting up either. Sigh. I don’t pretend to be an economist. Krugman may be able to parse the economic shitstorm to find useful data; it’s just that I can’t find common sense finger-holds in any of his solutions.
Economics as a study of wealth must include the human dimension. The very real impacts of group think, geopolitics, and the malleable construct that is human motivation are brought to bear on economic theory in ways that often produce the unpredictable. The black swan event. The impossible.
We do have a few constants. Recessions recur. In recent times, they were not allowed to run their fevered course; instead we apply fiscal measures to allay and delay the collapse of institutions ‘too big to fail’. This encourages even further excesses and experiments in Fed sponsored fail proof investing. Wall Street gets richer, main street poorer.
The next recession is shaping up to be a doozy. This ‘fourth turning’ will be built up on massive debt, a sharp deceleration in the velocity of money with a concomitant collapse in credit and, I fear a domino like collapse of institution after institution, in one country after another.
It’s a shitstorm, and instead of umbrellas and sandbags, we’re digging. And Digging. And Digging.