notes June 10 2008
June 10, 2008 § Leave a comment
The problem with this economy – everyone is stretched to the limit.
For example, meals on wheels, delivering with volunteers meals to home bound oldfolks. The volunteers can’t afford the gas price. Withdraw. Those oldfolks don’t get fed as well.
Restaurants:customers down,costs up. Fire a person or two to help cash flow. That person now without a job and him or herself already marginal.
Most business is run on borrowed money, meaning that interest has to be paid. As business slows, the easiest way to maintain a positive balance is though firing.
These margins take people from the edge of survival to negative income.
These people will sum up to a very dangerous part of the population.
Traditionally elites handle this by hiring part of the unemployed to defend themselves against the rest.
All this suggests we need a major alternative way of looking at the economy, at investment, and technological possibilities that will be needed to deal with climate change and land degradation.
All in the context of the ultimate measure:quality of life.
the testimony before the house Judiciary on Torture today is up (prepared statements.) Worth careful reading
The Reluctant Fundamentalist by Hohsin Hamid page 97
“When I was in college,” he went on, “the economy was in bad shape. It was the seventies. Stagflation. But you could just smell the opportunity. America was shifting from manufacturing to services, a huge shift, bigger than anything we’d ever seen. My father had lived and died making things with his hands, so I knew from up close that that time was past.”
“The economy’s an animal,” Jim continued. “It evolves. First it needed muscle. Now all the blood it could spare was rushing to its brain. That’s where I wanted to be. In finance. In the coordination business. And that’s where you are. You’re blood brought from some part of the body that the species doesn’t need anymore. The tailbone. Like me. We came from places that were wasting away.”
Tech deployment is dependent on finance.