114. economic future
June 13, 2009 § Leave a comment
There are several dangers in the attempt at some kind of recovery .
First is trying (as the banks and administration seem to be doing) to get back to a credit driven economy. remember that finance had become 20% or more of the GDP and 40% of all profit. this was (and still is) a way of transferring wealth upward.
Second is that we reconstitute a dynamic economy, but with fewer participants, as workers, or owners. One way of looking at this whole episode is that it got rid of costly workers, and a rebound is likely to be at the GDP level but not at the employment level.
The core idea of a society is it is an agreement among all about how to proceed, and that means institutions must work for common good. Payoff to elites is probably an essential part of that, but here is a difference when representative democracy shifts toward oligopoly and oligopoly to kleptocracy.