Of Two Minds

We need a new iteration of economics that advances beyond the obsolete, misleading statistical measurements of bygone eras. Let’s focus on a largely forgotten history, one within living memory of everyone born in the 1950s, a history of signal importance to our understanding of the forces that will dominate the next decade.

The second essential step is to recognize how the spectacles of “news” and entertainment distract our attention from this erosion of basic rights. Hierarchical power structures like city-states arose as problem-solving solutions<, not just for the elites who benefited from the concentration of wealth and power but for the citizenry.

If the Fed succeeding is a “Black Swan,” bring it on. What if the “Black Swan” of 2023 is the Federal Reserve succeeds?

We have the capacity to learn from previous civilization’s errors–rising inequality, hubris, over-reach, decay of production and trade, parasitic elites, and so on–yet we go right ahead and repeat those same errors.

As painful as this liquidation and repricing of risk is for borrowers and lenders, those without debt, those with cash and those with essential skills that are in demand regardless of boom or bust will all benefit.

If we want social / economic renewal, we have to make it easy to climb the ladder to middle class security for anyone willing to adopt the values and habits of thrift, prudence, negotiation, and hard work.