Economics We Don't Understand
Robert J. Samuelson, The Washington Post | September 29, 2008
We are witnessing the very "bankruptcy of modern economics." ++ While we have long understood demand-oriented macroeconomics, the current financial crisis does not conform to any previous economic model or known solution. ++ The previous $152 billion stimulus package didn't help, since the problem lay with financial markets, not consumer markets. ++ The Paulson plan is the most effective solution to date. ++ The Fed has taken on a role never anticipated as the "lender of last resort" - its role is now enormous and elastic.
Tue, Sep 30th 2008, 02:34
Jeff Hathor, www.engfuture.com, Silver Contributor (31)
Ancient Russians or Slavic people named the Family as the first level economic unit and the village as the second level economic unit. Middle ages Britain created knights or Barron’s each having their own castle and village or villages. These Knights band together to form a state/realm or 3rd level economic unit. Late ages the Dutch East India Company created the company as an extendable economic unit. The headquarters of the company would be in Holland and still provide advice and supplies to parts of the company located in another part of the world. New York City started as a colony or small trading company owned by the Dutch East India Company.
Modern Corporations are similar to the Dutch East India Company, with the experience and resources to expand to other countries. Our modern economics are switching to a global posture to both share the work and share the wealth on a very large scale and very quickly.
So where did it start to go wrong? Let’s face it; this is not an entirely new process.
Let’s start with an obvious point of obsession, 9/11 attack on WTC. Directly following this action Wall Street which is sometimes considered a fear and rumor based operation anyway, decided to dump American corporate stocks. People reacting in fear sold their stocks at low prices and lost their retirement money, their children’s college funds. Some corporations closed up. Many other corporations lay off workers. All this because stock market chiefs freaked out and gave full power terrorists.
Then Pres. Bush says we are going to start a new plan of Global Economics (before we had recuperated). We will outsource the current level of jobs to India and China. Then we will create the next level technology jobs for Americans and Europeans to replace the jobs we outsourced. The outsourcing part of the plan was started immediately, yet 7 years later where are all the next level technology jobs? There are a few just clearly not enough. Yes outsourcing did bring inflation down, yet how can people without jobs buy any products. The plan is still not completed and our banks are collapsing because we thought we could value the corporation over the individual workers.
Creating Next Level Technology Jobs. Pick an area where we have a foundation and still have room to grow. Example:
Ocean industry = fish farming, resource gathering, shipping.
Space = Satellites, near earth asteroid defense, colonizing other planets.
Auto = Ecology friendly autos.
Energy = Ecology friendly sources of energy, wind, solar.
Now have the government sponsor the expansion of these projects to create jobs which will build and maintain the new areas of interest in the USA and Europe to REALLY replace the jobs that were outsourced.