The Problem with Solving the Economic Mess

Personally, I think the problem is that no one actually has an answer here. Rather than try to figure out a unique solution to what has shown to be a product of the failure of several different types of systems, the users of the old systems keep praising the old systems as the only way to solve the problem that the old systems caused. All of our economic models in the past really don't solve a perception problem, which is the biggest problem that is the real big elephant in the room. We can talk about tax cuts all day but without a job to cut taxes on, it doesn't really make a difference. We can talk about increasing spending, but if there's no income to continue that spending, then it becomes temporary and ends after a short impetus. The problem is that people realize this now. They realize that the money geniuses weren't really geniuses but were just good at saying what was necessary to keep the other money geniuses capable of taking advantage of the happy thoughts that were being produced. Once the happy thoughts turned into sober realizations, the whole house of cards started to collapse.

What is needed is a new solution that moves away from making money off of greed rather than solid production. When the people making all of the money are the ones who have no idea what the companies are actually doing, other than from some spreadsheet, there is a problem. But because people kept making money off those spreadsheets, no one cared. Years and years ago, sober rationalists were trying to explain that you can't keep firing engineers and hiring more executives who don't produce anything just because the company is big enough to keep being traded high on the stock market. When all of those engineers realized the money was to be made in managing rather than producing, we had a real problem on our hands. We STILL haven't addressed that, nor are we ever going to because people still want to believe that money can be made from talking about business rather than producing solid items that businesses can sell. People have become experts at selling the labors of business but somehow thought it would save money to get rid of the laborers. This isn't a marxist sort of complaint, but a logical kind of complaint.

No one in this globalized world has realized the impact this has made over the last few decades. There's a reason why smart, sober people kept claiming that we have a lot to fear from China and India. These are the places where a lot of the production force has existed, and it's slowly ushering out the executive corporations that used to think they could move all their labor over there. Now, they have huge factories we built and slowly these countries have moved out the companies that built those factories, allowing the factories to be taken over by homegrown executives who now have the resources to produce items that we no longer can produce ourselves because we stopped doing it a long time ago, thinking someone else would do the grunt work for us.

Anyway, I'll leave it at that because I get so tired of the Keynesian versus whatever logic that keeps getting thrown about. I've been complaining about this for a very long time now, and I finally just gave up because everyone knew better.

Stumble It!