Discussion in 'Economics' started by ajacobson, Oct 12, 2018.
Greenspan on growth
Sometimes I feel that 2/3rd's of the wealth in the world is in America and Regulators/Liberals Democrats, Pepsi Drinkers & Prius owners are intent on holding it back...
This may have somewhat to do with our personal perspectives.
The only measure that really matters is not the nominal wealth of a nation and not even per capita wealth, but the mean standard of living in the lowest wealth quartile in a nation, and ultimately in the lowest wealth quartile of all nations. In measures of real prosperity the U.S. is doing well when measured against all nations, but when measured against the other industrialized countries it is doing rather poorly. This should be taken as a sign that something is seriously wrong with our country. But of course this assumes that it is better for rich and poor alike to live in a country with broad prosperity than narrow. Not every one would agree, and fewer still would even bother with the question. Frankly, many are so busy making ends meet they don't have time for philosophical reflection.
Too much regulation and inefficiency may be an unavoidable price to pay for broad prosperity in a large democracy. The only way to achieve perfection in regulation and efficiency may be through absolute, benevolent dictatorship -- think Singapore . If so, would that be a risk you are willing to accept? India is the world's most democratic large nation, the regulations and inefficiency there are stifling. Perhaps the U.S. has at times past been very close to an optimum mix of democracy, law, regulation and efficiency without our recognizing it. Did we keep on trying to fix something that wasn't broken until finally we broke it? -- privatizing prisons?; privatizing passport issuance?
Perhaps it is time to concentrate on fixing only the things that are broken. Healthcare, Education, the Criminal Justice system, and infra structure. Fixing those things alone would be a tall order. Perhaps we should let those things that are imperfect but not broken ride for the time being? Just saying, perhaps! What that would mean of course is that we stop trying to fix social security by wrecking it; stop trying to fix medicare by wrecking it; stop trying to fix medicaid by wrecking it; stop trying to fix the internet by wrecking it, and stop trying to fix government by wrecking it.
Of course , if we do have time to think philosophically, we will recognize there is a great deal of money to be made in wrecking things.
But for me personally and selfishly I prefer the percent of DISPOSABLE income that I have.
Setting priorities is the crucial thing that matters for me. Personal financial growth can be far from economical growth in general.
And that's true, as far as we see the diversities in personal income and taxes changes while doing economics graphs and charts becomes the only thing American growth machine can produce...
"Of course , if we do have time to think philosophically, we will recognize there is a great deal of money to be made in wrecking things."
The state of the art of modern politics.
That suggests you don't get out much and have a very limited, unrealistic view on the world.
The America he described:
is no longer the America today. In California voters approved bonds to build a high speed rail between LA and SF. After years and billions spent, not a single miles of high speed rail was constructed. Then there is the Keystone pipeline.... In the US today, gridlock is the norm rather than the exception.
In fact Greenspan was talking about the China of today.
Speaking of Greenspan, another good book is
Greenspan's Autobiography, "The Age of Turbulence." I'm reading it right now.
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