Thursday, September 3, 2015

9/3/15 productivity and debt

They all are bemoaning the slow growth in productivity: chart is percent change yoy of the index



If the formula population growth + productivity growth + credit expansion = economic growth, then with both total population declining and productivity declining, you are left with monetary stimulus. Monetary stimulus means an increase in the money supply.

I believe that the establishment Republicans want more immigration to prevent the population from declining.  They are not interested in improving the economy such that white youth will start forming families faster because that would mean hurting their oligarch donors.  (Democrats want more immigrants for political reasons).  Establishment Republicans sincerely feel that social security is also at risk and want more workers contributing payroll taxes.

No one seems to be interested in finding a way to have a good economy with a declining population. Why?  Because debt.  Our economy needs to be bigger as a mean of reducing the burden of debt.

No comments:

Post a Comment