By Artis Shepherd
Thanks to the Fed’s creation of asset bubbles, the US economy is producing many billionaires. However, the savvy entrepreneur is becoming increasingly scarce.
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By Artis Shepherd
Thanks to the Fed’s creation of asset bubbles, the US economy is producing many billionaires. However, the savvy entrepreneur is becoming increasingly scarce.
An even bigger question is what productive ability even means in a world of unrestrained monetary inflation.
I might be very good at tricking people into giving me (and my employers/clients) money. But does that mean I have "productive ability"?
Bitcoin doesn't have unrestrained monetary inflation, yet you can ride another ponzi to accumulate it. As a handful of corporations we shall not name any of are proving, and as even more individuals have been doing since you could buy Bitcoin with Linden Dollars.
This makes me think that scammers be scamming, no matter whether there is monetary inflation or not?
Also, I think that output vs wages suggests that peak gap growth happens when scamming goes unchecked (Covid) much more than under unbounded brrr (ZIRP)?
It's hard to say, since Covid was the greatest money printing event in modern American history
It’s a really good question. I’ve had interesting conversations with productivity economists about related topics.
In particular, if you have an industry that receives lots of government subsidies, should you include those subsidies in the producer’s optimization function?
They’re often excluded because the focus is on the conversion of real inputs into real outputs but that obviously misses the behavioral impact of the policy.
Yes, pumping fiat debt into non productive speculative assets does that.
This is a problem when fiat bankers gain power over politicians and win the right to issue fiat debt toward any purpose rather than fiat debt capital issuance being restricted to funding purposes which are productive.
This is exactly what happened in the neoliberal era of bank deregulation and ever since the wests productive capacity and competitiveness has decline and non productive speculation, especially in housing has crippled our productive economies.
Commercial bankers must be restricted to only funding productive purposes- but this has not been the case for many decades now and is one of the major root causes of the decline of the west.
The more interesting part to me is whether this is a monetary phenomenon alone, or also a structural shift in where talent and incentives are actually going.