RE: Will The Economy Collapse?
December 21, 2012 at 8:23 pm
(This post was last modified: December 21, 2012 at 8:25 pm by jonb.)
The problem with economics is that all the theroists have forgotten the basics.
A town will grow at where the communications are easy and add little costs to the produce. If however the cost of land is made so high that it counters those costs there is no benefit to being in that town and it shrinks. What has happened to the world economy is that the markets have been contrived so that money goes predominantly to the wealthiest, who invest in assets. This makes the cost of being in a town higher through cost of housing, rents etc, so much so that the towns are unable to grow. This is why most modern economies have followed Japan's example of high land prices and little or no growth.
There are economists pointing in this direction, but their voices are being shut down through a process called 'effortless superiority'. Where maverick voices that do not agree with the current model are being silenced in academic economics.
A town will grow at where the communications are easy and add little costs to the produce. If however the cost of land is made so high that it counters those costs there is no benefit to being in that town and it shrinks. What has happened to the world economy is that the markets have been contrived so that money goes predominantly to the wealthiest, who invest in assets. This makes the cost of being in a town higher through cost of housing, rents etc, so much so that the towns are unable to grow. This is why most modern economies have followed Japan's example of high land prices and little or no growth.
There are economists pointing in this direction, but their voices are being shut down through a process called 'effortless superiority'. Where maverick voices that do not agree with the current model are being silenced in academic economics.
