Tuesday, May 12, 2020

New Information Trickling In Slowly — Brian Romanchuk

New information is trickling in quite slowly, and I doubt that we will have much in the way of clarity with respect to the economic outlook for awhile.
The pandemic is a sort of exogenous shock economically, but not systemically. The high likelihood of a pandemic in the near future was already in the knowledge base. Unfortunately, a globalized world had not thought this through and prepared for the eventuality. As a result, uncertainty now prevails and there is a cacophony of voices all expressing different and often opposing views.

To certain extent, "capitalism" can be held accountable since there was no market incentive, and, in fact, past behavior suggested moral hazard. In neoliberal age in which nation states are regarded as similar to business, existing to profit their "stakeholders," chiefly the owners of capital as the driving force of growth; governments are regarded as administrative personnel, and citizens are treated as employees, if the chief stakeholders don't see a stake in it for them, it doesn't happen.

In this arrangement, workers become similar to soldiers as "cannon fodder."

Why was this an "exogenous shock"? That's the way the system is set up.

But what about China? One views it that China is capitalist now. I disagree with this view. Actually, once the situation became clear, the government got right on it, took charge and was assisted by the largest firms. In addition, Chinese culture features social  responsibility and civic duty, which are in short supply in contemporary liberal societies that are focused on "freedom" but ignore that freedom and responsibility go hand in hand.

Bond Economics
New Information Trickling In Slowly
Brian Romanchuk

1 comment:

Andrew Anderson said...

but ignore that freedom and responsibility go hand in hand. Tom Hickey

What you call "freedom", Tom, is license - license via a government-privileged private credit cartel to steal from the poorer and other less so-called "credit worthy" of what is currently the PUBLIC'S CREDIT but for PRIVATE GAIN.