05-18-2018, 05:08 PM
What the most horrible crashes need is a bubble economy in which speculation in securities and commodities becomes the Only Game in Town. Then, speculation crowds out investment in job-creating activities... and when the bubble bursts, there is nothing to replace the nearly-fraudulent activity of speculation. Investment in plant and equipment (which creates the industrial jobs necessary for a solid economy). Tax policies are attuned to feeding the frenzy in speculation, and public investment wanes except in the facilitation of the speculative bubble.
People fail to realize that the investment in a bubble is sheer waste of capital -- until the bubble bursts. By then the tax base has so shriveled that all that can rescue the economy is huge borrowing.
People fail to realize that the investment in a bubble is sheer waste of capital -- until the bubble bursts. By then the tax base has so shriveled that all that can rescue the economy is huge borrowing.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.