(no subject)

[timelets]

...the first 20 or 30 years of diffusion of each technological revolution lead to an increasing mismatch between the economy and the social and regulatory systems. The latter were developed to fit the requirements of the previous paradigm and cannot cope with the new conditions. In addition, the changes occurring in the techno-economic sphere imply a huge social cost in loss of jobs and skills as well as in geographic displacement of activities. The previous framework is unlikely to be prepared to absorb or counterbalance those costs.

Perez, C. Technological Revolutions... , 2002.

Deficit financing of corporate profits and trade wars (both collectively known as MAGA) are misguided attempts to compensate for the massive loss of skill and geographic displacement. The entire economic policy toolkit of the current administration belongs to the previous industrial revolution, which helped America succeed on the ashes of the Second World War. There was no technological/financial rivals back then, but there are at least two now. And what does the Covfefe administration propose to address this fundamental issue? "Build the Wall." What a waste of time, money and social capital.

Comments

[juan_gandhi]

What can we do. Jus wait maybe 10-20 more years, right?

[timelets]

Individually, we are already doing useful stuff, e.g. by putting our personal efforts into new technology skills or investment strategies. The problem for a larger society is that, as Ray Dalio puts it, "capitalism is not working for 60% of the people." It's the same capitalism that worked for the industrial society that is not working in a new socio-tech environment. He actually proposes a national emergency task force to at least openly discuss the issues. Instead, we get wild swings from MAGA to New Green Deal to MMT.

I guess, the first goal would be to get incompetent idiots out of the government.

[juan_gandhi]

Incompetent idiots have been doing well in large and small companies, for decades; why won't they survive in the governments?

[timelets]

Well, the difference is that we (and many other people) usually can walk away from idiots in large and small companies because alternatives are generally available. It's harder to walk away from a country where you have the vast majority of your investments, both in real and financial assets. We should at least try to change something if we can.

[juan_gandhi]

This is true.