Don’t Take It Out On The Messenger

Sometimes the messenger is easy to dislike, in which case the message is ignored and the messenger becomes the issue. A recent example was the billionaire real estate mogul, Jeff Green, was interviewed by Bloomberg at the Davos _World Economic Forum where he had this to say:

America’s lifestyle expectations are far too high and need to be adjusted so we have less things and a smaller, better existence.… We need to reinvent our whole system of life.

Source

Needless to say, suggesting that the little folk need to lower their expectations and adjust to have less, went over like the proverbial lead balloon. In a later interview with CNBC, Mr. Green tried to “adjust” his words:

What I said was, ‘the global equalization of wages and technology, which is growing at an exponential pace, has killed so many millions of jobs in America and other Western economies and it’s going to kill them at an even faster pace going forward.‘ I said, ‘we have our work cut out if we want to build a real economy, an inclusive economy that I grew up in, that I want to see for all Americans,'”

I am sorry folks, but this billionaire was just being candid. Asylum Watch has been saying the same thing for a very long time. Technology can provide everything mankind needs or wants except a way to keep 8 billion people usefully occupied. The central planners in our governments and central banks are only making things worse. The diminishing returns of different forms of stimuli are hardly measurable anymore and it is far too late for austerity to work. The world needs some sort of paradigm shift and I’m afraid I don’t have a clue what that might entail.

Well, that’s what I’m thinking. What are your thoughts?

 

Suggested reading:

Roubini: Why QE isn’t working

 

Advertisements

29 thoughts on “Don’t Take It Out On The Messenger

  1. I laughed when I read his comments initially. Imagine flying over all the serfs in your jet and telling them that they need to adjust their expectations. You first, mf’er….that was my first thought.

    All we need is a free market economy and to slash and burn federal government to the bone. It’s like a cancer that is slowing destroying the fabric of our culture. Just giving big pharma 20 year patent protection has cost us trillions- and destroyed competition. That’s one tiny example of a government that consistently destroys free markets and distorts them- picking the winners along the way.

  2. The billionaire has a valid point. With runaway technological advances jobs must eventually be scarcer than fathers in the hood. Conversely the need for serfs, snuffs and peons having flat screen TV’s and flush toilets is on its way to being untenable unless Central Planning declares these things are rights and gives them to everyone. I can see it now: illegals given Wal-Mart vouchers at the border crossings measles and all. In the final analysis the problem of overpopulation and lack of employment will be solved by a system which ultimately leads to genocide, socialism.

  3. New technology may replace old jobs, but it also creates new jobs,too. The trick is to figure out how to make new technology create enough new wealth to generate enough new jobs to replace those old lost jobs.

    Henry Ford faced that conundrum when he started building them thar horseless carriage thingys that nobody could afford, find fuel to drive them, nor f=find roads to drive them on. His solution was to generate demand for his new product by paying his employees enough money so that they could afford to purchase what they built. He put wagon train drivers out of work in droves.

    Today, Ford’s concept has evolved into 10s of thousands of gas station mini-marts where you can fill-up with a liquid potent enough to blow you to smithereens with a single spark while purchasing ding-dongs from millions of non-English speaking clerks.

    That’s progress!

    1. “The trick is to figure out how to make new technology create enough new wealth to generate enough new jobs to replace those old lost jobs.”

      Sadly, that trick hasn’t been working too well since about 1999.

    2. The fact is our government keeps taking a bigger and bigger chunk out of the private economy. If our Federal Overlords are not taxing us, they nationalizing us and making us one with the great god-state.

      Oh well — I suppose there is a bright side. Once we all mind-meld, I suppose it won’t make any difference. Then we can enjoy the benefits of power and wealth through the mind of our Dear Leader, that is through the “The Matrix.”

      Even as we blog our leaders prepare to dumb our minds and numb our souls. How else would we so stupid as to let them stuff our nation with illegal immigrants, terrorist fanatics and dope peddlers included; tax the stuffing out of us; throw away military victories in Iraq and Afghanistan; nationalize our health care; nationalize our public schools; nationalize mortgage lending; regulate our economy to the point we cannot buy ordinary toilets and light bulbs; and so forth.

      Really, we have become pathetic. We point to the government and say it’s broken, but we are the government. That’s the nature of a republic. And yet most of us cannot explain what a republic is and why we have one.

  4. The man is correct. Whenever you decide you want to compete in the world economy, the world learns to compete with you, and your income will rise or fall towards the global mean (average, or something like that). Sorry, I had to get all mathy.

    What we are not doing is competing on the level where we basically rule, and that is in financial capital. To compete with the foreign hordes in technology, we have to automate more and better with capital investments. Right now, our government is making it more profitable for corporations to ship their capital overseas.

    We see modern semi-conductor factories and modern auto factories financed by US investments all over the world. Intel, GM, Apple, Ford, etc are all building big factories in China and other Asian countries. Given the proper investments, there no reasons why, short of politics, that we cannot be manufacturing our own iPhones and other electronics.

    With automation, capital costs edges out the cost of labor, and we can handle the capital investments, except for the penalties the government places on US corporations.

  5. “..in which case the message is ignored and the messenger becomes the issue..” Which is exactly what Holder and other Admin people do constantly………They blame FOX for exposing the truth and slam it so Americans don’t hear that truth. Tough times, folks.
    We have to fight it.
    I’m for ALL SIDES being heard…or NO SIDES….like the old days on the news; JUST THE NEWS. Sadly, I’m thinking now that Americans have been so indoctrinated, or are so much prefer to hear about Prince George’s pajamas or Kardashian’s latest wardrobe malfunction, that they honestly don’t know enough to make an informed thought. that’s BAD

  6. Hey Brian. I’m fine, thank you for your concern. Actually I’m feeling better than normal since I stopped stressing myself out over the insanity in the world. Umpteen times I started a post and by the time I was a third of the way through, I lost interest. But, I still have at least one more post I want to do. Maybe in a week or so. Meanwhile, I’m keeping myself busy playing correspondence chess _ an old dog is trying to learn a new trick.

  7. Checking back, Jim. Glad you are O.K. I get you on the stress factor…even the strongest warriors have to R & R sometimes. Take care!

  8. Checking in — not sure you will see this, but want to say Merry Christmas. I hope you are doing o.k. And think of you often. Sending good thoughts your way….

  9. A very late reply but… A different view too. You attribute too much to “the powers that be”. Why do you think the jobs are moving abroad? Do they create economic difference where they land? Simple answer NO. There are more definitions of slavery than physical owership. Power and Control used to be manifestation of the mind. When u subjuate the mind to basic needs well!! Not today, they learned a lesson. Even the most hardened slave owners NEVER broke the mind but under the guise of “civilization” more is done to break spirit and mind directly or indirectly. Hope u get out of ur burn out soon. Still in the middle of mine and look foreward to more from yoi

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s