Economists have failed humanity. Their models aren’t just flawed and terrible; they are dangerously flawed and terrible.
The narratives we live by shape our very reality and our responses to the world around us. If our models and narratives are wrong, then we are going to make bad, if not self-destructive, decisions.
Bad ideas, models and narratives drag you further and further away from reality, the longer they are allowed to persist and metastasize.
“You can ignore reality, but you cannot ignore the consequences of ignoring reality.”
~Ayn Rand
Perhaps the most important interview by Tucker Carlson this year was with macroeconomist Richard Werner.
Say what? An economist? Are you serious?
Yes, and here’s why. The core flaw in our monetary system is that it requires debts to expand faster than the underlying economy. Forever.
We take out loans to expand the economy, and we sometimes take out loans on “non-self-liquidating” consumptive things, like houses and trips, and vehicles that are more expensive than necessary to transport us to and from work. And sometimes those business ideas simply don’t pan out, so the loans aren’t expansionary.
But even if the consumption or busted business idea was a flash in the pan, or the car only lasted 6 years, the debts are usually longer-lasting. Those loans keep ticking along, amassing interest that must be paid each payment period, while the principal must be paid back as time unfolds.
by cmartenson