One of the problems our insolvent industrial economics has, and it’s only one, is quantitatively aggregating value, GDP is the easiest example, then saying this provides a clear picture of what’s happening in the economy. Unfortunately, the fact is all dollars are not equal, for example a dollar spent on potatoes feeding a family of four, has a lot more value than a dollar spent on landscaping a home in Bel-Air, just don’t tell an economist this. It’s why they can interminably bleat American economy is no longer as reliant on oil, and when the price of oil goes up, it’s no harm to the economy, “After all, we now only spend “x”% of GDP on oil.” Nonetheless, the price of oil goes up, the economy slows. Who you going to believe, your lying eyes or a Nobel Laureate?
January 18th, 2012 | Comments (62)
