If I had a nickel for every analysis of our present economic situation that doesn’t include a prescription for fixing things and, even more importantly, a viable path for accomplishing that, I’d be a wealthy man. The latest of the genre is Joel Kotkin’s piece at Forbes. In it he correctly, in my view, characterizes our present economy as a “plutonomy” and, again correctly, notes that there will be no return to robust growth until more people participate in the recovery. He concludes:
How to drive growth to these and other productive sectors may require not only changes in government policy but also reacquainting the investor class with the virtues of long-term growth, productivity and the revival of the mass economy. Perhaps once they do investors might earn something other than intense dislike from the rest of the population.
We have now returned to the “zero-sum game” problem I mentioned in my previous post this morning. The beneficiaries of the present economy apparently want others to lose even more than they want to win. Or they believe that when others lose they in fact win. You can’t run a republic that way.