Last week ur-blogger Jerry Pournelle wrote:
The way out of our economic problems is increased production. It’s a lot easier to divide up a big pie than a small pie. Socialism only works if there’s very high production, enough so that the people willing to work hard are able to produce enough to keep those who want to consume hard without doing a lot of work if not satisfied — my experience is that the non-productive consumers will always find leaders willing to demand more and more — at least out of the streets.
There are two keys to increased productivity: low energy prices, and a well educated work force imbued with a work ethic. Eliminate either and you have a society either unable or unwilling to meet the demands of the non-productive (which includes both the deserving poor and the undeserving poor as well as those “employed” in “jobs” that consume but add nothing to the goods available for distribution). When energy prices and/or appropriate education are threatened, it’s rather difficult to have a positive reaction.
Hat tip: Glenn Reynolds
Jerry may not have noticed that the “well educated work force imbued with a work ethic” has either
1) been going to work for the government;
2) been going to work for industries largely funded by the government, e.g. healthcare;
3) went to work in the financial sector because that’s where the real money was;
or 4) haven’t found many jobs available because there haven’t been a lot created over the last eight or so years.
As I’ve said before I don’t think there’s a master stroke, no single plan that will revive the economy but tens or hundreds or thousands of steps that need to be taken just as no single thing has slowed our economy.
But if we need to point to one single master stroke then low energy prices it is. An educated work force with a strong work ethic hasn’t been working too well for us.
