How to have a balanced economy

֎ AXIOS distributed a concise and clear statement about why world population rates are dropping. It is a quality statement about a topic that doesn’t get much news coverage but can be a significant interpretation of social response to unsympathetic governments. It is typical that economic health is measured by GDP, inflation, and stock markets but the Axios article suggests that it is the condition of the population that determines the efficiency of a given economic philosophy. Some excerpts:

Why world population is slowing – Population growth is continuing to slow in the U.S. and China . . . Why it matters: Population growth spurs economic growth because it can increase innovation, workers and goods produced and consumed . . . What’s happening: U.S. immigration, life expectancy and fertility are all trending down.

We focus way too much on percent growth like quarterly GDP. We should think about what people want. What level of immigration people want. What age would people like to die.

Americans still want multiple children, but they’re worried about child care costs, their own student debt and a pause in their careers . . .

China has relaxed restrictions on the number of children families can now have. But the new policy seeks more to bolster the workforce than to promote population: The Chinese Communist Party is also raising the country’s retirement age, curtailing a key source of child care . . .

The bottom line: If countries want population growth to pick up, leaders must first fix underlying causes of the slowdown, including cost of child care and fear of immigration.

֎ From his lofty spot in the esoteric atmosphere, Guru suggests that the problems confronting nations in the 21st century will not subside until it is understood that political theories work best only in tailored economic situations. Guru said:

COMMUNISM works best in primitive conditions where authority is based on contributing to the wellbeing of other citizens and the economy is sustained solely by local labor and predictability. If one watches any of the homesteading shows on television they are watching classic communist behavior. Dictatorships that call themselves communist nations are misleading. Even the term ‘nation’ is stretching the concept. The reader may remember the commune movement in the US during the 60’s and 70’s but it failed because the surrounding economy was too sophisticated.

CAPITALISM works best when authority is based on assuring the freedom of all citizens to compete for available resources – but this works well only in economic conditions where there are plenty of resources to go around. The US was created at a time when an entire continent of unused resources was available and the expansion of worldwide economic resources was exploding as new places were discovered around the world. Capitalism was the perfect economy to scarf up resources at a geometric rate making the US the richest nation in the world. Alas, these resources have been depleted; in the 21st century there no longer are enough resources to go around for everyone. The population is too large to have everyone freely compete for resources.

SOCIALISM works best when authority assures equality among the citizens and the economy is stable and predictable. The Native Americans sustained a socialist economy for thousands of years because the resources, especially on the plains and seacoasts, were stable and predictable – until the capitalist authority killed all the buffalo, beavers, doves and destroyed important estuaries.

AUTHORITARIANISM works best when authority enforces social order in an economy that is inadequate or out of balance with the existing authoritative role. Once authoritarianism is in place it is difficult to remove; authoritarianism has no scruples other than power – just like Lord Acton said in 1887.

There are many other variations on the four basic economic philosophies. Corporatism is a style of capitalism; plutocracy is a form of capitalism; militarism is a variation of authoritarianism; Sheikdoms, China’s communist party and monarchies all are variations of authoritarianism. Tribalism, populism, classism, insurrection and other social movements can become significant and derail unbalanced economies – often allowing authoritarianism to emerge.

To use an allegory, consider the tight wire walker. The walker is authority, the wire is population and the long balance pole is economy. If the wire and the pole aren’t in sync, the situation becomes unstable.

Ancient Mariner

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