joes

Forget the 1930s; We're Reliving 1975 (Part II)

This comment is the most useful one that I've seen in a while on SA, it describes the real problem instead of doing Tarot Card analysis on the past to tell us the future.

Joseph Schumpeter and his theory of Creative Destruction describes the way that creative destruction,", a process in which the old ways of doing things are endogenously destroyed and replaced by new ways, is the process of adapting capitalism into a more inclusive system over time, e.g. Socialism.

Neither of these terms matter in the nurturing of the key to progress in his view, the entrepreneur, who take emerging technologies and processes to create the next class of businesses, and therefore workers.

He was a fan of the Gold standard back in the early 1900's when he lived, but in reading his work it appears that the common currency that is being discussed by China, India and others that would be issued by an IMF type of organization would provide the same linkage that gold did in the past.


On Jul 28 01:10 PM alajac wrote:

> 1975 is about the time the cybernetic revolution (an incredibly deflationary
> "creative destruction" force) really kicked in. that's why no prior
> time period (when we look back at this) will be found to have been
> "corresponsive". The economic resource distribution system that worked
> before (get a job, work, make money so you can eat, etc.) is not
> going to get the job done going forward. Companies can "hire computers
> and robotic machinery" and, after few years, have almost no labor
> costs, almost no health costs, almost no pension costs, no labor
> turnover costs, almost no training costs, etc. Us "useless eaters"
> are left with "flippin' burgers, changing bedpans, and stocking shelves",
> I know MANY bright, attractive college grads who are doing EXACTLY
> those kinds of jobs today and are glad to have them. The COMING DEPRESSION
> will not end until this problem is addressed and permanently handled.
> The solution is easy and can be found in many of my previous SA comments
> and also on my classmates.com profile and messages page (look up
> "alan jacquemotte")