by Gary North
Recently by Gary North: C.S. Lewis Warned Against the New World Order
MarketWatch ran an article on the lack of optimism for the American job market. It offered no analysis of why the market is bad, but it made it clear that it is not likely to get better anytime soon.
The article focused on the job market since 2008. It included a chart on salaries since 1980. It has three categories: college graduates, high school dropouts, and total. The chart reveals that there has not been much improvement for a decade. The flat-lining of salaries began a decade ago, not in 2008.
Conclusion: things are a lot worse than the article reported.This flat-lining is not simply a result of the recession of 2008-9. It is a long-term condition.
. . . . . . .[read full article]. . . . . .
Nothing is working. The annual deficits are at $1.3 trillion. There is no sign of relief. The job market is in the pits. The Establishment economists' explanations no longer explain the persistence of the problems. The Keynesians call for more government. Europe is moving into recession. Another war looms in the Middle East. If oil goes to $150 or more after an attack on Iran, the world economy will head back into recession.
The Establishment got us into the mess. It is unable to get us out.
This creates opportunities for rival explanations with rival solutions.
The best explanation is Adam Smith's: too much government. The solution is laissez faire.
The problem is convincing voters, half of which are recipients of government payments.
Phi Beta Iota: Brother North is brilliant, right up to where he bleeds to death from the enlightenment fallacy. He has written a very long article that is very good on the evils of government employment and government entitlements (one third based on borrowing in our name), but falls short in his conclusion that “laissez faire” is the solution.
What we have now is virtual laissez faire” for the financial white collar criminals and the transnational organized crime families, both of which were too powerful for a dishonest government. As George Soros and the Third Order Science collective have pointed out, the fatal fallacy in Libertarian philosophy and Austrian Economics is that man is “rational.” Man is not rational. Uneducated man is very irrational. Uneducated man isolated from a community with conventions and mores is even more irrational.
The concept of “community” and the concept of “commonwealth” are not important to Libertarians and Austrian Economics, and this is also why Ron Paul fails the sensibility test — he is all about Liberty while neglecting General Welfare, which is co-equal to Liberty in the Preamble to the Constitution.
The Club of Rome made a choice in 1970. It made the wrong choice. It chose the top-down micro-management solution now known as Limits to Growth. It rejected the bottom-up approach that called for universal education and universal consultation so as to achieve sustainable reforms. Organized money can only get so far — as Will Durant tells us in The Lessons of History, the only real revolution is in the mind of man. That is our epitaph. We failed to focus on the mind of man, and focused instead on the false god of money.
There are two inter-related solutions: generic design science such as John Warfield pioneered, and a restoration of community-based coherent long-term decision making with full true-cost understanding.