Above the Laws? Not Really:
Good Morning world; ready or not, your King of Simple News is on the air.
King of Simple friend, Les, posted the following comment on the weekend post: I think we have reached a point in America where 1% population growth won’t net more than 1% GDP growth.”
What Les is referring to is most often called, “the law of diminishing marginal returns.” Note the word “law.” Just like the laws of thermodynamics, the law of diminishing returns is set in stone.
The law of diminishing returns can be explained in two ways; (1) Refers to how the marginal production of a factor of production contrast to the increase that would otherwise be normally expected, actually starts to progressively decrease the more of the factor that is added. (2) Explained here in Mikeronomics, Increased output , don’t equal increased input.
The increase that Les was speaking about was the input of human population in an effort to drive growth. In the past, economists and deranged politicians saw a steady correlation between population increase and an increase in consumption that could be measured by Gross Domestic Product. In other words, GROWTH is good.
So then, is human labor subject to the law of diminishing marginal returns? Is employment in general subject to the law? Let’s see, we used to have full employment and we now have (even with fictitious government numbers) 10.2% unemployment. So yes, I’d say that human labor is having quite a bout with the laws of physics.
When our government spurred the housing bubble to escape the last great recession, they were expecting different results, but the law of diminishing returns spoiled the day. The price of housing increased, the number of homes being built certainly increased, the associated taxes increased, and the percentage of per-capita mortgage debt in the U.S. really, really increased…but wages didn’t increase all that much. Well heck, maybe there really is something to this law of diminishing returns.
As wages decline due to overpopulation and diminishing resources (law of supply and demand), each person added to the pie has less and less positive influence on the expected growth. In the end (which we reached some years ago) each added person has a negative impact from the standpoint of increased marginal output and thus, results in an overall lower standard of living.
No problem there, we can all live at a lower standard and continue to increase population to the point of 10.2% unemployment…oh, we already did that.
The word “optimum,” is defined as, “the amount or degree of something that is most favorable to some end; especially : the most favorable condition for the growth and reproduction of an organism.”
We can look around the globe and pick out the countries that have exceeded their optimum human capacity. We can view the animal kingdom and watch Mother Nature handily dispatch cruel remedies for those species that overpopulate.
But then, we’re special and not subject to optimum conditions, overpopulation, the law of diminishing returns, the law of supply and demand, the laws of thermodynamics, or anything else that gets in the way of our quest for relentless growth. After all, growth is the foundation of our entire monetary and economic system, why let a few silly laws get in the way?
I purposely repeat myself; what we are dealing with is a set of physical laws, not some pet social program that politicians and big business can manipulate at will.
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I agree with everything, except one small statement..
“When our government spurred the housing bubble to escape the last great recession, they were expecting different results,”
I don’t know for sure, but I contend that they knew exactly what the results would be.. They intended to cause this crisis.. There is still more to come.. It’s working for the rich on Wall Street..
WmA..
WmA,
Logic would contend that you are correct in assuming that government had to know that they were creating a housing bubble that was unsustainable. However, I do believe that government made the wrongful assumption that wages would rise.
Your comment that it is working for the rich can be witnessed today, as it was announced that bonuses for the big banks will exceed $30 BILLION this year…a new all time record.
There is nothing wrong with growth or complexity; up to a point. The problem seems to be that the human race is not smart enough to know when to stop. Especially the rich and powerful.
There is an old German expression; too soon to get old, and too slow to get wise. We need to get wise before it is too late.
I agree that things are working for Wall Street; for now anyway. However, when you set fires to clear the brush on your land, you must take care not to burn your house down. I think the flames might be getting close to the homestead now.
“What we are dealing with is a set of physical laws, not some pet social program that politicians and big business can manipulate at will.” -Mike
I do believe that with modern movie magic, special effects, a media that is nothing more than a puppet for big business and big government we but just begun to see the amount of manipulation big government and big business can pull off. I think the late Saturday night hi-jinks that our House of “So Called” Representatives pulled over on us is a fine example. Yes the “Tail is truly Wagging the Dog”!
Greg,
As you stated, we lack the wisdom to achieve balance. In fact, our underlying economic system is designed to produce automatic imbalance.
When M. King Hubbert testified in front of Representative Morris K. Udall’s Subcommittee on the Environment in 1974, during the question and answer period, Udall asked, –”this inflation that we are all so concerned about now may not necessarily be mismanagement of the economy or some temporary problems necessarily, but may be built into this whole problem of exponential growth in terms of the population and use of resources, and so on. Is that what you are saying?” Dr. Hubbert’s reply was, “It has been going on, the record is unequivocal, since 1910, disregarding the disturbance of World War I.”
It’s unsettling to realize that a Representative of Morris Udall’s status had no former knowledge of the subject, and even more troubling to realize that 35 years later, we suffer from the same ignorance.
Mike,
I believe that most people have been hoodwinked into believing the growth paradigm from cradle to grave from all angles. This would include TV, radio, print media, billboards, NASCAR, every sporting event, and on and on and on. Advertising is really propaganda in its slickest form and the populace licks it up like ice cream.
We are led to believe that there is a “liberal” media and a “conservative” alternative. That is a lie. The national media are all corporate whores and reflect that agenda and that agenda only. There are a few alternatives, but they have no audience to speak of.
I really believe that many people intuitively know the jig is up, but just can’t bring themselves to fight the entrenched interests. It will take an economic cataclysm to wake up the majority of the people.
Why do you think the government made sure everyone could get a free digital converter box?
Probably the most successful government program ever. Made sure every American can watch TV.
Hotrod,
You said, “Advertising is really propaganda in its slickest form and the populace licks it up like ice cream.” Great point!
I was just thinking about AARP’s support for Obamacare. AARP is one of the slickest advertisers in the world. Most people see them, not as a mega insurance business who stands to make many, many more millions under Obamacare, but rather as a bunch of nice old people looking out for other old people. It’s the perfect scam!
A Sears commercial a couple of days ago suggested that things are tough and Sears feels our pain and is lowering prices to make it easier for people to buy Christmas presents. Sears could care less about the public, other than separating them from their money before Wal-Mart gets it.
George,
As Les said, everyone got a free converter box in order to view the special effects in full living color.
Hotrod, well said. Unfortunately, the typical American wouldn’t understand a word of what you are saying.
American’s simply don’t understanding propaganda and are defenseless when confronted by it. They have been to told over and over that they are special, and because they are “free”, propaganda would never work here. Only Communists and Nazis use propaganda. God fearing America would never do that!
Little do they realize, the American people are the most heavily propagandized people in the history of the human race.
After touring the US for several weeks, a Russian newsman once noted with amazement that Americans were so compliant and went along with anything and everything the government said. Everybody towed the official government and corporate line willingly. He marveled at the achievement, saying at home in the USSR, they would send people to Siberia and torture them and still not get that level of compliance.
As you note, cradle to grave, every American has been told how the world works. We don’t educate American children, we indoctrinate them. The corporatist belief system has been marketed and spoon fed to Americans 24/7, and no one questions a word of it.
I find it hilarious that just about everyone thinks their personal beliefs and opinions have been arrived at independently, when in fact they are merely parroting back what the government and corporate America tell them. Like it or not, that is a stunning achievement.
I have to laugh when I think of a scene from Star Wars where Obi-Wan Kenobi is stopped by Storm Troopers asking for identification. Using a Jedi mind trick, he tells them they don’t need identification; that he is no threat, and that they should let him pass. The head Storm Trooper immediately repeats verbatim what Obi-Wan said, and his troops allow Obi-Wan to pass. Better yet, none of the Storm Troopers realize they have been tricked. Is America a great place or what?
The reason wages stagnated this past decade was so many high paying jobs were exported. The real estate bubble was no substitute.
I certainly agree that the old trick of growing the GDP by importing more people ran out of gas. But the reason for this is most of those imported were poor Mexicans. Their presence here is unlikely to raise the GDP. They don’t make much money. I certainly saw quite a few of them driving more vehicle than they could possibly afford. But now credit for such purchases has dried up.
The incomes of the US middle class were swindled to line the pockets of the wealthy elite. In my home town, there are wealthy people who are largely out of sight and poor people, who are numerous. Neighborhoods that were once solidly middle class sit blighted today with ominous gang graffiti spray painted on their dilapidated siding. In my home town and thousands more like it across America, the middle class is conspicuously absent.
I call it diminishing reality and it seems to be diminishing at an accelerated pace. As one astute observer succinctly put it, “this isn’t a recession, it’s a collapse.”
I think most of you have seen the Great Depression era photo, “Jobless Men Keep Moving. We Can’t Take Care of Our Own.”
America needs to post a similar sign. I think it’s realistic to assume that we will have stagnant growth for the next decade if not longer. Allowing 2-3 million people to legally immigrate to America every year will start to take its toll, not to mention the half a million illegals.
There won’t be enough good jobs to go around. There may not be enough crappy jobs either.
Making their own laws hasn’t worked.
http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Pfizer-abandons-site-of-infamous-Kelo-eminent-domain-taking-69580497.html
Well Bobcat, you’ve done it. You’ve coined a new King of Simple blog phrase, “The point of diminishing reality.”
A great new subject surfaced in this thread, that of indoctrination and propaganda (often one of the same).
While in the barber shop yesterday, I heard Shawn Hannity on the radio say, “We have the greatest healthcare system in the world.” He said it perhaps 10 times. I thought to myself, sure, we have the best, if you can afford it; which Shawn Hannity can.
We also have the best supermarkets, the best automobile dealerships, the best golf resorts, and the best legal system…if you can afford the products that are offered; which Shawn Hannity can. Indoctrination and propaganda can always be traced back to personal benefit.
Hutch,
The Eminent Domain case that you provided the link to, is classic evidence that exponential growth will occur, even if they have to take everything that we have to accomplish it.
Not so long ago in Denver, the powers were about to seize a three generation, very clean and tidy, automotive repair shop for the benefit of Wal-Mart. The public from around the entire state went absolutely berserk! The great powers chose to retreat and fight another day.
Les and Bobcat, I can hear the conversation regarding unemployment, “Mr. President, more and more people are losing their jobs every day, what should we do?”
“Mr. Secretary, I think we should increase immigration and give citizenship to all the illegals that we encouraged to sneak across our borders. The object here is growth”
“But Mr. President, won’t that make the problem worse?”
“What problem? WE, don’t have a problem. WE get paid every week and have great heatlh insurance and retirement benefits. WE have limousine and private jet service…keep that in mind before you open your big mouth next time Mr. Secretary, or YOU may have the same problem the peons have.”
“I really believe that many people intuitively know the jig is up, but just can’t bring themselves to fight the entrenched interests. It will take an economic cataclysm to wake up the majority of the people.” - Hotrod
Sounds like someone in a really bad marriage but afraid to file for divorce. Most people will bend over backwards to rationalize their fears away. I do believe that it is slick propaganda and indoctrination thanks to the very slick advertising arm of Madison Ave. and Hollywood. Enough special effects and there you go, the wow factor alone will continue to pull the wool over a majority of Americans eyes.
It reminds me of a scene in “Judge Dredd” a not half bad science fiction action movie from a few years back, where all of America is crammed into but a few Mega Cities and the rest of the country and most likely the world is nothing but a wasteland. Well anyhow the propaganda got the the point of this advertisement “Eat Recycled Food; It’s good for you and great for the environment” and people were lining up for it.
How much “Recycled Food” are we buying into today???
George,
Hotrod said, “It will take an economic cataclysm to wake up the majority of the people.”
I have contended for years that nothing less than total collapse will get the average person’s attention.
As a stark example of the disconnect from reality, as millions of Americans lose their incomes, homes, and freedoms, the same government that created this mess gets limousine service, while the majority of the public considers whether to re-elect the Republicans!!! What more will it take?
“As a stark example of the disconnect from reality, as millions of Americans lose their incomes, homes, and freedoms, the same government that created this mess gets limousine service.” - Mike
Here is an example that really has my blood boiling today!
“In my own life, in my own small way, I have tried to give back to this country that has given me so much. See, that’s why I left a job at a big law firm for a career in public service, ” - Michelle Obama
Michele Obama does not get paid to serve as the First Lady and she doesn’t perform any official duties. But this hasn’t deterred her from hiring an unprecedented number of staffers to cater to her every whim and to satisfy her every request in the midst of the Great Recession.
Just think, Mary Lincoln was taken to task for purchasing china for the White House during the Civil War. And Mamie Eisenhower had to shell out the salary for her personal secretary from her husband’s salary.
Total Personal Staff members for other first ladies paid by taxpayers:
Mamie Eisenhower : 1 paid for personally out of President’s salary
Jackie Kennedy: 1
Roseline Carter: 1
Barbara Bush: 1
Hilary Clinton: 3
Laura Bush: 1
Michele Obama: 26
How things have changed! If you’re one of the tens of millions of Americans facing certain destitution, earning less than subsistence wages stocking the shelves at Wal-Mart or serving up McDonald cheeseburgers, prepare to scream and then come to realize that the benefit package for these servants of Ms Michelle are the same as members of the national security and defense departments and the bill for these assorted lackeys is paid by, all of us!!! John Q. Public:
Michele Obama’s personal staff:
1.. $172,200 - Sher, Susan (Chief Of Staff)
2. $140,000 - Frye, Jocelyn C. (Deputy Assistant to the President and Director of Policy And Projects For The First Lady)
3. $113,000 - Rogers, Desiree G. (Special Assistant to the President and White House Social Secretary for Mrs. Obama)
4. $102,000 - Johnston, Camille Y. (Special Assistant to the President and Director of Communications for the First Lady)
5. $100,000 - Winter, Melissa E. (Special Assistant to the President and Deputy Chief Of Staff to the First Lady)
6. $90,000 -Medina , David S. (Deputy Chief Of Staff to the First Lady)
7. $84,000 - Lelyveld, Catherine M. (Director and Press Secretary to the First Lady)
8. $75,000 - Starkey, Frances M. (Director of Scheduling and Advance for the First Lady)
9. $70,000 - Sanders, Trooper (Deputy Director of Policy and Projects for the First Lady)
10. $65,000 - Burnough, Erinn J. (Deputy Director and Deputy Social Secretary)
11. $64,000 - Reinstein, Joseph B. (Deputy Director and Deputy Social Secretary)
12. $62,000 - Goodman, Jennifer R. (Deputy Director of Scheduling and Events Coordinator For The First Lady)
13. $60,000 - Fitts, Alan O. (Deputy Director of Advance and Trip Director for the First Lady)
14. $57,500 - Lewis, Dana M. (Special Assistant and Personal Aide to the First Lady)
15. $52,500 - Mustaphi, Semonti M. (Associate Director and Deputy Press Secretary To The First Lady)
16. $50,000 - Jarvis, Kristen E. (Special Assistant for Scheduling and Traveling Aide To The First Lady)
17. $45,000 - Lechtenberg, Tyler A. (Associate Director of Correspondence For The First Lady)
18. $43,000 - Tubman, Samanth a (Deputy Associate Director, Social Office)
19. $40,000 - Boswell, Joseph J. (Executive Assistant to the Chief Of Staff to the First Lady)
20. $36,000 - Armbruster, Sally M. (Staff Assistant to the Social Secretary)
21. $35,000 - Bookey, Natalie (Staff Assistant)
22. $35,000 - Jackson, Deilia A. (Deputy Associate Director of Correspondence for the First Lady)
(total = $1,591,200 in annual salaries)
There has NEVER been anyone in the White House at any time who has created such an army of staffers whose sole duties are the facilitation of the First Lady’s social life. One wonders why she needs so much help, at taxpayer expense
Note: This does not include makeup artist Ingrid Grimes-Miles, 49, and “First Hairstylist” Johnny Wright, 31, both of whom traveled aboard Air Force One to Europe .
Source Canada Free Press.Com
canadafreepress.com/index.php/article/12652
George,
Great article and good sourcing. Like I said, what will it take?
It will take nothing more, as that would require effort on our part and disrupt our faulty belief system. Our nation is headed the direction it wishes to proceed and will land where it belongs. Hoping will not change this and those futile hopes will shatter upon our arrival. Many will have their fingers directed at all others. Few will look in the mirror and understand the truth. -bb
I just saw a trailer for “collapse” the movie. Basically covers what we’ve been talking about. Look’s like a pretty good movie. It’s a shame that it plays on one screen for one day in the major cities
http://www.collapsemovie.com
Greetings all,
If anyone has doubts that the government knows what is going on and deliberately deceives, read this:
http://www.commondreams.org/headline/2009/11/10
They don’t want panic because they will lose control and power.
Pathetic.
Les,
I loved the line in the movie trailer, “Bernie Madoff wasn’t a pyramid scheme, the WHOLE ECONOMY is a pyramid scheme.” And so it is…The Biggest Lie Ever Believed.
I need to mention that overall, I’m not a big Mike Ruppert fan, but his logic in “Collapse” is right on. Ruppert left the U.S. forever in 2006; is he back?