4 ms·

No, I’m basing my predictions on a thorough study of history and the phases of civilizations. There are several deep cultural and structural problems with both

No, I’m basing my predictions on a thorough study of history and the phases of civilizations. There are several deep cultural and structural problems with both the US and the EU, and I find it difficult to not see this continuing. And as far as I know, millennials are economically worse off than their boomer parents.

imtringued 5y ago
There are a bunch of reasons but lets start with a big one. People get richer but they optimize their tax burden. Remember, debt creates money. There is always enough money in the economy to repay all debts. Interest merely circulates a few times between bank and debtor which may require some inflation but not hyperinflation. There might not be enough tax revenue when those with enough money stop paying them. This causes an excessive tax burden on the working upper class, the middle class and below while Gates and Jeff Bezos earn money off of the appreciation of land which has a much lower tax burden. People started measuring their wealth through the monopoly of land. Since land is in finite supply inefficient land use and speculation have become profitable because there is an underlying economic rent to be extorted out of people living on or near the land. Governments spend millions or billions on infrastructure only to see untaxed land values go up. Work piling. Either you get a job or not. The threat of unemployment causes desperation and extreme competition for low skilled jobs while employers start demanding degrees for all the "good jobs" which are locked behind other forms of monopolies like college education and medical licensing. If work was shared among people then we could have a shorter working week like all those economists talking about a 15 hour work week (ok it would be 30 hours or more but still). This is especially pronounced because low skill workers not only compete with other Americans, they also compete with every low skill worker around the world. You need an unfair moat to compete in such a world.

imtringued 5y ago

There are a bunch of reasons but lets start with a big one. People get richer but they optimize their tax burden. Remember, debt creates money. There is always enough money in the economy to repay all debts. Interest merely circulates a few times between bank and debtor which may require some inflation but not hyperinflation. There might not be enough tax revenue when those with enough money stop paying them. This causes an excessive tax burden on the working upper class, the middle class and below while Gates and Jeff Bezos earn money off of the appreciation of land which has a much lower tax burden. People started measuring their wealth through the monopoly of land. Since land is in finite supply inefficient land use and speculation have become profitable because there is an underlying economic rent to be extorted out of people living on or near the land. Governments spend millions or billions on infrastructure only to see untaxed land values go up. Work piling. Either you get a job or not. The threat of unemployment causes desperation and extreme competition for low skilled jobs while employers start demanding degrees for all the "good jobs" which are locked behind other forms of monopolies like college education and medical licensing. If work was shared among people then we could have a shorter working week like all those economists talking about a 15 hour work week (ok it would be 30 hours or more but still). This is especially pronounced because low skill workers not only compete with other Americans, they also compete with every low skill worker around the world. You need an unfair moat to compete in such a world.