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It was the zero interest money that effectively removed price as a signal from capitalism. Capitalism relies on negative feedback to correct errant behavior, us
by mikewarot 3y ago
It was the zero interest money that effectively removed price as a signal from capitalism. Capitalism relies on negative feedback to correct errant behavior, usually in the form of lower stock prices, or bankruptcy.
Combine the end of zero interest money with the retirement of the baby boomers, AND the people Long Covid took out of the work force, and we're looking at a decade or more of 10% interest rates.
Fiscal Discipline is coming back, the physical economy (an odd, but precise, phrase used by Lyndon LaRouche) always lurked in the background, masked by the free money.
- kazen44 3y agoalso, i hope this is a good thing. Hopefully people will spend their resources on actual tangible problems compared to the massive, absolutely insane money burning machine that is the VC based startup environment.
- michaelcampbell 3y agoI agree with your larger point, but do you have any #'s of "long covid" workforce removals? My gut says it's in the 1/10'th of a %, but I don't know either.
- mikewarot 3y agoI found this estimate of 2.4% of the working population[1], 4 Million full time equivalent workers. [1] https://www.npr.org/2022/07/31/1114375163/long-covid-longhaulers-disability-labor-ada https://www.npr.org/2022/07/31/1114375163/long-covid-longhau...
- michaelcampbell 3y agoInteresting, thanks.