“Take out the feds – who are redistributing wealth, not creating it – and US GDP growth was about zero for the last decade.
There. That’s a trend. Here we are in the 21st century. With all that technology. And all that money. And all those sophisticated Wall Street geniuses allocating capital like nobody’s business. And what do we get? Growth at about the same rate as during the Middle Ages.
Remember how the latest communications technology was supposed to speed up growth? How could you have forgotten? Back in the ‘90s it was taken for granted that faster, better communications would make people smarter, more efficient and more productive.
It was widely believed that the old ways of creating wealth – by saving, learning, investing – were obsolete. Because you didn’t need savings. You could build on knowledge!
No more trial and error. Mistakes were soooo 20th century!
That’s what they said.
We knew it was nonsense. Imagine Napoleon’s starving, freezing troops… trapped in Russia. Those that didn’t freeze to death were shot to pieces by the Russkies. Imagine giving them the blueprint to a nuclear bomb. Or even the designs for an aeroplane. Or, give them an iPad! What good would it have done them? None!
But most people didn’t see it that way. They thought the communications revolution would speed up the rate of GDP growth and make us all rich.
It didn’t happen that way. The decade following the communications revolution was dry, desolate, and barren. Take out the feds’ redistributed loot and the private sector registered approximately no growth at all.
It was a complete bust. A failure. A flop.
Go figure.” Bill Bonner
N.B. Every bit of information that is not useful is a burden. A bit like a “quality system” then. Collecting a burdensome mass of information most of which is only of interest to inspectors.
Can you guess why they didn’t call it an “inspection system”?