Stop throwing capital at hopelessly unproductive works.
-Parasitic middle men and other agents and speculators
-Public sector workers who do not justify their existence or salaries
-Excessive salaries and bonuses at executive level
-Manufactured commodities that do not hold their value
-Goods and services that do not raise ‘value of existence’ for humans
-Processed food that negatively impact health and vitality
-Misguided enterprise driven by agendas (eg. ‘green’ agendas)
-Trophy goods and acquisitions
The thing about throwing capital at stuff like the above, is that the capital soon disappears for ever, and gives nothing back. That’s why we have to keep borrowing… and borrowing… and borrowing…
So, we haven’t really done anything enduring about the present crisis, yet.
You know how much a speedbump costs? I’m informed it’s about 3,000 euro each. - So, how much did we spend on speedbumps during the boom??! They popped up bloody everywhere, all over the country! Some of them you can just drive over by swerving and making sure your wheels pass each side. Others ensure that your car is going to have only half the lifetime it was designed to have. Not to mind the environmental destruction and fuel waste through all that braking and acceleration. But the vast, vast majority are unnecessary and are a bane of peoples’ lives. - Nevermind that putting a few speedbumps on someones’ road was FF’s preferred method of vote gathering. ‘Ah, sure, vote for me, and I’ll put a few speedbumps and mini roundabouts on your road there for you, love’. - I think we can wave goodbye for good to all the millions and millions spent there, anyway.
They might well learn how to avoid this particular crisis in the future but i doubt many will listen, even if they did a financial crisis will come to pass somewhere, sometime, it is the nature of capital markets, whether based on tulips, gold, paper money, or anything else. The greatest flaw is the one impossible to contain, human sentiment, simple as.
The current stimulus craze is as a direct result of studying past crisis and indeed has been proven to work short term, many would say prior stimuli are part of our problem today having delayed a proper reset and inflated additional bubbles to get us to an even greater crisis.
There’s something I left out of the list of ‘hopelessly unproductive works’ I gave above - marketing and PR.
Apart from being a hopelessly unproductive work that wastes capital in and of itself, it also acts on human sentiment to encourage the direction of capital towards all of the other unproductive works.
Sure, speculation is one of the very worst unproductive works. - The human sentiments (or subconscious desires) underlying it are a base covetousness, concupiscence, egotism etc. Also, an aspiration for power that produces its own madness, seen most obviously in extravagant risk taking. These kind of base desires and weaknesses are perfectly suited for the sciences of marketing and PR to work their magic on. video.google.com/videoplay?docid … 825999151#
In past crises, it was mainly the speculative frenzies that took hold and spread among people, and caused capital to be destroyed. However, in this crisis, it has also been rampant consumerist frenzies, stoked by marketing and PR, that share the blame for the destruction of extraordinary amounts of capital. This is true to a much greater extent in this crisis than previous crises.
I think we all know that the next time this happens people will say “its different this time” they will claim we would never make the same mistakes again and that regulation is now at an appropriate level.