Here’s the new reality, written by someone at the Atlantic: “The Secret Shame of Middle-Class Americans: Nearly half of Americans would have trouble finding $400 to pay for an emergency. I’m one of them.” He writes:
I never spoke about my financial travails, not even with my closest friends—that is, until I came to the realization that what was happening to me was also happening to millions of other Americans, and not just the poorest among us, who, by definition, struggle to make ends meet. It was, according to that Fed survey and other surveys, happening to middle-class professionals and even to those in the upper class. It was happening to the soon-to-retire as well as the soon-to-begin. It was happening to college grads as well as high-school dropouts. It was happening all across the country, including places where you might least expect to see such problems.
It’s not a money-tree you need but a production flow. Wealth is based on real saving and real investment and its dividend is the output of goods and services produced. But it will only work if the economic system is directed by entrepreneurs, with governments as far a way as possible doing only what is required to keep the machine running in good order. Ultimately, living standards fall because there is no structure in place to keep them up.
It’s the same here. Watching Malcolm in action – with the NBN a perfect example of economic illiteracy and ignorance, leaves me unable to identify what is required to make someone like him understand what is actually required to create prosperity and growth.