December 26, 2011
A Gloomy New Year and Beyond
Much of my current reading promotes little optimism for the future of the United States economy, at least as it is defined by job creation and employment. The viability of our present political system, long term, is doubtful. We seem to be dysfunctional in many domains including economic, political, and cultural aggravated by a leadership vacuum that portends little positive change for the foreseeable future.
Some of my reading:
...and of course the daily slurp from the Times, the Journal, the TV talking heads and other online sources.
I believe we are in the midst of a substantial economic dislocation driven by the rapid and pervasive creation and adoption of technology by businesses, large and small. This accelerating trend means that fewer workers are required to deliver higher productivity in our economy. The resulting systemic upheaval means that not only ours, but the world's economy can produce goods and services with far less human capital than has been required historically. The result of a declining need for workers and increases in output creates societal and political strains that may lead to massive changes that we are ill-prepared to cope with. Government aid and backstops may be insufficient to deal with the magnitude of this change.
I hope to write more on this topic before the start of the new year.