Toward a New Macroeconomics, Part One

askblog via Coyote Blog

Interesting macro economic model.

It is divided into four quadrants.

Each quadrant is a description of events occurring under that economy.  The events are divided into creativity and destruction.  The intersection of events in the table defines the economy.  The highest growth quadrant is the one with the highest destruction and the highest creativity.  The lowest growth quadrant is the with the lowest destruction and the lowest creativity.

Guess who is sneaking into that latter category?  And who is already there?

China isn't in the highest growth quadrant according to the Coyote Blog, interestingly enough.  But they are closer to it than we are.

The majority in this country believe we are on the wrong track.  Yet they vote for Big Government Liberalism that guarantees that we stay there.  Go figure.

It might help if the GOP would make an argument, but they won't even try.  They just assure us if we vote for them, that things will get better.  It isn't a convincing argument.

Update:

I need to expand upon this line of reasoning because it isn't enough to just put this out there.

As anyone would note who reads this blog will know that I advocate for the molten salt reactor, amongst some other things.

The reason?  It is cheaper than coal.  Why is this important?

I've studied the three greatest titans of American industry---Rockefeller, Carnegie, and Ford.  Each of them share a common purpose:  Cutting costs to a minimum.  This is a principle worth following in macroeconomics.  If you have a technology that results in the cheapest cost, you'd better use it.  The risk if you do otherwise will be the kind of economic stagnation that we now suffer under.

Sure, fracking is a good thing.  But it isn't good enough because it isn't cheap enough.

I pushed an idea that will make both work synergistically for making transportation fuels at the cheapest possible price.

It entails a destruction of a sort---which is the way we do things now.  We import oil and put them into low efficiency automobiles.  This results in a high cost solution for personal transportation.

If you replace gas powered autos with hydrogen fuel cell vehicles; produce the hydrogen from abundant gas from fracking; and remove the carbon from the hydrogen- you then can have a system that can replace the costly system we have now with an efficient and clean one that will be a boon to the economy.

Talking about creative destruction.  We have all these technologies within reach.  All it takes is for a little imagination and a little guts.