The last election cycle revealed a badly needed tutorial on macroeconomics, especially considering the social impact of digital technology on production, inflation and wages.
Productivity increases (chiefly through implementing digital technology) allow for the intensification of the division of labor, which with a stable currency (read The Federal Reserve Mandate) results in lower prices for consumer goods and services and lower production costs. Under these conditions, wage growth outpaces inflation affecting nominal GDP; hence wealth creation.
Another way of reiterating this empirical reality is to explain that the wealth of nations is related to growing output in a competitive environment driven by increased productivity and market expansion through trade. Govmint policy has a constructive role in this process, although it is not what progressives advocate. Politically driven expenditures either through explicit taxation or the hidden tax of inflation cannot be identified as the principal source generating wealth creation.
Fortunately, with the arrival of digital technology, the west has supplanted an intractable problem advertised by Marx, namely the adversarial relation between capital and labor. Digital technology used in a decentralized political economy identifies human capital as the fulcrum of the wealth creation process.
Madison beat Marx!
William Holland
William Holland 