Secular stagnation is deliberate obfuscation. It locates any “difficulty” within the business cycle itself, absolving the very policy makers from having to admit failure. It didn’t work for the Mayans, it will not work for progressives.
Being reluctant to admit policy failure is tantamount to death. Neither Islamists nor western progressives can admit to spheres of authority outside approved ‘master narratives’. Sad isn’t it! We though the adults ran the show. They don’t.
By ANY measure, median incomes have fallen in America. This is because the medium of exchange itself is destroyed. Nevertheless, high wage earners haven’t suffered under this monetary/executive regime. As Washington centralizes more grasp over civil society, it has already reached the point of diminished returns. Power/influence in civil society is completely decentralized. Not in Washington! As the increase in reach and scope of govmint continues to devour the very capital needed to sustain any enduring achievement, more spheres of American life are ‘tuning out’ and going native or rogue. This isn’t good. The commanding heights of once formal social/political institutions that served the means of assimilation are no more. The blight is real and it isn’t coming back.
As the concentration of wealth and opportunity begins to shrink, we should anticipate an exacerbated comity characterizing defeat.
Remember the age of Reagan, rising living standards, massive social mobility, real wage growth, disinflation, opening of markets, new technology. His economy grew on average 7% in real terms. GDP was a persistent 4.6%. Marginal tax rates were combined at 28%.
It all started during the second quarter of 1983.
What can the GOP do? It can begin making the case between collectivism & income inequality. The means used are fiscal, monetary and philosophical.
Where else do see the embodied mess that is collectivism?
While citizens are denied the ability to get to equity/capital formation, fat-boy govmint programs run amuck with bloated phony expansions of politically allocated credit. All at the expense of savers and those who struggle with new businesses or new business models.
Oh, and that unemployment rate, well. . . the growth of govmint underwrites phony job numbers. Yes, it’s THAT bad.
So if the GOP is serious, it will use the debt limit as a national referendum on the size, scope, shape of govmint with real legislative budgetary controls that LIMIT SPENDING, NOT JUST A REDUCTION IN THE RATE OF SPENDING GROWTH. We need fiscal reform from the House, reform for how the House conducts legislative business, the restoration of income growth, and tax reform. Debt limit controls constrain govmint spending (inflation). How about a real slowdown in automatic entitlement growth, serious pay cuts for Congressional members/staff, elimination of subsidized benefits until resolution.
Let’s face it, fat-boy govmint drives inequality.