“Eating Our Seed Corn: The causes of U.S. economic stagnation, and the way forward” – John Hussman
Deep and powerful analysis from John Hussman. The bullet points say it all, but the analysis reveals just how far economic policy has gone off the rails over the last decade or so. The unsustainable source of profits, the current status of the profit cycle, and the weakness of private domestic investment are very revealing. A long term perspective on the labor market showing the continued secular decline in employment and real income puts the recent minor improvement in context.
The scale of the problem requires a complete reorientation of policy. Continued extreme measures to somehow boost spending are the problem, they only delay resolution. Productive investment could transform the outlook, but the heavy preoccupation with consumption remains dominant.