Given all the discussion regarding a more sustainable use of earth's resources, one might expect more concern about sustainable long term budgetary strategies as well. Why, then, hasn't this been the case? Part of the problem, is that governments and populations are overly reliant on long term debt for the funding of high skill services generation.
However, this approach leaves too much applied knowledge vulnerable to the limits of asymmetric reciprocity. Too many debt instruments now discourage symmetric resource use for services generation. Alas, debt as services "solution" encourages a societal perception that carefully managed national budgets aren't as important as other aspects of sustainable resource use. Even though monetary representation (in its most immediate and usable form) reflects direct resource reciprocity, a substantial amount of monetary representation supports less direct means of high skill services funding.
And, in part because of the future reciprocity expected of services debt, monetary representation of the latter is less likely to be kept in active circulation in the economy, than the former. When money becomes "sterilized" on such terms, it may actually be designated as a measure of current value, instead of as a current medium of exchange (This process also prevents nominal inflation at a general equilibrium level, but simultaneously deflates investment capacity). Part of the impulse to sterilize money is due to the lack of immediate reciprocity for services generation. Hence some monetary representation (also reflected in divisia) can actually obscure the crucial role of money in wealth creation via immediate resource symmetry. Chances are, it will be a while before differences in monetary divisia roles become more apparent, since monetary representation is still evolving in response to recent services dominance in general equilibrium conditions.
In all of this however, future generations are expected to pay for many high skill knowledge based services being provided in the present. This being the case, is it any wonder that while younger generations are concerned about earth's sustainability, they aren't particularly worried about long term budgetary sustainability? Especially if policy makers aren't attempting to reduce the burdens of future generations in this regard! When every political party starts to run with the money while in power, what would make free college for all any more egregious than other forms of budgetary excess! Since younger generations have been sorely compromised at basic levels of governmental policy, that could explain why they no longer find a middle ground in policy making, all that compelling.
Unfortunately their lack of concern is quite understandable. That said, I still believe in long term approaches for long term debt burdens. Let's face it, Keynes probably didn't emphasize that "In the long run we are all dead" because he didn't care about the long run. Rather, he may have been worried that economists wouldn't continue making strong enough contributions or adjustments as needed, to help ensure economic stability for the long run. Call me old fashioned perhaps, and not sufficiently cynical given present political circumstance, but I still worry that if long term debt burdens are not soon addressed, much of today's economic prosperity will eventually unravel. Regular readers also know I doubt we can still tend to these issues on general equilibrium terms in a complex economy. Which is why I suggest local defined equilibrium settings, to help maintain and preserve long term economic stability.
For the most part, the general equilibrium conditions of many nations have become too complex to respond well to ideas - economic or otherwise - which could readily be applied to a structural whole. Indeed, some even complain that there is a dearth of new ideas! Chances are, what's really lacking are suitable settings where new ideas could readily be tried with minimal repercussions if they don't work out. Governments need to give their citizens permission to conduct local small experiments via new economic platforms, instead of subjecting entire nations to economic experiments which are more likely to end up as social disasters. Plus, governments are increasingly exposed to competing factions which prefer different approaches to economic engagement. Why not try different approaches in small community settings, instead of attempting to impose a one size fits all economic pattern on a diverse citizenry?
While local versions of defined equilibrium would create boundaries for time based services coordination, these new communities would remain open to surrounding economies, especially for tradable sector activity and global ideas re infrastructure potential. Still, these communities would reject forms of non tradable sector rigidity which made debt burdens so intractable in the first place. Hopefully, new economic options for non tradable organizational capacity, might eventually lessen society's dependence on debt formation. Affordable building components and reciprocal symmetry in services generation, could give governments much needed possibilities for the problems of long term budgetary debt.
No comments:
Post a Comment