You will see, if you click through the run-up to this year’s Davos, that the tone is high and the realism seems robust. The problem, as I see it, is that the market rationalization forced by competition means more poor at the margins, and more concentration of wealth (in scarce protected positions, through regulation). The consumer is too pushed by cost cutting to have any income, and the few who are rich want other products, such as ranches and golf courses, which drive prices higher. The mechanization of the economy (I mean is mathematical modeling – see the wonderful book Machine Dreams: how economics became a cyborg science by Mirowski) is the real driver, and interest in the poor, the environment, education, health, and broad political participation give way at every point to market logic, and the need for security systems to deal with the new malcontents. Joseph Tainter’s book, The Collapse of Complex Societies, says that societies, as they expand, spend an increasing percentage on infrastructure, such as transportation, jails, wars, and environmental remediation, until they go broke and collapse. The elites own the businesses that do the infrastructure and will hold on to their centrality in the economy, and their diminishing benefits, until they collapse. Jarad Diamond’s new book Collapse, lays out the logic of bad decisions and failure to notice what is going on. My guess is the tough financial advisers tell their clients, “It is falling apart, get what you can NOW so you can enclave yourselves.” Those who remain optimistic for the most part are those who run currently benefiting businesses. The others who are optimistic still have faith in human nature, education, art, science, and human compassion. The real question is, is there any real model besides that of market rationalization, with its winners and losers?

The Real Time Finals Blog

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India – Demolition of Shrine in Gujarat

Muslims who live in US lodge our very strong protest at the demolition of the 200 year old tomb of Sufi saint