Recessions, inflation, and ecology

comments on a Boston Globe article on inflation and recessions

The planet is in ecological collapse. The economy has been so financialized that the rich can make money without producing anything of value. So we have too much money chasing a diminishing supply of goods. Lumber is expensive,. We are also losing our forests. No forests, no wood, sky high lumber prices. For those who ask for more oil, oil prices are way too low for the damage that burning more oil costs. How many hurricanes and tornados do the folks in the south and midwest need to experience. And How much do the disasters cost and how much do they drive the cost of lumber to repair the housing?

the problem with financial news is that it is completely divorced from context. If ecosystems were being rpaired and our consumption was sustainable, we would not have the economic problems.

One last point. In a financialized economy recessions are not a bug, they are a feature. A feature designed to extract more from the poor and hand it to the rich.

Recessions and short term thinking

Comments on a Boston Globe article on the recession and short term thinking

The short term thinking in all this is rather troubling.  Yes growth is down compared to the economy of covid relief dollars, but that means it is down compared a a free money economy.  Not based on normal trends.   But what always seems missing from the discussion is the state of the planet that underlies all of the economy.  If high grade iron ore deposits are depleted, it costs more to mine iron.  If ships have to go further and further to catch fewer and fewer fish, it is both inflationary and diminished.  If hurricanes and floods cause more and more damage,…..  And we have an oil giant killing their neighbors to fulfill some sort of white christian nationalist fantasy of a greater Russia.

In other words the short term economy may disturb investors, but the long term economy, the one dependent upon healthy forests, clean air, clean water, healthy food, is in shambles and unlikely to ever come back as long as we persist in over exploitation, growing inequality,  and the financialization of everything.  

As much as it is a shock to some, economies run best when organized from the bottom up.  When those with the least are doing well, everyone else will too.  When the water is clean and the forests healthy, everyone is better off, including economically.  As long as the rich make decisions that only benefit thier own bank accounts, recessions are a feature, not a bug.