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Global Blues
The Death of the Blue Model Isn’t Just a First World Problem
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  • Anthony

    “…but it forms the backbone of post-war American prosperity. Its death poses a challenge to the liberal order in ways that most people haven’t fully grasped. Finding its replacement…should be the primary goal of responsible individuals, governments, NGOs, and companies around the world.”

    Perhaps, WRM, the responsible individuals, governments, etc. you reference ought to responsibly think about a central contradiction of capitalism (r > g) when dealing with reality and considering replacement/changes – economic and political changes are inextricably intertwined.

    “The overall conclusion of this study is that a market economy based on private property, if left to itself, contains powerful forces of convergence, associated in particular with the diffusion of knowledge and skills; but it also contains powerful forces of divergence, which are potentially threatening to democratic societies and to the values of social justice on which they are based. The principal destabilizing force has to do with the fact that the private rate of return on capital, r, can be significantly higher for long periods of time than the rate of growth of income and output, g.” (Thomas Piketty)

    • White Knight Leo

      I’d suggest you read some of the criticisms, including line-by-line takedowns, of Piketty’s book.

      • Anthony

        An important and contentious tome (for some) will have criticisms; from inception, economists and others have interjected their thoughts; I’m familiar with a few. Thanks.

    • Andrew Allison

      Piketty has been shown, by many, to be either an ideologue or a blithering idiot. He and Varoufakis (the last two syllables of whose name should be appended to Piketty’s) are cut from the same (socialist) cloth.

      • Anthony

        You can’t help yourself.

  • Andrew Allison

    US home ownership is 38th world-wide, behind Europe and many Asian countries. The Industrial Revolution, which arguably kicked off the economic development that made the middle class possible, began in Europe and was relatively slow to come to the USA. Once it did, of course, it took off like the proverbial rocket. I’m not a historian, but it appears to me that the Blue Model as currently understood was born during the presidency of Teddy Roosevelt and significantly developed by Woodrow Wilson.

    • Stacy Garvey

      What’s your source for US home ownership rate at 38th world-wide? I sincerely doubt this figure. The US has historically been in the top 5 for decades.

  • Stacy Garvey

    The blue social model was always doomed because democracy as a spoils system was always part of the equation. When politicians figure out they can get money, power and influence by carving up constituencies and legislating preferential treatment, setting one group of citizen against another – they do it. Our only real solution is a more limited government, constrained by an expanded Bill of Rights. That’s not gonna happen because the population has gotten used to their separate buckets and are truly and permanently divided by race, class, socio-economic, and region. Our elites, our masters, the organs used to form public opinion, and public opinion is the only thing that matters in a democracy, will not give up their power to manipulate, massage, skim, and instruct (for a fee) freely. Sorry, folks, it’s a slow grind to secession from here. Can you imagine the red states agreeing to bail out blue state public sector unions? Can you imagine blue state agreeing to costly military interventions after the next recession hits and our state and municipal bonds go to shit? No? Me neither.

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