The Personified, Optimistic Economy
Liveliness and Prosperity
Like the heart pushing blood around the body, the heart of an economy has to do that with money.
Where is the heart of the economy located? It's at the heart of a nation. The central, federal government is responsible for keeping money flowing throughout the nation.
For example, to keep the blood of the economy (money) flowing, the government in Washington DC must pump more of it into the economy and push the money to the four corners of the nation.
It doesn't seem right that the government should wield such power over the economy.
What's Optimism Got to Do With It?
It has a lot to do with the recession. It's anyone's guess. What's an "economist" anyway? He's someone interested in finance but lacks the personality to be an accountant. As a philosopher, however, he excels.
Understanding recession isn't the same as knowing how to end it. In the 1990's, the tech revolution was great. But it ended in 2001. What happened was a recession. Those who bought their homes when they worked in one of the many Silicon Valleys, however, got long-term loans based on short-term jobs.
By 2008 they couldn't keep up their mortgage payments. After the 2008 crash, the Obama administration searched for a way to repair the economy.
By 2010 it looked good again. But by 2015, another recession came as investors started losing again. It's not the mortgage failure as in 2008 or a sudden stop of a bubble boom as in 2001.
The problem is that there's a common element to all recessionary periods. Investors get giddy and too optimistic.
In 2001 they thought tech growth would be infinite. In 2008, people saw that the 10-year tech expansion of the Nineties couldn't support a 30-year mortgage. In 2015, the 5 years of enthusiastic dividend and capital gain activity came to an end.
Labor, and management, realize that those 5 years (2010 through 2014) were a "bubble" of optimism too because they were based only on trading frenzy and not true, substantial production of valuable goods and services.
Investors were overpaid dividends and gains from 2010 through 2014. In 2015, the unjustified payments started to be subtracted from their portfolios.
In the future, there will be a chance to stop the disheartening cycle of recessions, unfounded optimism, and fantasy speculation. For a time, investors will have to settle for smaller gains. Big gains, as in 2010 through 2014, can't be justified on energetic stock trading alone. Without labor and production, gains and dividends never are justified.