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This sentiment coincides with the problem of measuring "the economy". The major notions we have inherited of economy derive from the rentier merchants of early modernity. They took to the idea of seeing a nation as a balance sheet, a tabulation of assets: men, ships, iron. From this idea we get the idea of putting more assets on the balance sheet through trade and colonization, rather than tribute. This lasted a few centuries, but by the point of transition to an industrial economy it had already become clear in the writings of Enlightenment philosphers that it was not quite as simple as possession and accounting of the raw assets, but their organization too. The gross product and employment figures we started using to measure organization generalized things, but also suffer from limited scope - if it's not a money transaction, if the work is unpaid, it's outside "the economy". In the long 19th century it was very straightforward to devise ways to purpose inventions towards economic benefit: take an existing trade, buy up more raw materials through the canals and rails, run it through the factory, sell more product. With the second industrial revolution, another "wave" of products appeared that substituted common uses of labor: canned food instead of fresh, telecommunication instead of express mail, and an increasing number of mechanized devices. It got much harder in the 20th century as more of the inventions relied on developing consumer habits and did not reflect a traditional trade. The dilemma was averted through marketing techniques: Everyone uses toothpaste and shampoo, watches the new television show, and desires a new car, a bigger house and a higher-paying job. Creative financing ideas took up the rest of the slack, allowing consumers to get their hands on the stuff and set lifestyle expectations that are higher than reasonable. So, by the early 21st century everyone simultaneously has too much "stuff", is unhappy because of the marketing, and is in debt because of the financing. But GDP is higher, so the system persists, up until now. That trend makes me think that "building" is at an end, and something more like the German system has to take hold. America's consumer economy is now developing a multitude of niches, marketed through various online storefronts, Kickstarters and viral video. Appreciation of the best stuff of past years has risen as more of that material surfaces online and rubs shoulders with "new" stuff. Where this emerging system struggles the most, it can usually be traced back to the old power structures and their large footprint on the economy. And to a great degree the measure of the economy is tied to those structures: growth and employment figures feed into the taxation and spending model. Change the measure and you have to realign what it means to tax or to spend, who is in debt to whom. It's not done so easily. |