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23 Minutes, 25 Slides
Gordon T Long and Charles Hugh Smith raise and debate seven key notions, that along with unsound money, are central to the understanding of the structural economic problems facing the globe today.
The world is being brutally impacted by a slowing rate of growth in jobs and is now showing the attributes of having passed peak job growth. Innovation advances today are dominantly technology centric, which are normally significant productivity improvements. This is feeding what Gordon T Long refers to as the Productivity Process Paradox. The faster the technology advancement, the faster and greater is Schumpeter's Creative Destruction.
The Productivity Process Paradox comes as nearly 2 billion of the globes 7 billion people have been freed by communist regimes to pursue a higher standard of living. The advent of global labor arbitrage, coupled with massive advances in productivity improving technology, is leaving high paying job growth a serious casualty. These advances are crippling middle class incomes in developed economies while emerging economies are expanding their middle class. The surprising result is a net reduction which is reflected in a shrinking real global GDP (NOTE: presently real global GDP growth is disguised because it does not use a deflator that properly reflects actual inflation rates).
Both particpants fully agree that they raise more questions than they answer, but hope to explore all the notions durng future videos.