“21st Century Bubble Gum Wont Stick!”

I’ve been brainstorming all of the possible microeconomic subjects that I could blog about, and I’ve come to one conclusion… There is way too much to content to write about any microeconomic issue with any meaningful impact.  Most of the advancements in economic studies have come from the macroeconomic cause and effect relationships. Fore example, Vernon Smiths experiment with producer and consumer price equilibrium convergence over time.  This experiment is relevant and a useful discovery.  Without the resources, or the time to run a full economic experiment, combined with the fact that the good lord hasn’t gifted me with any brain blasting epiphanies regarding insight into the enormous army of cause and effect relationships that go into mass group economics, I have chosen to take a more philosophical look at economics, and human nature as a whole.  I do believe I have a hold of an Elephant trunk. If it is not an Elephant?... Then I do not want to know what I have a hold of.

Why recently, and I mean recently in the historical context, are we exhibiting a fundamental divergence from the concept of natural selection?  This force applied to economics is even more amplified and poignant, and may I say more easily provable, than when it is applied to the biological sciences.  Just as sports are “life amplified”, so too economics could be seen as natural selection amplified. It seems to me that all economic phenomena could be associated with the conformity or opposition to natural economic selection. 

 Political interference into economic issues in the form of policies and laws predominantly are manifested from the origin of political self-interest and survival. In my opinion, 99% of the time these policies are counter to economic natural selection. 

I can’t help but think that these economic bubbles that we been seeing in the last 10 to 15 years have something to do with the policies implemented to help sustain economic ideas that were rooted good intended but faulty economic thought. We are seeing possibly the end of Social Security within the next 30 years, and our health care system is expanding out of control, and infringing on our constitutional rights. Both of these entitlements were developed counter to the common sense of natural economic selection. Natural economic selection says that there must be a number of failures, or if you go more biologically, you might say a number of deaths. Life has been difficult from the beginning of time.  One thing I have noticed in my short time on this planet, is that when prosperity, and expansion approaches it’s end, there seems to be a massive increase in the collective personal ego in an attempt to compensate for the reality of a life less decadent. Take for example the sociology of the Roman Empire before the fall. 

There will be periods of prosperity, and periods of despair. In my opinion, we need the former just as much as the latter. Without the downturn in economics we forgo the refinement needed to sustain the next period of economic prosperity. The more we try to tweak the system to our advantage, to prolong our prosperity, the deeper and more dynamic the freefall will be. This is life in a bubble… POP!

By: Michael Victors