Once again, the elites are confounded. They don’t understand why the economy isn’t performing very well. And it leads them to pay attention to the wrong things.
I’ve written multiple times that the underlying problem is that people don’t have work and they don’t have work that pays decent wages. That seems so simple: you can’t buy stuff if you don’t have a job or have a job that doesn’t pay the bills.
And when they don’t get that, the elites pay attention to the wrong thing:
As global leaders sounded the alarm about a slowing world economy, a more immediate concern drew the attention of policy makers at the International Monetary Fund’s semiannual meetings last week: inflated asset prices and increasing levels of debt overseas.
Bond markets in the eurozone are booming, debt in China is at historic highs and the United States stock market, even with its sharp fall last week, has been on a tear.
As economists and politicians heap pressure on global central banks to continue, and even escalate, their unusually loose monetary policies in order to spur global demand, the fear that these measures could provoke another market convulsion is spreading.
And you can see it coming: a noisier call from some to lower debt and cut spending. Which will have the opposite effect of helping millions of people.
Or maybe that’s the point.