The economy of mass prosperity
“After proposing $1 trillion investment into infrastructure, the Trump administration is harnessing the brainpower of renowned experts to unlock the insoluble problem of how many jobs will be created for each billion dollars of spending. While stressing the obvious, the administration is missing the important point.
The purpose of capitalism is not job creation. The purpose of the capitalist economy is to create wealth. Employment and the subsequent distribution of the spoils of an economy are byproducts of capitalism.
Since its inception, capitalism has been in a perpetual state of evolution, from the Industrial Revolution that ignited an economy of mass production to the economy of mass productivity to, most recently, the economy of mass consumption. Each subsequent phase of capitalism has been associated with innovation, rise of productivity, and the immense creation of wealth.
Our current economic period was fueled by a huge expansion of credit, which temporarily has taken the economy beyond its limits. Through excessive borrowing, consumers have spent far more than they can afford, and the expansion of social programs and futile attempts to stimulate the economy via government spending have left the country with $20 trillion of debt. At this point the consumer is broke, the country is broke, and the economy of mass consumption is on a respirator and cannot be resuscitated by further spending. If not the spending, what then, is the catalyst that will take capitalism to its next phase of evolution?