Break it up and start again

Rural Rambling

The Merriam Webster definition of economics is “The academic study of the production, distribution, and consumption of goods and services.” Such a simple statement to describe something that affects us all. Economics has also been described as a science. I kind of baulk at that. There is a bewildering array of tools and theories applied to economics but while the hard number crunching works with science, the wild card, human behavior, never can. It may come close, but emotions and random behavior throw rationalisation out of the window.

Now to economies. Our own format is relatively new, post WWII I would venture. Before that the great mass of people had to fare for themselves and many, most even, didn’t live too long doing it.

There have been great economies over the years, so it’s said. The greatness that was Rome, largely based and run because of slavery. Ancient Egypt started out as a peasant-based economy and they were pretty good at trading. However, in latter years and under Roman and Greek influences, slavery again played a large role. Do we apply political correctness to the pyramids I wonder?

In Europe after the decline of the Roman Empire there was a feudal system, the few, including the church, ruling the many. Not quire slavery but serfdom, which I guess you could say was close to it. Businesses began to have more of a role from the 11th century onwards and cheap labour and yes, slaves played their part up to the 1860s and arguably beyond.

Wars, in my opinion, played a vital role in economic activity and, I think still will and do. Global destruction can be great for business. The millions that die and are maimed. Collateral damage?

There is still slavery in the world today. Modern slavery is estimated to be 40 million people. More than the entire population of Canada. It may be more. How do you put hard numbers on a secretive activity? There is still cheap labour. Now, it’s spun under the label “the gig economy.” Low pay, little or no rights and maybe even less prospects. A return to Victorian values perhaps? Another boom time.

The difference today is that the working class, I won’t say middle class, because I believe that anyone and everyone who works is working class, are also consumers and vital to keeping economies going. If they’re not spending and borrowing to spend then the whole house of cards will come crashing down.

The higher wage costs go the more the drive to robotic workers will pick up. There are trillions of dollars in this game. It will come. It is coming. Sooner than you may think. I don’t believe that any job will not be affected in some way or more likely gone for good. That could leave billions of unemployed consumers without the means to consume. Oh no. What next? Another war? Break it up and start again? Boom times for those that are left. Oh my, I am cynical today.