When I had entered the workforce about a decade or so ago, to me economics translated to a simple formula: Supply and demand dictates prices and capitalism took care of the rest. Then the great recession happened in 2008, which Ben Bernanke called the worst in global history and everything turned over its head. Suddenly, the monitory policies, fiscal policies, risk traps, toxic assets, too big to fail, herd mentality, Pavlovian conditioning, quantitative easing and micro/macro-economic(s) all came under the microscope.
I had become a first time home buyer during the housing bubble and saw the value plummet when the bubble burst. As the economy contracted it had a ripple effect, a few highlights of which are:
- Lehman Brother going bankrupt with $619 Billion in debt
- Bear Stearns beig taken over by J.P. Morgan Chase
- Bank Of America was forced by Federal Reserve to takeover Merrill Lynch.
As all these thoughts are rushing through my head, I am reminded of what Dr. John Komlos dubbed, “Capitalism with a human face”. Unlike the neo-classical economists who target the Wall Street, Dr. Komlos is an advocate for the main street. His ideas, shared by many other economists, preach the concepts such as:
- Wealth redistribution - raise the minimum wage.
- Keynesian framework by, having governments spend during downtimes and save during upticks.
- Stop unscrupulous spending and consumption.
- Ensuring sustainability of natural resources for future generations and last but not least:
- Halt the beast of “Instant Gratification”.
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