Hughesair (Inflection Point)

Retired physician and air taxi operator, science writer and part time assistant professor, these editorials cover a wide range of topics. Mostly non political, mostly true, I write more from experience than from research and more from science than convention. Subjects cover medicine, Alaska aviation, economics, technology and an occasional book review. The Floatplane book is out there. I am currently working on Hippocrates a History of Medicine and Globalism. Enjoy!

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Monday, December 28, 2020

Sectoral Balances

Sectoral balance macroeconomic equation, Godley & Cripps

 

Where S represents demand side savings

m:  imports

x: exports

I: supply side investments

g: government spending

t: treasury revenue

 

Trade deficit (m-x), stock market investment (I) in Chinese corporations, shadow banking and immigrat transfer of earnings back to families left behind all lead to a drain on liquidity and wealth away from internal American markets, demand side wealth and liquidity. While this loss imposes an every day sad reality to working America a growing wealthy class of international elites living on the supply side of the equation prospers in blissful denial. As direct beneficiaries of globalization the globalist elite look the other way.

 

A graphic representation of Capital displacement and its consequences might suggest:

 

Globalization                                       leads to                        Capital divergence

Democracy                                          devolves into               Oligarchy

Freedom                                              gives way to                 Idealogical subversion

Internationalism                                   evolves into                  Communism

Equality                                                turns into                      Dystopia         

Middle/Working class                           Looses to.                    Cheap foreign labor

US Manufacturing might                       Underwrites                 Chinese growth and military 



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