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'The economy will be just fine': No it won't

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Drink from this bath water, all of it, for this is the message from government economists. Just say the word, and your fate will be sealed. The WP Wonkbook says not to worry because the economy will be just fine. How do they know? The US Department of Commerce tells them so. Reading stuff like this from the Bureau of Economic Analysis is like driving into the glare from the sunset. It’s harsh; it’s beautiful; it’s blinding; eventually it’s dark. The fog of economics is often foggier in the near view. It is clearer in the rear view mirror. It fails to portend the future.

Fundamentally, an economy that is based on ever expanding demand from ever expanding populations, and that thrives on non replaceable and exceedingly disappearing resources will become entropic no matter what.

“In physics, an entropic force acting in a system is a phenomenological force resulting from the entire system's statistical tendency to increase its entropy, rather than from a particular underlying microscopic force.[1]”

http://en.wikipedia.org/wiki/Entropic_force

This analyst has written that the current American economic model based on capitalism is unsustainable. Economic prosperity belongs to a small number of people into which power and wealth resides. The gap between those who have and those who don’t is increasing at an alarming rate. The willingness of those with wealth to invest in expanding and sharing opportunity and wealth is diminishing. A sustainable economy is needed to accomplish the following:

  1. Create a more fair and equitable economic environment
  2. Increase social and environmental responsibility
  3. Infuse the economy with a renewable energy paradigm
  4. Create upward mobile opportunity from reengineering and renewing America through sustainable development
  5. Change and amend the economic rules and model

“National Income and Product Accounts

Gross Domestic Product: First Quarter 2014 (Second Estimate)

Corporate Profits: First Quarter 2014 (Preliminary Estimate)

Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- decreased at an annual rate of 1.0 percent in the first quarter according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.6 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, real GDP was estimated to have increased 0.1 percent. With this second estimate for the first quarter, the decline in private inventory investment was larger than previously estimated (see "Revisions" on page 3).

The decrease in real GDP in the first quarter primarily reflected negative contributions from private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment that were partly offset by a positive contribution from personal consumption expenditures. Imports, which are a subtraction in the calculation of GDP, increased.”

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

"Wonkbook: Don’t worry, the economy will be just fine
BY PUNEET KOLLIPARA
May 30 at 8:26 am"

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/05/30/wonkbook-dont-worry-the-economy-will-be-just-fine/

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