The economy is out of balance, heavily weighted to a service sector, especially the financial sector which creates no new wealth, but merely transforms and transfers it. With stagnation in the median wage, and an historic imbalance in income distribution skewed to the top few percent, with the banks levying de facto taxation and inefficiency on the economy as a function of that income transfer, there should be little wonder that the growth of real GDP is sluggish in relation to new debt.
Or as Joe Klein so colorfully phrased it, the elite have been strip-mining the middle class in America for the past thirty years.
Great article from JESSE’S CAFÉ AMÉRICAIN on our unsustainable monetary and economic system. It brings to mind Joseph Tainter’s axiom that the collapse of a complex society occurs when the returns on a societies investment in complexity turn negative.