Every once in a while, some personality who has little sense other than a basic understanding of economics gives a rationale that is so absolutely appalling, that it requires one to filter out everything they say after that point.
Maria Bartiromo is one such person after her tirade on Tech Ticker.
She says “I don’t think there’s anything wrong with boom-bust economies, personally.”
Well, Maria, if I have to tell you, I’m sure you’ll have little understanding of it.
From a technical STRICTLY ECONOMICS perspective, she may be right. Bubbles, which are primarily made of excesses, produce something of substantial value to many over the medium or longer run. Unfortunately, you can’t feed your families, clothe them, or tell them bedtime stories with economic growth. The fundamental mismatch between Ms. Bartiromo’s understanding of how the world works in economics and GDP growth with boots-on-the-ground economic realities of individuals is fundamentally flawed. You see, this is about HUMAN SUFFERING, not about a few percentage points of output. You see, happiness is not measured in economics by the average, but rather by the disparity.
In fact, consider the tale of 2 countries
Consider Country A, whose GDP is $1Trillion, but 95% of that goes to 1 single person with the remainder shared among the the rest of society who lives in abject poverty compared with Country B with an equal number of people with only $800Billion GDP shared almost equally with a large and stable middle class. Would you say there is more human suffering in Country A or Country B? It’s clear that while these are caricatures of economies, I can’t imagine anyone concluding that people in country A are happier with a higher GDP per capita than Country B. It’s all about access to opportunity and a level playing field. We are looking less and less like B and more and more like A.
You see, Ms. Bartiromo, it’s not about the level of economic output, it’s about economic inequality. If there is any morality in the world (and I believe there is), it should be to provide opportunity for ALL to build wealth. This isn’t about socialism or capitalism, there is sufficient abundance in this world for ALL to have an excellent quality of life, excellent education, and access to redress for harm. Unfortunately, the middle class has been under assail for too long in this country. Economic equality equals more political stability, and the key to economic equality is protection for the poor, and limits for the rich.
Her galling out-of-touchness with America is appalling. It’s the modern-day equivalent of Marie Antoinette’s famous “if they have not bread, let them eat cake”.
