Showing posts from August, 2010

The problems with growth dependency

I've been trying to put my thoughts to words on this for a while as it relates to the current economic crisis.  Yet, before I do, I'll make two definitions and distinctions that I think are very important.

Free Market:  A system where individual make choices as to what products/services they wish to use and how much to pay and charge for products and services they make.Capitalism:  A system whereby economic growth is the target of society composed of fractional reserve banking and a dependency on moderate inflation.
I'm not saying what I describe above are the 'true' definitions of such terms if they even exist.  But for the purposes of this blog, that is what I mean when I talk about the free-market versus capitalism.

The problem we are facing now is a problem with capitalism.  Our entire society is dependent on growth.  Our pension system requires constant growth.  Our banks are dependent on ever growing debt and profit.  Our society expects people to constantly g…