Breaking Vicious Cycles

Avoiding crises, combating secular stagnation and deterring international conflict require that much be done because we are far along in decay. Inclusive economic theory demonstrates that we can go much further, and are likely to, but even at this point we are beyond the place of a quick and easy turn-around. This is because we are in a vicious cycle in which emergency measures and inaction justified or not follow one upon another and prevent us from making longer term improvements. For example, we cannot lessen public or consumer debt because we cannot accept a period of transition in which total spending is lessened as debt is retired. Hence, emergency spending measures (so called stimulus) crowd out longer-term debt reduction. Debt keeps rising and the emergencies become more serious. The emergency action is piling on debt and bloating the money supply. The inaction is failing to exercise self-restraint…