The Squandering of America, by Robert Kuttner

Adam Smith was an economist who coined the term; the invisible hand. The invisible hand of Adam Smith is supposed to reward efficient businesses and penalize inefficient ones. It should reward factories that produce items that are in demand, and thereby beneficial to society, and cause factories that produce items not in demand to fail. (Demand being a curve that meets with Supply at a point called Price.)

Thus, through the virtues of profit and loss we are to improve our country continuously; so goes the ideology.

Adam Smith was a political economist who lived from 1723 to 1790. He is the father of modern economics. He wrote The Wealth of Nations.

David Ricardo, 1772-1823, was a classical economist, like Adam Smith. He came up with the theory of comparative advantage. This theory explains why bicycle factories don’t waste their resources growing and selling potatoes. A farmer has that advantage. The potatoes from the bicycle factory would cost too much to grow. But, they are efficient enough to make a profit selling bicycles. The farmer would waste too much of his time trying to make one.

Robert Kuttner is someone I would classify as a post-modern economist. His book, The Squandering of America, is all about politics. But it is also about the economic ramifications of politics. He is showing how Adam Smith’s hand was forced, and how comparative advantages can be arranged for by the governments of nations that make having a manufacturing base a priority (for example). With politics a comparative advantage can be arranged for, if those in power want it.

Fostering a society where quality education is available, for example, functions outside the curves of demand and supply. This is a virtue a society adopts. More on that later.

Robert Kuttner exposes the strings moving the puppets. The reader becomes skeptical of tidy theories. An appreciation for messy theories grows.

Robert Kuttner explains the theory of diminished expectations whereby political apathy is an unintended consequence that pays dividends. In other words, voters don’t vote, except for the fringe on either end of the spectrum. Money talks, so the middle spectrum should shut up, please.

Our lowered standard of living is what is pressing, but, to quote California Senator, Barbara Boxer, it is off the table. (She was talking about a war, but, it is the same principle.)

The expression: The silence is deafening -comes to mind. What is not discussed in public is so telling. Economics; the calculus, is not discussed. Economics; the simple arithmetic, is. But this isn’t the economics that explains why Kennedy’s rising tide is now sinking the dinghies.

To quote Nietzsche; we should not be slaves to our virtues. We have to decide what a virtue is. If a society where quality education is available to all is a virtue, it would have to be adopted. But, this is a virtue that empowers fellow citizens to reshape society and function in it. (The definition of citizen comes to light.

If the paths always taken are the two curves that meet at price, then we are doomed. You need calculus to design something really great. Arithmetic should be relegated to counting beans.

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