And so the northern hemisphere had its shortest day of the year. In Baltimore, the sun never rose and never set. It was gray all day. Then it was night again.
Will 2012 be the year the human race goes into a downturn…a slump…a correction?
Time moves on. So do opinions.
2011 began with most people expecting a recovery. Now, they know; there’s something else going on. Something more complicated…something different from the typical recession/recovery pattern they’ve been used to.
It took 199,700 years for the human population to go from zero to 125 million. But over the next 250 years it added about 6 billion people. Every five years, approximately, it added the equivalent of the entire world’s population in 1750. “Progress” made it possible. People had much more to eat. Better sanitation. Better transportation (which eliminated famines, by making it possible to ship large quantities of food into areas where crops had failed). The last major famine in Western Europe occurred in the 18th century when crops failed. After that, the famines in the developed world at least have been intentional — caused largely by government policies.
By the late 20th century, people took progress and GDP growth for granted. Governments went into debt, depending on future growth to pull them out. So did corporations and households. Everyone counted on growth. Spending and tax policies were based on encouraging growth. The enormous growth in government itself was made possible by economic growth.
Read more: http://feedproxy.google.com/~r/dailyreckoning/~3/9M1hGfdOXdo/#ixzz1hbheyk2A