Updated: Jul 9, 2021
An economy with Economic Cancer - suffers from market failures in Strategic Sectors of the economy, which make the cost of growing the economy, catastrophically much more expensive than the value created from growing the economy
OR SAID ANOTHER WAY
An economy with Economic Cancer - makes money in a way that causes the cost of living and the cost of doing business, for the most important products and services in the economy (healthcare, housing, education, transportation, utilities, insurance, retirement, etc...) far, far, far too expensive for 80% of Americans, 250 million people, eventually bankrupting the entire economy for both the rich and the poor alike, in the next 3 - 5 years, if this broken way of making money in the economy is not fixed to work best for all Americans.
WHERE THE FOLLOWING IS TRUE IN AN ECONOMY THAT HAS ECONOMIC CANCER:
1. Strategic Sectors in Economy Include: Healthcare, Housing, Education, Transportation, Energy, Childcare, Insurance, Supply Chains, Retirement Savings
2. Products and services in Strategic Sectors of the economy are far, far, far too expensive for 80% of consumers in economy.
3. "Robust Consumer Consumption" of products and services in Strategic Sector of the economy are fundamentally uneconomic, but are artificially supported by catastrophically massive borrowing, financial engineering and government subsidies, which pay for excessively too high consumer price levels, which when purchased, further incentivizes the spread (Metastasis) of Economic Cancer across the economy.
4. "Robust Business Investment" in Strategic Sectors of the economy are fundamentally uneconomic and are artificially supported by catastrophically excessive borrowing, financial engineering and government subsidies for the explicit purposes of consolidating markets, destroying competition, allocating capital that maximize's rent on business product/service prices , controlling industry regulation and buying back stock - all for the purpose of maxing profit and shareholder value at the direct expense and financial destruction of the bottom 80% of income and wealth holders in the economy - Explains "PERFECTLY" why the "COST" of growing an economy that has Economic Cancer is so catastrophically much more expensive than the "REAL ECONOMIC VALUE" (PROFITS) created from growing the economy.......Real Economic Value created in the economy "IS NOT EQUAL TO" the Financial Value created in the Economy. The Financial Value created in an economy, "That has Economic Cancer", typically creates Financial Value that is 300% - 500% greater than the Real Economic Value created in the economy. This much higher Financial Value almost always flows directly to the top 10% of income and Wealth holder in the economy at the direct expense and financial destruction of the bottom 80%. It is precisely this incremental, uneconomic, Financial Value Added that is Cancerous and is destroying the real economy.
5. An economy with Economic Cancer, creates extreme economic imbalances in the economy - and therefore creates extreme values for fundamental market indicators of the economy: Example of Economic Indicators Showing Extreme Values: Inflation, Interest Rates, Debt Levels, Debt/GDP ratio, Credit Spreads, Home Prices, Auto Prices, Energy & Commodity Prices, Employment Labor Participation Rate, Velocity of Money, Current Account Deficit, Federal Budget Deficit, Unemployment Rate, Federal Reserve Asset Levels, Market Value of Those Assets vs. Purchase Price, Diversity of Asset Purchase Types vs Historical Purchase Types, Size of Federal Reserve Excess Reserves Relative to History.
6. An economy with Economic Cancer by definition cannot grow economically and requires excessive borrowing, financial engineering and government subsidies to finance uneconomic growth in the economy.
7. Ultimately, an economy with Economic Cancer will become insolvent, collapse or go bankrupt when the credit creating capacity of the economy reaches its limit and breaks, no longer able to support the effective economy wide Consumption and Investment Ponzi Scheme, caused by the Economic Cancer.
8. An economy looses its credit creating capacity when both the domestic and international holders of its currency no longer believe that the economy that prints that currency has the ability and willingness to create enough value in the economy to support the value of the currency, as evidenced by the economy's inability to prevent interest rates across the interest rate curve from structurally rising uncontrollable in an economy with Debt to GDP ratio >> 380%
9. Equation of an Economy with Economic Cancer: The cost of growing the economy is catastrophically much more expensive than the value created from growing the economy: GDP - C - G - I << 0, where: GDP = Gross Domestic Product; C = Consumer Consumption; G = Government Expenditures; I = Business Investment
An Economy with Economic Cancer is fundamentally uneconomic. It is an Economy that is not Right, not Truthful, and not Just. It is by definition Corrupt. It does not efficiently and effectively develop and allocate capital in the economy in a way that competitively and fairly provides all market participants the opportunity to maximize who they are and how they can maximally add value to themselves and others in the economy and society.
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