Economic Growth: The greatest Ponzi scheme of them all

Economic growth has all the earmarks of a Ponzi scheme. The detailed workings vary from place to place and change over time, but certain basic features of the scheme are noteworthy. Each succeeding generation pays into the scheme by undergoing a protracted period of costly education and training. When certified as skilled workers, the rising generation begins to receive ‘interest’ on its ‘investment’ in the form of wages derived from a job, and at the same time continues to contribute to the scheme.

0 Comments
Bread line Dayton
Bread line Dayton: Library of Congress

First the workers, then the retirees – victims of the cut-and-paste management of virtual organization

Across the nation, cities and states are watching Detroit's largest-ever municipal bankruptcy filing with great trepidation. Years of underfunded retirement promises to public sector workers, which helped lay Detroit low, could plunge them into a similar and terrifying financial hole. Thanks to a patchwork of accounting practices and rosy investment assumptions, it's not even clear just how big a financial hole many states and cities have dug for themselves.

0 Comments
Read more about the article Downside of virtual staffing
image by Zuza Ritt

Downside of virtual staffing

The state of Pennsylvania is killing a contract with IBM because, as of July, the project was $60 million over budget and a whopping 42 months behind schedule, state officials said. It was, by any measure, a huge and complex project. It was to give the state a new computer system to track employee wages, employer taxes and handle unemployment claims, appeals, payments.

0 Comments