This was shared by a reader and I thought it was too fantastic not to post.
Over the last 2 decades Washington DC, always a little full of itself, has embraced the role of Imperial City. DC is by far the wealthiest region in the USA. From the Blue Ridge Mountains east to the Chesapeake Bay, from the suburbs of Baltimore south to Fredericksburg Virginia, it is a vast swathe of repurposed taxpayer dollars.
Piketty rose out of nowhere like a rocket, propelled by the Obama administration and an #oldmedia which loved the narrative the French professor was selling.
In the last couple of weeks however, as people have read the book, the gravity of peer review has started to bring the rocket down nearly as fast as it went up.
The EU is trying to scare money into risk assets. It may just take the money. I guess folks should have listened to Nigel Farage last year.
If one wants to get paid and one is OK with suckling at the teet of the American taxpayer, DC is the place to do it. It is the capital from The Hunger Games movie. It is here that the wealth of our nation is aggregated. The hinterlands pay their tribute to the massive bureautropolis which straddles the Beltway and stretches into the countryside of Virginia and Maryland.
In the opinion of many in Washington, you the American citizens, exist to support them.
The DC political class engages in gossip and intrigue and concerns itself with fashion and parties. It is “This Town.” Meanwhile things continue to get more and more real for the citizens in the hinterlands where the economy continues to slowly go out like a mid moon tide.
I guess chasing all the capital out of the country wasn’t such a good idea. Those 6 weeks of government mandated vacation sure were good while they lasted.
In an article entitled Washington, DC, The Land of the Well Educated Rent Seeker, I say that Washington, DC reminds me a lot of the gleaming capital in The Hunger Games movie.
It is not news that President Obama does not understand economics. Nor is he alone in not understanding the role of profits in an economy. But anyone who wants more employment will want to maximize profits. Profits are a leading indicator for employment. If businesses are making more profits, they will have the money to pay workers, give raises, and above all hire new workers. Moreover the profits will give the businesses an incentive to do all these things.