Role of Wages of the Common Worker in Oil Prices, Collapse
In their book Secular Cycles, Peter Turchin and Surgey Nefedof point out the important role falling wages of the common workers played in early collapses. I got to thinking that this might be an issue with our current situation as well, including the low level of oil prices.
I explain this in two presentations. The first one is called “Overview of a Networked Economy“. The second one is called, “Economic Growth and Diminishing Returns.”
A couple of (amateurish) slides that need explanation are the following ones:
The cloud above my representation of the economy is supposed to represent the cloud of goods and services that the economy makes. Many people would like us to believe that as long as this cloud is growing, everything is fine.
What Peter Turchin discovered is that there is a smaller cloud that really needs to be growing, as well.
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