The Worlds Largest Pyramid Scheme (also known as ‘The World Economy’) is approaching its endgame.
Since The Wealth of Nations, economic theory has had a great run, peaking during the 20th century and morphing from describing the show, into becoming the show itself.
Even returning economic crises have not managed to shake its reputation, because it has been a successful predictor most of the time, and it does have its merits (no doubt).
But one factor, with tremendous economic impact, is glaringly overseen: The population explosion of the past century.
Never in the history of mankind has the economic growth been so high during a century, and never in the history of mankind has the world population growth been so high during a century.
Is there perhaps a connection somewhere?
If so, it’s scary: The population growth curve has peaked. Even so-called developing countries across the globe are seeing lower population growth rates as their women want higher standard of living by working, thus giving birth to fewer children.
Fewer children per family, is of course not scaring, it’s healthy. The scary part is that the world economy is designed as the ultimate pyramid scheme: The sheer population growth has been feeding the world economy (read: Dow Jones index) for the past 100 years. Whether or not these people could afford all the goods offered by the industrialized, it never the less contributed to the expectations of the CEOs, traders, economists and others that prognosticated based on this.
In the near future, however, Europe will enter population stagnation, even decline within a few decades. As more and more ‘developing’ countries around the world become ‘westernized’, their population growth will slow down significantly, too.
Just like pyramid schemes collapses completely when ever more idiots stop entering at the bottom level, the complete world economy will run out of this fuel soon. There is no smooth landing for that recession…
But then what? Do we start spending even more to ‘save’ the economy?
Can the planet handle 10 billion people consuming like the 2 billion in the western world are doing today? No, it can’t!
Doesn’t “spending will save the economy” just confirm that we are already screwed? Yes, it does!
So the world needs a new economy, and not like the dot.com-new-economy (which is a perfect example of the flaws in the present ‘pyramid scheme’ world economy). The world needs an economy that counters Wall Street’s greed, the west exploiting the third world, and above all; that does not need consumption-for-the-sake-of-consumption-for-the-sake-of-saving-it-from-crisis over and over again.
An economy not based on growth and consumption; is that even remotely possible, given the human nature?
Twenty years ago, the world’s biggest problem was overpopulation in the future. To economists, those were the days.