Old saying

Wolf has been discussing and expertly graphing the boom and bust cycle. The central banks have finally reversed their boom-machine after 14 fucking years of insanity.

Today he notes that the supply chain is starting to loosen up. It’s just the old saying, High prices are the cure for high prices. … But the saying only works when the central banks are not completely blocking all natural economic feedback with endless counterfeiting of fake numbers.

I must admit that I’m genuinely shocked by the bank turnaround. I didn’t think they would ever stop counterfeiting. Positive feedback loops are hugely addictive and rarely stop before a total explosion.

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Semi-relevant: Blockworks Macro is a pretty good econ channel on Youtube, with the same flavor as Wolf. The name sounds like a pure bitcoin booster, but in fact the channel has a wide range of interviews from a wide range of perspectives. There are a few ‘coiners’ in the mix plus a lot of real experts who speak from real experience and reach real conclusions. The interviewer knows how to bring abstracters back down to earth.

Conditions for an experiment

I’ll call this my year-end shit for 2021, since I can’t think of anything remotely positive to say about this year. Even my own production of graphics and writing was low this year. I’m weary and tired.

Let’s return to the oldest constant theme of this blog: Social Economics.

SocEcon companies treat workers like valuable property, not like valueless meat objects. Maintain them, train them, don’t overstrain them.

Obviously we need to bring it back. We need a new Henry Ford.

Henry was actually a latecomer to Social Economics. Many companies making delicate or complex devices had figured it out in 1890. NCR laid out the idea. Weston Instruments, Elgin watches, Jones and Lamson lathes, and dozens of others were practicing the principle before Henry picked it up. I’m using Henry as the icon because he made SocEcon famous and influential.

Henry was not a nice guy. He had some OCD/psychopath tendencies, but didn’t seem to have a burning need to destroy and kill the world. He certainly didn’t care deeply about the souls of his workers. Nevertheless, he tried running his factory both ways, and LISTENED TO THE RESULT OF THE EXPERIMENT. His profit was greater when he treated workers like valuable property. When his workers were maintained, trained, and unstrained, they provided better quality and stayed on the job longer.

The best SocEcon companies (like Conoco) maintained the entire city, not just their workers. They created a beautiful and pleasant place to LIVE when the workers weren’t on the job.

Unions provided a counterbalance that helped to spread SocEcon. Companies that treated their workers as valuable capital found that the workers were not attracted to unions.

This year’s informal mass strike creates the conditions for a new experiment. We no longer have unions, but WFH (or the Chinese version, ‘Lying Flat’) is the counterforce now.

A manager who wants to keep workers in the office should turn the office into a SANCTUARY from all insane mandates. No muzzles, no needles, no lucite, no distancing, no diversity, no sensitivity. Just get the fucking job done with maximum quality.

Will anyone try it?