The policy of the Status Quo since 2008 boils down to this assumption: if we prop up an artificial economy long enough, it will magically become real. This is an extraordinary assumption: that the process of artifice will result in artifice becoming real. This is the equivalent of a dysfunctional family presenting an artificial facade of happiness to the external world and expecting that fraud to conjure up real happiness. We all know it doesn't work that way; rather, the dysfunctional family that expends its resources supporting a phony facade is living a lie that only increases its instability.
U.S. economy is riddled with artifice: millions of people who recently
generated income from their labor have gamed the system and are now "disabled
for life." Millions more are living in a bank-enabled fantasy of free housing.
Millions more are living off borrowed money: student loans, money the government
has borrowed and dispensed as transfer payments, etc. Assets are artificially
propped up lest a banking sector with insufficient collateral be revealed as
structurally insolvent. It's not difficult to predict an eventual spike
of instability in such a system; the only difficulty is predicting the date of
the instability. Hiding a broken, dysfunctional economy behind a facade
of artifice and illusion can't fix what's broken, it only adds to the system's
systemic instability as resources that could have gone to actually fix things
are squandered on propping up phony facades of "growth" and "health."
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