I read this morning that an economist (I am not promoting this guy by naming him) is warning that the economy faces an economic “death spiral” that could result in a depression so severe that he doesn’t “think our civilization could survive it.” He has a few other folks who support his views. They claim that they have seen a pattern that predicts imminent economic disaster– a pattern that everyone else has missed.
These kinds of shrill warnings pop up from time to time and have usually, as may very well be the case here, served as a way to gin up enthusiasm for the economist’s book and/or to lured scared investors into foolish investment schemes.
This kind of braying reminds me of the cults that have predicted the end of the world from time to time over the years. They too have seen things others have missed and they too know for a fact that disaster is imminent, until of course it isn’t. The funny thing is that even after the day the world was supposed to end has passed with the world, you know, not ending, many of the cult members continue to believe in the “prophecy,” albeit with some revisions as to timing. I suspect some people may just be primed to be frightened. From my perspective, if you want to be afraid, or even very afraid, go ahead. But do it because you are getting into a passenger car without putting on your seat belt as opposed to worrying about an economic death spiral.