Are we headed for recession (August 2019)?
I have been thinking quite a lot about the real economy and the financial economy. I draw a distinction between the vast majority of the citizens of the United States of America in the real economy -- they work and earn and save and spend -- and the financial economy. The real economy has household and business income. Citizens must have housing and items inside the home. They must have food and transportation and clothing and entertainment...the list is obvious because we are all part of this real economy. We earn. We borrow. We spend. We save. As you aggregate the real economy, real goods are produced and consumed either at home or abroad. Real supplies and materials ladder up into increasingly complex goods. Real work is done on infrastructure and real innovation and research occurs. This is different than the financial economy. The financial economy wishes to make money based upon the real work of others in the real economy. The financial ...