To Make America Great Again, Start Here

Our status quo is so thoroughly corrupt that it's no longer even seen as corruption, it's just BAU--business as usual.

It's a big ask, but let's depoliticize the phrase "make America great again" and consider what this would actually entail, not as a lobbyists' grab-bag of tax breaks for the wealthy and arcane giveaways in 500-page Congressional bills, but as a restoration of the fundamental foundations of greatness.

In the conventional contexts of the current era, this boils down to ideology and finance. If we dial back culture-war over-reach and free up "market forces," for example, this will restore America's greatness.

The problem with all this kind of thinking is it's superficial and banal, for it ignores the real source of America's decline: the moral rot that has eroded every institution and every nook and cranny of our society. Whenever I mention this moral rot, I get immediate push-back of this sort: corruption has always been around, so today is no different from previous eras.

While it's self-evident that self-interest and greed manifest as corruption, it's not true that the systemic corruption of the present is no different from previous eras--it's worse, much worse because it's now normalized, and so we accept the most outrageous forms of corruption as "normal."

So private equity buys a company, loads it with debt, transfers all the borrowed cash to the private equity "owners," and then leaves the company a sinking hulk that soon declares bankruptcy. Or when private equity snaps up hospitals and healthcare clinics and prices rise not for better service but to "reward the owners," this plundering of "healthcare" is just good solid MBA-school maximization of shareholder value.

What few seem to notice is the barriers that limited the pillage and plundering of the private and public-sectors have all eroded or been hollowed out. The legal framework is now a mirror-image of the financial sector, a series of facades that mask the pillage and plundering: of course it's profitable, but it's also legal.

The social barriers have also been dismantled. There are no taboos left, as "anything goes" is the modern zeitgeist. The notion that corporations have a social responsibility to the community they're embedded in is now a quaint whiff of nostalgia, along with the notion that corporations have an implicit responsibility to serve the larger national interests as well as "shareholder value."

Every institution has been hollowed out by self-service. Is it any wonder than younger generations have near-zero trust in institutions, given that their PR veneer of "public service" is just a cover for milking the system for private gain?

If you read histories of capitalism--for example, Fernand Braudel's three-volume Civilization and Capitalism, 15th-18th Century ( Volume 1, Volume 2, Volume 3) you discover that "capitalism" only functions as advertised if it is embedded in a moral order, something Adam Smith understood.

In early European capitalism, Christianity (Catholic and Protestant) provided this moral order. In China, Confucianism provided the moral foundation of the society and the economic - political structures.

Consider Xi Jinping's campaign to unify Confucianism and Marxism. This is not an anachronism, it reflects Xi's understanding that Marxism does not provide the moral foundation needed to limit the corruption undermining China. Only restoring a Confucian moral order can do that.

I explored this in some depth in this essay Pieces of the China Puzzle (April 27, 2024).

Here is an excerpt:

As the author noted, "his attempted synthesis of Marx and Confucius has prompted bafflement, even mockery, among observers outside and inside China."

To me, there is nothing baffling in this synthesis; it not only makes perfect sense, it can be understood as essential in the broader context of China's history and culture.

If we truly want to make America great again, as opposed to using the slogan as cover for more grift and graft, then we have to start by recognizing the moral sinkhole we're in. Institutions, the government and corporations have all lost our trust because they're all cesspools of self-serving corruption.



No, this is not "normal" or "the way it's always been." Those are the excuses we deploy to avoid facing the truth: our status quo is so thoroughly corrupt that it's no longer even seen as corruption, it's just BAU--business as usual.

There will be consequences, for a society that lacks a moral foundation is a society shorn of value, a society of fakery, PR and narrative control designed to mask maximizing my gain regardless of consequences pillage and plunder.

When a hard rain finally falls, it will surprise us, for in our grandiosity and hubris, we imagined we were gods, immune to the fatal consequences of our corruption.


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Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $3.95, print $12, audiobook) Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free


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America's "Healthcare" System Is Now a Structured Financial Skim/Scam

"Healthcare" grift, graft, fraud and financialized skims / scams will bankrupt the nation.

I've been writing about America's healthcare system for 18 years, emphasizing two enduring themes: 1) our lifestyle is unhealthy, with predictable consequences and 2) healthcare as it is currently configured will bankrupt the nation all by itself.

This recent article on how having a baby without complications now costs over $44,000 adds a third theme: the tragi-comic insanity and absurdity of the "healthcare" system that has been normalized, as if this is the only possible way to organize healthcare:

"And They Wonder Why The Birth Rate Is Declining": A Mother Went Viral For Revealing The Costs Of Being Pregnant In America:

Lastly, Kayla reveals that her baby received a bill, too, which added up to $12,761.30 without insurance. For their family of five now, the cost of insurance per month is $2,500 -- a nearly $400 increase from when they were just a family of four. "We're still waiting for him to process on our insurance," she explains, "so, for now, this is the cost without it."

One user said, "America's healthcare system is a joke... how does the newborn have a $12k bill?"

It's more than a joke--it's travesty of a mockery of a sham of a system that actually improves health. There's an even darker side of the picture--the takeover of the system by financiers and fraudsters--which truth be told is a redundancy.

We can now add a fourth theme: stripped of purposeful opacity, America's "healthcare" system is nothing more than a structured financial skim/scam. Before we dig into that, here are a few of the dozens of posts I've written on "healthcare" since 2008:

U.S. Lifestyle + "Healthcare" = Bankruptcy (June 19, 2008)

The "Impossible" Healthcare Solution: Go Back to Cash (July 29, 2009)

Why "Healthcare Reform" Is Not Reform, Part II (December 29, 2009)

Sickcare Will Bankrupt the Nation--And Soon (March 21, 2011)

How Healthcare Became Sickcare (March 18, 2022)

Let's start with what childbirth cost back when healthcare was paid in cash. Here are the costs of childbirth in 1952 at one of the finest hospitals on the West Coast, The Santa Monica Hospital: $30:



According to the BLS Inflation Calculator, $1 in 1952 is $12.13 today, so adjusted for inflation, the $30 fee to deliver a baby would be $363 today. Here are maternity rates from 1952:



A private room was $19, or $230 in today's currency. OK, so we have fancier equipment now, more staff, etc., but really--does that explain what once cost less than $1,000 in today's money--paid in cash, no insurance--now costs $44,000? No. Here's why: structured financial skims/scams.

Dutch Rojas (@DutchRojas) is a go-to source for explaining the opaque way "healthcare" skims / scams siphon off hundreds of billions of taxpayer dollars. Consider these X posts:

Why is healthcare expensive?
You go to your doctor.
Same building, same service.
But now it's 3x the price, because they sold to a health system.

The secret?
A "facility fee" was added.
Medicare and commercial payers just hand it over.

It's not for better care.
It's for ownership.

Every consolidation deal is a bet against the patient and you're footing the bill.

And the politicians love every bit of it...

Provider Taxes: The Most Elegant Grift in American Healthcare
It's not a tax.

It's a laundering operation.

Here's how it works:

North Carolina's 'nonprofit' health systems are running a $40+ billion hedge fund operation disguised as healthcare.
They're extracting hundreds of millions in tax exemptions while paying CEOs tens of millions.

This is the largest wealth transfer scheme in the American healthcare system.

This doesn't even include outright Medicare/Medicaid fraud, overbilling, unnecessary tests, medications and procedures, and a nearly endless menu of other enrichment schemes passed off as "care." These billions go to the "owners," not the frontline healthcare providers / workers.

Lastly, let's consider a few charts. Here is my 2008 diagram of the building blocks of an unhealthy lifestyle:



The cost of insurance continues rising, becoming ever more burdensome and ever more unaffordable:



Yes, the number of retirees is expanding, but this parabolic rise in Medicare costs far exceeds the rise in the number of retirees.



The same can be said of Medicaid.



"Healthcare" grift, graft, fraud and financialized skims / scams will bankrupt the nation. Thanks to the purposeful opacity of the complex funding streams, we can't even figure out what is actually "care" and what's just another skim / scam.

Our starting point should always be: this is not the only way we could organize "healthcare." We could have a rational, transparent, competitive and affordable system. But to get that, we first have to completely dismantle the current system, and everyone skimming billions will fight with all their billions in campaign contributions to stop that from ever happening. As a result, the nation will be bankrupted by greed.

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Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $3.95, print $12, audiobook) Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

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The No-Win Bubble "Wealth Effect": Either Way We Lose

Spoiler alert: this ends badly.

I have endeavored to explain how our economy has changed dramatically over the past 50 years beneath the surface. Nothing that's going to happen in the future will make sense unless we understand this, so refill your beverage of choice and let's go through what changed.

Wages gained ground 1945 - 1975, and lost ground 1975 - 2025. In the "glorious 30" (Trente Glorieuses) years of sustained global growth 1945 - 1975, wages' share of the economy remained around 50% of the nation's income. As the economy expanded, wages increased in step with the economy.

Since the mid-1970s, that trend has reversed. Wages have lost ground for the past 50 years. As the economy expanded, wages' share declined, meaning the economy's gains flowed to capital rather than wages. (Chart #1 below)

This wealth transfer was non-trivial: $150 trillion was siphoned from wages to owners of capital.

As the chart below shows, Federal debt as a percentage of GDP declined in the the decades of organic growth, meaning the economy expanded from increases in productivity, efficiencies and resource extraction, as opposed to the synthetic growth of using debt / financialization to boost consumption.

Financialization took off in the 1980s as unlimited credit for financiers enabled a synthetic boom of corporate takeovers and mergers. Financialization expanded into every nook and cranny of the economy in the 1990s and 2000s, so that assets such as the family home became commoditized assets that could be sold as securities to global capital.

As the Federal-debt-GDP charts illustrates, Federal debt rose faster than GDP as financialization hollowed out the US economy. The acceleration of globalization from 2001 advanced this hollowing out.

The destabilizing nature of financialization manifested in 2008 as the Global Financial Crisis, when heavily financialized subprime mortgage securities catalyzed a global meltdown.

the 2008-09 crisis and response was a critical juncture in American history , as the organic economy became subservient to the synthetic economy of debt, bubbles and "the wealth effect," the toxic harvest of hyper-financialization and hyper-globalization.

Federal debt, which has risen from 40% of GDP in the early 1980s to 60% in 2007, exploded higher to 120% as the synthetic "growth" of using debt to inflate asset bubbles that generated "the wealth effect" became the engine of consumption.

As a result of policy decisions made in 2008-2010, our economy became dependent not on wages but on "the wealth effect" for consumption: as asset valuations bubble higher, the owners of the assets feel wealthier, and are incentivized to borrow and spend more of their phantom wealth.

The top 10% of US households now account for 49.7% of all US consumer spending: The U.S. Economy Depends More Than Ever on Rich People: The highest-earning 10% of Americans have increased their spending far beyond inflation. Everyone else hasn't. (WSJ.com)

The problem is that unlike wages, which are broadly distributed, asset ownership is concentrated in the top 10% of households, so "the wealth effect" dramatically boosted wealth and income inequality. So all the synthetic "growth" since 2009 has flowed to the top tier of households as wages' share of the nation's income continued losing ground.

This sets up a can't win scenario: if the Everything Bubble that drives "the wealth effect" continues inflating, wealth inequality will crack our society wide open. If the bubble pops, consumption implodes, jobs will be lost and the Great Recession that was pushed forward in 2009 will kick in with a vengeance.

Beneath the superficial surface of rising GDP, the policies of inflating debt-bubbles to drive "the wealth effect" have hollowed out not just the economy but society. Courtesy of @econimica (X/Twitter), these charts show the pernicious consequences of relying on debt for consumption and channeling gains to the owners of assets.

The net effect was to load younger generations with debt while funneling the majority of Federal spending to the older generations who also happen to own most of the assets. Since younger workers couldn't buy assets when they were cheap, few have gained from "the wealth effect."

By effectively impoverishing the nation's younger generations, we've chosen a demographic doom-loop as marriage and birth rates have collapsed from 2007. Guess what happens when you make starting a family and buying a house unaffordable to younger generations? They no longer start families and have children.

As the Boomer generation retires, the legacy of retirement programs designed in the 1930s (Social Security) and the 1960s (Medicare) is fiscal bankruptcy as these programs are driving the expansion of federal spending and borrowing.

It's called a Doom Loop, with no exit, for all speculative asst bubbles pop. Once "the wealth effect" reverses, assets get sold off to raise cash and since only the wealthy can afford to buy them, there's no buyers left, so valuations crash.

It didn't have to be this way, but our leadership chose poorly, and the consequences will fall on us. Let's go through the charts supporting this grim reality.

Wages share of the national income has declined for 50 years.



As a percentage of GDP, Federal debt has tripled from 40% of GDP to 120% of GDP as synthetic "growth" replaced organic growth:



Thanks to the policy decision to reply on "the wealth effect" for consumption, wealth inequality has soared: the net worth of the top 10% (34 million Americans) is 2X the net worth of the bottom 90% (306 million Americans) and 27X the net worth of the bottom 50%--170 million Americans.



Most of the future expansion of Federal spending and debt is in programs for the older generations and rising interest payments on the expanding debt to pay for these programs.



Here are Econimica's explanatory comments on his three charts reprinted below:

"Federal Reserve policies have far-reaching consequences, well beyond interest rates and economics / finance. Given the Fed is a non-democratically elected entity making policy that is ultimately deciding the winners and losers or our modern-day society...perhaps it's time for a rethink of the power that has been handed to them?

Consider since 2007 (when ZIRP & QE were implemented):
---US births (blue columns) have declined by -0.7 million/yr (-16%...or 12 million fewer births than Census projected since '07 w/ the delta only continuing to grow)
---US female childbearing population (red line) +4.2 million (+11%)
---US 65+yr/old pop (white line) increased +27 million (+72%)

Think of who the economic / financial policies implemented since '07 favor (elderly/institutions holding the bulk of assets) and who they punish (young adults w/ little to no assets to shield them). Young adults have made the logical choice to have fewer or avoid children altogether. Unless something dramatic changes, suggest births/families will continue moving significantly lower and the future of the US working class is likewise deteriorating.

2007 was also the interest rate driven explosion in student loan debt and consumer debt (vehicles, credit cards, etc.) to allow a flat consumer population to continue consuming more."



Note how debt serviced by younger generations exploded higher from 2008 while the population and workforce made only marginal gains.



GDP minus federal debt was positive until 2008-09, and has since crashed into deeply negative territory. It's called eating our seed corn, spending money borrowed from future productivity and generations to fund unsustainable consumption today. Spoiler alert: this ends badly.



Regardless of assurances that this bubble will never pop, all bubbles pop, and they do so with remarkable symmetry, returning to their starting point.



Either way, we lose: if the Federal Reserve manages to keep the Everything Bubble inflated, we decimate the nation's younger generations, fatally destabilizing our society. If the bubble finally pops, all the phantom wealth that's been propping up consumption goes to Money Heaven, gone for good.

We will collectively bear the burdens of catastrophically short-sighted / self-serving policies of 2009-2025 for decades to come. Beneath the easily gamed statistical veneer, our economy and society have been hollowed out to the benefit of the few at the expense of the many.

These are real-world problems, not monetary problems. Unfortunately, playing around with "money" doesn't make all this go away: stablecoins, Universal Basic Income (UBI) and Modern Monetary Theory (MMT) are all disconnected from the real world: what ultimately matters is resources extracted, productivity and efficiency, and how the gains and losses of these real world factors are distributed.

"Money" in all its manifestations is simply the unit/medium used to instantiate the distribution.

Check out my new book Ultra-Processed Life and my new fiction/novels page.


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Ultra-Processed Life print $16, (Kindle $7.95, Hardcover $20 (129 pages, 2025) Read the Introduction and first chapter for free (PDF)

The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $16, (Kindle $6.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF)

Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $3.95, print $12, audiobook) Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free


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The Economy--and its Future--in Four Charts

Substituting debt for earnings while enriching the rich will bear bitter fruit.

Climbing above the craziness of the Normalized Now news flow to view the economy from a quiet, windswept peak helps clear the mind of clutter. The entire economy--and its future--can be distilled down to four charts that tell the underlying story of the U.S. economy over the past 55 years.

Many of the thousands of charts floating around illuminate some aspect of the economy, but these four tell the primary story:

1. The gains from rising productivity--the only durable source of prosperity--were shifted from wages to owners of capital.

2. As wages lost ground, the central bank (Federal Reserve) replaced cash earnings with debt, by a) lowering interest rates for 40 years, b) increasing the money supply and c) opening the flood gates of credit.

3. Wage earners used credit to pay expenses, the wealthy used credit to buy income-producing assets.

4. As a result, assets such as houses are now unaffordable to all but the wealthy.

The net result of these dynamics is the rich got much, much richer, and wage earners became debt-serfs paying interest to the wealthy owners of their debts. Let's start by noting the difference between an owner-occupied house and an asset (for example a rental property) that generates income.

The owner-occupied house may appreciate in value over time, but this increase isn't income or a capital gain until the house is sold. Until that point of sale, the house is merely an expense.

Student loans, auto loans, credit cards, etc. are also expenses. Wage earners' debts are expenses that aren't offset by income generated by the "asset" purchased with credit.

The quibble here is a $100,000 student loan will "pay off" by increasing the earnings of the student debtor, but this is not the equivalent of buying a bond that pays guaranteed interest. The university diploma may or may not pay off, or it may pay off for a few years and then become a net liability. It's more a wager than an investment, regardless of what the Higher Education / Student Loan industry claim.

The wealthy who already own assets have a much deeper pool of credit to tap, and the cost of borrowing money is lower for them, too. So the wealthy tapped the expanding pool of "money" and credit to buy income-producing assets: stocks, real estate, enterprises, etc.

Given the limited quantity of real-world assets that generate income, this relentless credit-fueled demand from the wealthy pushed the valuations of assets higher, rendering them less affordable to wage earners.

This massive, sustained transfer of wealth via credit expansion has been going on so long that it's now normalized: very few people can recall an economy that shared the gains with wage earners rather than diverting most of the nation's wealth to the already-wealthy.

This chart of wages' share of the nation's income is the key snapshot of the economy's core dynamic. No, it's not tech, or the stock market, it's this systemic shift of income from wage earners to owners of capital.



Over the past 50 years, this transfer amounts to a staggering $150 trillion: (same chart, but with the FRED database link)



Here is the chart of total credit expansion, which has outpaced not just wages but GDP (gross domestic product):



This chart of the top 9% (the top 1% have their own chart) shows how the rich have become much richer. The top 10% (top 9% plus the top 1%) have a net worth of $108 trillion, double that of the bottom 90% ($52 trillion), and 27X the net worth of the bottom 50% of the populace ($4 trillion).



The net result is housing has shifted from being affordable to wage earners seeking a place to live to an asset snapped up by the wealthy, private equity and corporations: since wage earners have lost ground, they cannot possibly compete with the wealthy in a bidding war funded by bottomless credit lines. Housing is now unaffordable except to the wealthy.



As a lagniappe, here is a chart of the wealth held by the top 0.01%, which illustrated how the wealth piling up in the top 10% has aggregated in the top 1%, top 0.1% and top 0.01%.



What future do these charts forecast? Instability on a scale few believe possible in the Normalized Now of $100 million homes, $600 million yachts and the speculative frenzy arising as those left behind seek some long-shot wager to gain a bit of the ground that has been lost over 2+ generations.

Substituting debt for earnings while enriching the rich will bear bitter fruit. How it manifests is unknowable, but that it will manifest is predictable. Extremes become more extreme until they break the entire status quo into brittle shards.

My new book Ultra-Processed Life, is available at a 25% discount (ebook edition) and 19% discount (print edition) through Friday, June 27.

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My recent books:

Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site.

Ultra-Processed Life print $16, (Kindle $7.95, Hardcover $20 (129 pages, 2025) Read the Introduction and first chapter for free (PDF)

The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $16, (Kindle $6.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF)

Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $3.95, print $12, audiobook) Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free


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Hollowed Out

The status quo has pushed everything to an extreme of hollowed-out instability to maintain a superficial appearance of normalcy and stability. But it's all fake.

The phrase that best describes the present era is hollowed out. By hollowed out I mean the exterior facade still looks pretty much the same as it did in the past, but the internal structure has corroded / eroded to the point that little remains of what provided strength and stability. What's left is the illusion of stability.

Our spectacles have been hollowed out, lifeless, rote repeats of past performances, reduced to unintentional parodies of what was once vibrant.

Our entertainment has been hollowed out, dominated by remakes, retreads, threadbare extensions of tent-pole franchises and sound-alike songs.

Even our outrage has been hollowed out, perfunctory displays phoned in from afar, as we all know outrage has been exhausted along with everything else.

Our "innovation" has been hollowed out, with toys such as flying motorcycles and self-driving taxis presented as "solutions" to phantom "problems," "solutions" that boil down to hype, clickbait or another reach for higher corporate profits. The most visible result of AI is AI Slop:

AI Slop: Last Week Tonight with John Oliver (29 min) (via Richard M.)

Our incentives have been hollowed out, leaving only the most perverse extremes. The motivation to flood social media with AI Slop is the faint hope of creating a viral link that earns a pittance for the AI Slopper.

Our realm of romance has been hollowed out, leaving a hellscape of dating sites and the wreckage left by ubiquitous online porn.

Our food has been hollowed out, ultra-processed slop remorselessly worked into "new" "innovative" products that are parodies of quality and innovation: you've just got to try the new jalapeno-yuzu-crawfish bagel...

Our politics have been hollowed out, with the only useful reform--requiring politicians to wear the logos of their corporate campaign donors--nixed because it would have made obvious what everyone knows: politics is now an open auction for favors and influence.

It would be far more honest if we conducted the passage of congressional bills as open auctions on eBay for all to bid and all to see: Buy Now for only $500,000: a tax break hidden deep inside the untouchable Defense Appropriations Bill.

Our economy has been hollowed out in virtually every sector, from Higher Education to Healthcare to housing. Much of what passes for "growth" is either waste (BS work, planned obsolescence, fraud), statistical trickery or artificial stimulus.

The shell remains standing but it now requires massive injections of borrowed money to prop up the rotted facade. Consider Higher Education. Before it was hollowed out, millions of college students were educated without needing to enter debt-serfdom to pay tuition and fees. As this chart shows, student loans were zero in 1993.

Now there's $1.5 trillion in student loans. The number of administrators quadrupled, while federal legislation made student debt the one form of debt that cannot be discharged in bankruptcy, effectively legalizing debt-serfdom.



The Higher Ed / student loan industry's relentless hype machine drummed the idea that doom awaited any young person without a university degree, or better yet, a graduate degree or MBA. The net result, as we all know, is a vast over-supply of MBAs, graduates of law schools and computer programmers, all fields currently being decimated as AI tools do to white-collar work what industrial robots did to blue-collar factory work.

Meanwhile, back in the real economy, the nation has a severe shortage of skilled trade workers--yup, the kind of work denigrated by the "you gotta go to college" machine. Yes, the kind of work AI and robots can't do: What AI Can't Do Faster, Better, or Cheaper Than Humans (June 2, 2025)

The housing and mortgage sectors have also been hollowed out, creating overpriced facades propped up by $2+ trillion in Federal Reserve purchases of mortgage-backed securities (MBS). How did millions of households manage to buy homes from 1946 to 2001 without the Fed nationalizing the mortgage sector and inflating one housing bubble after another in the process?



Private-equity and corporations with bottomless credit lines courtesy of the Fed have feasted on housing, pushing valuations to extremes of unaffordability while jacking rents to the stratosphere to maximize shareholder value at the expense of the workforce.



The status quo has pushed us into extremes of hollowed-out instability to maintain a superficial appearance of normalcy and stability. But it's all fake. If Higher Education now requires students to become debt-serfs, that is not a system worth propping up. It should be allowed to be obsoleted by much more effective and cheaper alternatives, for example what I proposed 13 years ago in my book The Nearly Free University and the Emerging Economy.

Everything has been hollowed out by insiders being enriched by a system that must be propped up with trillions in borrowed money lest it collapse under its own bloated weight. Insiders, grifters and apologists always trot out rationales which boil down to transparent self-serving excuses cloaked by piteous bleating. Garsh, it wasn't our greed, it was a butterfly flapping its wings in the Amazon...

Now that everything's been hollowed out, nobody is accountable or takes responsibility for any of it. Disconnecting self-serving greed from consequences is the key dynamic in hollowing out once-functional institutions and sectors.

Our experience of the real world has been hollowed out, too, something I explore in my new book Ultra-Processed Life, which is available at a 25% discount (ebook edition) and 19% discount (print edition) through Friday, June 27.

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Ultra-Processed Life print $16, (Kindle $7.95, Hardcover $20 (129 pages, 2025) Read the Introduction and first chapter for free (PDF)

The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $16, (Kindle $6.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF)

Self-Reliance in the 21st Century print $15, (Kindle $6.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF)

When You Can't Go On: Burnout, Reckoning and Renewal $15 print, $6.95 Kindle ebook; audiobook Read the first section for free (PDF)

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $6.95, print $16, audiobook) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $6.95, print $15, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
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The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $3.95 Kindle, $12 print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free


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