The solution to Secular Stagnation is more gigantic stone monuments

by Sebastian Benthall

Because I am very opinionated, I know what we should do about secular stagnation.

Secular stagnation is what economists are calling the problem of an economy that is growing incorrigibly slowly due to insufficient demand–low demand caused in part by high inequality. A consequence of this is that for the economy to maintain high levels of employment, real interest rates need to be negative. That is bad for people who have a lot of money and nothing to do with it. What, they must ask themselves in their sleepless nights, can we do with all this extra money, if not save it and earn interest?

History provides an answer for them. The great empires of the past that have had more money than they knew what to do with and lots of otherwise unemployed people built gigantic stone monuments. The Pyramids of Egypt. Angor Wat in Cambodia. Easter Island. Machu Pichu.

The great wonders of the world were all, in retrospect, enormous wastes of time and money. They also created full employment and will be considered amazing forever.

Chances like this do not come often in history.