Several posts ago, I wrote about my concern of the, well, Argentina-ization of the U.S. economy. OK, I was exaggerating to make a point, but the point is still valid. My point is that the U.S. could, through mismanagement of our economy, squander our riches and create an institutional rut of impoverishment that would remake our society, none for the better.
Here’s another parallel: boom and bust cycles.
The causes are different in the U.S. and Argentina cases but the crippling boom and bust cycle of Latin American economies of the 20th century could see a parallel in today’s bubble and pop cycles. The question to ask: is our economy now structurally dependent on these cycles? Economists would probably laugh their heads off at what I am writing here, but the issue is one that worries people more erudite and knowledgeable than I.