The problem gets deeper: This may sound insane, but I would argue that the productivity is way too high.
There is too much stuff, which is too cheap, which makes it too hard to make money by actually producing anything. This it turn splits the economy into two groups:
One that doesn't have money, live scrapping the bottom, and typically in debt.
The other that does have money, with no good opportunities to invest, which causes bubbles.
Don't worry, the unfortunate side of the "split" could just start a side-hustle! Maybe another podcast, or OnlyFans account. Everyone has a story to sell, and if not, just make it up! "Content creation" to create need for a marketing-made spontaneously mass-produced something, anything, as parasitic load on dopaminergic parasocial relationships. See? Growth finds a way! Super healthy, totally not an indicator of things getting catastrophically unbalanced.
Already, at capacity attention, over capacity exploitation. Infrastructure debts, planetary debts #YOLO
I wonder, when we're finally getting AI enhanced productivity end to end, will we realize how deep we dug ourselves in?
The wrong kind of productivity is too high. Too much consumer crap, much of it disposable. Not enough no-compromise blue sky R&D and research into physics fundamentals.
Evergrande is in the first group here, fruitlessly producing something of no real value, as there is too much of it.
The second group are those who invested in Evergrande itself, or the housing it built.
It sucks for everyone.
It sucks for Evergrande, as sooner or later it had to go bankrupt.
It sucks for those who invested in the housing, as it's clear that if they actually tried to sell or rent out the housing they would end up with some paltry sum.
It sucks for those who invested in Evergrande, as they're going to lose money.
It suck ls for those who can't afford a place to live because of the inflated prices.
I think there are really no winners here. No middlemen filling their pockets. It was a loss for everyone.
> It suck ls for those who can't afford a place to live because of the inflated prices.
Wouldn't a bubble pop help these people?
Wouldn't the ruling class on the opposite end of the leverage chain have benefited greatly with stacks of cash? The fun party is over now, but at least profit was successfully extracted from others. The extreme losers being people on the other side of the chain, paying mortgages on property that will never be built.
