Double Dip

Got double dip?

The artist emails I receive want the answers and tools on how to make money or to be successful.  Being an artist isn’t a get rich quick scheme.  Even though my sediment is repeated regularly, denial seems to be more comfortable than reality.   We are not out of this economic mess and it will take time.  However, which artists are up for the challenge and heartache called Time and Patience?  Not many, because we live in a results yesterday world.

Just ask my two favorite authors and economists: Ravi Batra and Paul Krugman.  They both predicted our current economic woes with their impressive backgrounds and insights.  As a result, Batra and Krugman are currently predicting a double dip recession and indicting that it will be some time before the economy turns around.

Ravi Batra is professor of economics at Southern Methodist University and author.  He has appeared in The New York Times, Time, World Report, CBS, NBC, CNN, and many more news outlets.  He predicted the downfall of Soviet communism, the current economic depression, and many other economic and political events.  According to Batra: ”The first question is this: Why does rising wealth disparity create poverty?  My answer is that it causes overproduction and hence unemployment and destitution.  It is all a matter of supply and demand.  Inequality goes up when official economic policy does not allow wages to catch up with the ever-growing labor productivity, so that profits soar and rising productivity increasingly raises the incomes and bonuses of business executives…Then money sits idly in the vaults of bankers and big-business CEOs and restrains consumer demand, leading to overproduction and hence layoffs. The toxic combination of mounting layoffs and absent job creation raises poverty, which, according to official figures, is now the highest in 50 years.”

Paul Krugman is author, columnist, recipient of the 2008 Nobel Prize in Economics, and professor of economics and international affairs at Princeton University.  Mr. Krugman’s newest book, The Return of Depression Economics and the Crisis of 2008, compares our current crisis to the Great Depression and the steps to move to a healthy economy.   Krugman on the meek recovery: “This has not been a surprise.  It was predictable and predicted.  We have all of the Reinhart/Rogoff stuff on the aftermath of financial crises.  It’s a little bit funny to be invoking a lot of special explanations for something that should have been expected.  And numerically, I don’t think those work.  We only export 2 percent of our GDP to Europe.  We’re operating 7 percent of GDP below capacity.  A trillion dollars a year.  That can’t be explained by these factors.  The actual shape of the recovery has been basically what those of us concerned about the size of the stimulus predicted way back when.”

The recovery has been diluted and hijacked to a lukewarm dribble of one-sided compromise.  As a result, it takes strong action now to turn the economy around.  Also, opportunities come and go.  The goal is to be consistent, steady, tolerant, and uncomplaining.  So artists of all ages and backgrounds, this ride is going to have plenty of hills and valleys.  So hold on tightly!  Remember, your art will keep you grounded…

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One thought on “Double Dip

  1. Jenny you sure do bring up two huge topics – the world economy and making a living as an artist. Even expert economist don’t have a clear picture as to how to get out of this. I read today that Germany is carrying 80% debt. When you think that the DAX has clearly been driving the US market for years, these numbers would make anyone nervous. Makes you wonder if we as artists really have a chance?

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