"American children are having fewer accidents than they once did, and our natural inclination is to cheer the news. The rate of “nonfatal fall injuries” among children ages 5 to 14, for example, declined by more 10 percent from 2001 to 2012. But if fewer childhood falls reflect increasing attempts to safety-proof life, the trend might not be the improvement it seems. Various indicators suggesting reduced dynamism in the U.S. economy can be viewed similarly; our inclination is to celebrate a reduction in job destruction rates, but should we?"
Kenneth Rogoff identifies several obstacles to keeping living standards on an upward trajectory | Project Syndicate →
"The third problem is that of aging populations, an issue that would pose tough challenges even for the best-designed political system. How will resources be allocated to care for the elderly, especially in slow-growing economies where existing public pension schemes and old-age health plans are patently unsustainable? Soaring public debts surely exacerbate the problem, because future generations are being asked both to service our debt and to pay for our retirements."
Might the hyper-compensated and well educated engineer unforeseen, profitable solutions to these problems?That is sometimes a problem of economic thinking, failure to account for the potential of yet-to-be-developed better ideas.
"For the past three decades, one strand within the economics profession was constructing models that assumed that markets worked perfectly. This assumption overshadowed a wide body of research that helped explain why markets often work imperfectly – why, indeed, there are widespread market failures,"