America produced its own goods and grew its own food. America's currency was backed by gold and inflation was nonexistent. New technology brought into play by new investment improved the productivity of labor, and living standards rose. Profits were plowed back into improved methods and expanded production.

Governments subsidized social infrastructure and education. This lowered the cost of transportation and, thereby, the cost of production and prices, and it provided industry and manufacturing with an educated work force. As an instate resident, my annual tuition at Georgia Tech came to about $450.

This highly successful way of running an economy was replaced by an entirely different economy, the one we have today. Who is responsible and how it came about is a story that can be told later but not in this column.

In the current economy bank loans are not made to finance new investment in new plant and equipment. They are made in order to finance the purchase of existing assets. Loans are made to purchase existing companies, load them up with debt, and sell off their assets. Loans are made to finance a buyback of a company's own stock, thus raising the stock price and resulting in executive and board "performance" bonuses. Loans are made to finance real estate purchases and thereby drive up the values of real estate, thus raising the cost of housing.

The new economy is financialized. It lives off of interest on debt and fees, the plunder of public assets via privatization, and exploitation of third world economies via dollar-based bank loans that can only be repaid by the indebted country selling its public assets to its American creditors, usually at rock bottom prices.