The Wasted Economy

Welcome to This Week’s Leyendecker View

When the soul is neglected, it doesn’t just go away; it appears symptomatically in obsessions, addictions, violence, and loss of meaning.
– Thomas More

FAVORITE READS OF THE WEEK

Large language mistake
LLMs are not intelligent.

Andrew Ross Sorkin’s 1929
What really caused the Great Depression?

Mexico exports cartel bosses to US
Welcome to America, bad guys.

MUST LISTEN OF THE WEEK

The West’s fading aristocracy
Are we doomed?

THINKING OUT LOUD

The Wasted Economy
Where did $38 trillion go?

Given that our country is at least $38 trillion in debt, should we consider that parts of our economy exist only because of Washington’s profligate spending? If we were not $38 trillion in debt, then wouldn’t our economic and industrial make-up look different from how it does today?

Which industries and companies exist today because we have been living beyond our means? What jobs exist today because we have been living beyond our means? And what pain might be in our future if we are forced to wean ourselves off Washington’s constant and ever growing monetary and fiscal stimulus?

Let’s consider some data from ChatGPT.

The average MLB baseball player’s wage in 1980 was a little less than 10 times the average worker’s wage at the time. But today, the average MLB player’s wage is 80 times the average worker’s wage. In 1980, the average value of an NFL franchise was about $80MM. Today it is almost $8 billion. That’s 100X growth in 45 years—quite a bit above inflation.

Could professional sports have greatly benefited from the trickle down of our government’s spending largesse? If so, can professional sports teams and players continue to rocket ever higher in value?

In 1980, we had about 11 restaurants for every 10,000 people. Today, we have about 22 restaurants for every 10,000 people. Is 22 per 10,000 the right amount, or do we have too many restaurants? Today people spend more money going out to eat than they do at grocery stores. Has the government’s explosion of fiscal and monetary stimulus over the last 45 years artificially boomed the restaurant industry?

In 1979, there were 3,500 mini storage warehouses in the country. Today, there are estimated to be over 52,000 mini storage warehouses in the country. That’s 6.3 square feet for every person in the country. What’s in all that space? Mostly stuff we have over-consumed that, for some reason, we can’t get rid of. You think the stimulus from $38 trillion in debt has created a country addicted to consumption?

Since 1980, medical care costs have gone up 7.7X, while general prices have gone up 3X. An aging population is behind some share of this spike in health care costs, but ever more government regulation has driven up the lion’s share. Is health care too expensive? Absolutely! This means health care costs must fall, which means fewer revenue streams to support hospitals, clinics, doctors, nurses, and more. Is health yet another industry that the government has skewed?

Then there’s the cost of college. Since 1980, the average cost of tuition has increased at a rate 4 times higher than inflation, while college room and board have also increased significantly faster than inflation. Here’s another “industry” where the government’s influence has driven up costs. Is higher education too expensive? Absolutely! This means colleges and universities must cut costs, which means less capital to support buildings, professors, administrators, and more.

On the surface, the aforementioned sectors of the economy seemed to have enjoyed greater to much-greater-than-average growth as our economy became ever more dependent on fiscal and monetary stimulus. Surely there are others. This extra $38 trillion has likely “juiced” all manner of industries.

So what will happen if Washington is forced to tighten its belt? Will private sector growth be able to take the baton and continue to support these and other bloated industries?

It seems that Team Trump’s goal is to put the onus of industry back where it belongs—on the private sector. Unfortunately, his success might depend on the legacy media, bureaucrats, and political class to get out of his way. Not likely. The former is too addicted to casting Trump as the perennial villain in a never-ending, profit-generating soap opera. And the latter two will stop at nothing to safeguard their own power and personal largesse.

Benjamin Franklin said “…he that goes a-borrowing goes a-sorrowing.” America’s founders were fiscal conservatives, and the country remained fiscally conservative until the Great Depression and World War II.

At our peak borrowing during World War II, the country’s debt to GDP was close to 120%. This was on the heels of the desperate years of the Great Depression and then huge industrial investments to support war efforts. Today our debt to GDP has eclipsed 120%, yet many in the country are living a life of unbridled luxury.

In the process of “achieving” a new debt to GDP record, we have artificially stimulated growth in many industries and created many companies and thousands of jobs. How will these beneficiaries of our $38 trillion in government debt fare if our economy is forced to live within its means?

THE RANDOMS

How likely is it that world leaders are kowtowing to Trump because they know they only have to wait three more years until some bumbling bureaucrat replaces him?

Indiana’s big football win over Ohio State shows what a cooperative and collaborative team can do against superstars with NFL stars in their eyes.

How ugly would our economy be if the stock market “corrected”?

LLMs aren’t making us smarter. They’re just making us quicker. Searching for information now takes seconds, not minutes, hours, or days.

There are several types of wealth. There’s financial wealth. Intellectual wealth. Family relationship wealth. Spiritual wealth. Health wealth. Time wealth. Power wealth. Friendship wealth. When one dies, which categories of wealth do you think one cherishes the most? Which does one regret under valuing and over valuing throughout his or her life?

If Ukraine wants to hold or strengthen its sovereignty, then it seems the right strategy is for them to inform Russia they’ll fight for as long as it takes to maintain sovereignty.

The sun will come up every morning until it dies. There are very few scientific truths as sound as that one. If so, how many “knowns” in the scientific world are really just opinions?

Should’ve, would’ve, could’ve can be a big waste of time. Focus more on what you’re gonna do.

ECONOMIC NEWS

Economy

Fed cuts rates to 3-year low
Leading economic indicators keep falling
Yet job openings are rising
While consumer sentiment ticks up

Labor

It’s been a big layoff year
How executive pay went galactic
AI can replace 12% of workforce, says MIT
The top interview questions

Health Care

Is our water contributing to Parkinson’s?
Drugmakers start ditching middlemen
Obamacare is a mecca for fraud

BUSINESS

Finance

Private credit booms in emerging markets
Is an IPO boom coming?
Massive debt-fueled deals are back big time
Banks get green light on higher-risk lending
Stocks will keep going up and up and up

Real Estate

More buyers want fully-furnished homes
Home sellers setting prices too high
Home Depot not bullish on 2026

Tech

SpaceX plans record IPO
Have you put in your smart ring order?
Has Google cracked the smart glasses code?
Australia readies child social media ban
Looks like Apple has big problems
IBM buying AI services company

AI

Accenture embraces Claude
Google has the upper hand
Who are the AI guinea pigs? Our kids
How to spot the AI bubble bust
How long will AI chips last?

Energy

Bring on nuclear-waste fueled reactors
Jet engine electricity is here
Oil markets face super glut
Canada backtracks on climate change

THE NATION

Politics

SCOTUS signals ruling against bureaucrat overreach
Is Jamie Dimon about to run for president?
Is this Republicans’ weak spot?

Policy

The Trump Gold Card is coming
Trump seems friendlier toward China
Trump says “no” to state AI regulation
Trump’s new national security strategy
Trump has $12B for farmer aid

Culture

Is religion really on the rise?
NY won’t let the rich leave easily
Dollar-store industry is scamming customers
Affordable teacher housing in California
Minnesota, land of gullible chumps

Trade

Mexico to hike tariffs on China
Trump wants a royalty on Nvidia sales to China
China is in trade compliance with US
The downside of exporting LNG

GEOPOLITICS

Global

Denmark is delusional
US seizes Venezuelan oil tanker
Thailand and Cambodia still fighting
Australia’s economy is hot

Europe

Trump snubs Europe
German industrial production surges
The EU’s plan to censor speech
EU keeps trying to destroy its economy
The Swiss favor a population cap

Ukraine

Could Ukraine join the EU in 2027?
Trump proposes free economic zone
Europe messing with Zelensky’s head
Is Europe the real villain in Ukraine war?
Anonymous drones scare Europe
Europe says no more Russian energy

Middle East

Gaza, 68 million tons of rubble
Hamas fighters trapped in tunnels
Hamas terrorizes Palestinians
Egypt and Israel in $35B gas deal

China

No one does electricity like China
China trade surplus sets record
Still the world’s factory floor
China keeps stressing out Japan

War Creep

China launches massive drone carrier
Here come the submarine drones
Japan builds up missile archipelago
Italy has an AI air shield system

MAKING A BETTER YOU

Mind
Get more quiet time.

Small habits to make life better
What-makes-you-happy quiz
How to handle difficult people

Body
Get more outside time.

Ginger is your good friend
Sleep should be delicious
Neurologists hate soda

FUN STUFF

Let your hair down, baby! Even if you’re all alone.

The Extraordinary

Roads, the key to the Roman Empire
An NFL grandpa quarterback?
Amazing sculpture parks in the world

Music That Found Us

Best jazz albums of 2025
Persian jazz
David Byrne’s Tiny Desk Concert

Worth a Watch

Merv, are dog movies irresistible?
Wake Up Dead Man: A Knives Out Mystery
Avatar: Fire and Ash

The Yum Yums

Grilled cheese!!!
Classic grilled cheese
Pepperoni grilled cheese
Smoked gouda and roasted red pepper
Grilled cheese with bacon
Grilled tomato and cheese
Corned beef and cabbage grilled cheese

PARTING THOUGHTS

I’m not so dominant that I can’t listen to creative ideas from other people. Successful people listen. Those who don’t listen don’t survive long.
–Michael Jordan

IN CASE YOU MISSED IT

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A Cure for the News Blues
December 5, 2025

The Country of Texas
November 28, 2025