The Chaos Economy

“Move fast and break things,” the original motto of Facebook, has new resonance in the current economic and political environment. Chaos, once seen as unworkable and harmful, has gained momentum in certain powerful financial and governmental circles. The result of the federal government’s actions and advocacy by the superwealthy, the term Chaos Economy captures this moment in time. This unusual economic period is comprised of four elements, each of which is spreading: Uncertainty, brought on by constant changes in government policies; Unpredictability, made possible because of volumes of misinformation, sudden shifts in policies, and many more unanticipated events; Precarity, forced on many Americans who are starting to live with constant financial insecurity; and Volatility, created by sudden price changes in stores, trade tariffs and inflation everywhere. Together, these elements of the Chaos Economy create constant confusion and keep those who need to understand what is happening in the economy at risk of making decision errors and financial misjudgments.