How the Economic Machine Works

Posted on Posted in Economics

Ray Dalio, Founder of Bridgewater Associates, created a 30 minute primer on the economy that is insightful, charming and worth your time:

Dalio believes we are experiencing an end to a long-term debt cycle, which occurs approximately every 75 – 100 years, and the world’s central banks do not have enough firepoower to combat it.

His 3 Rules of Thumb:

1. Don’t have debt rise faster than income
2. Don’t have income rise faster than productivity
3. Do all that you can to raise your productivity

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