The Aggregate Virtual Working Life Tenure

Copyright c, James T. Corredine, 1996
Middle Island, NY 11953
January 1997

The fundamental force that drives Kondratieff Long Economic Waves is the same force that drives us as individuals, ie. "the relative intensity of our vitality over our lifetimes". This fundamental force in the aggregate drives the fluctuation in aggregate economic data over the long term. The differences in the relative aggregate intensity of the population's vitality (and the relative aggregate intensity of the population's leadership cadre's vitality) over time create a regime, "The Aggregate Virtual Working Life Tenure," whose vitality fluctuates within a range of two fundamental extremes, vigor and torpor, driving economic phenomena that we have all heard familiarly described as vigorous or torpid or perhaps another descriptive term to represent a point within the range.

This regime, "The 54-Year Aggregate Virtual Working LIfe Tenure" describes the natural change in intensity of vitality that occurs collaterally with the changing age distribution of the population (and the changing age distribution of the population's leadership cadre.) At about 54 years in a working life tenure the population's (and the population's leadership cadre's) intensity of vitality is finally diminished to torpor, the old blood dies out ending the old regime allowing new blood and their new regime of vigorous vitality to hold sway.

Economics in the British/American tradition made a wrong turn at Ricardo/Malthus. Things would be clearer had we followed the thread of thought from Smith through Malthus and Keynes and not through Ricardo and his successors. Malthus's demand depression is rooted, I believe, in his idea of "effective demand" driven by his more fundamental idea of "intensity of demand". Had he lived long enough, I think, he would have seen his idea of "intensity" as the cause of the Long Economic Wave.

With help from Malthus, I view the 24-year Kontratieff upslope as the "Intensity Upslope" and the 30-year Kontdratieff downslope as the "Disintensity Downslope".

The 54-Year Economic Longwave is just the manifestation of the underlying relative "intensity" of human vitality over The 54-Year "Aggregate Virtual Working Life Tenure."

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