How do we apply Permanent Portfolio theory to establishing a balanced economy?

[Odysseusa]

25% in Manufacturing
25% in Service
25% in Management

What else?

[jco]

25% gubmint!

[MediumTex]

I would say that an ideal economy would have a good mix of domestic natural resource production, agriculture, services, manufacturing and governmental functions.

Free trade is great, but if you have the option of keeping more economic activity within your own borders (all else being equal), I assume it makes for a more prosperous society.

[clacy]

I'm pretty sure Harry Browne did not want 25% government.  Anyway, the world/US economy is way to diverse to tidy up into 4 x 25% categories.

So how would you classify Agriculture, energy/mining, transportation, etc?  If you listen to Harry Browne's archives, he had no concerns whatsoever about manufacturing moving off shore and said that is a good thing for the US to be come a service economy.

[Odysseusa]

25% in Manufacturing
25% in Service
25% in Management
25% in Government/Union

[MediumTex]

25% in Manufacturing
25% in Service
25% in Management
25% in Government/Union

No agriculture or natural resource production?

What you are describing sounds like Japan.

[Kel]

I would say free market - don't try and balance anything...

[Lone Wolf]

I would say free market - don't try and balance anything...

Yep.

I think that Harry would recommend a "Permanent Portfolio" economy composed of 50% supply and 50% demand, operating like a gyroscope.

"Resist the urge to tinker."