Monday, January 19, 2009
We hear so much about the word Economy. There are efforts underway to improve, restore, or otherwise affect the Economy. So, just what is this thing called Economy?
Two separate and widely different views appear to exist to describe the economy. The Class Warfare view is that the U.S. Government prints and owns a certain amount of money which constitutes a finite set of available dollars (known as wealth). When the economy is in a slump, the government simply prints more money.
This view means that a finite set of dollars is made available for distribution to individuals. The scenario suggests there is a race to acquire these dollars by any means possible. Some people manage to get a greater share while others find themselves with less.
Often, there is a description that some people are the “Haves” while others are the “Have Nots.” Those whose view this believe that the economy has a finite amount of wealth. They often believe it is not fair that some have more while others have less. This perception can lead one to support a philosophy that the government should “spread the wealth around.”
The "spread the wealth around" philosophy leads to greater government involvement into an individual’s life, and greater government control: control of businesses, banking, industry, and services, leading to less control by the individual. Human’s natural desire for self-control and betterment becomes defeated. Individuals become victims. Progress by humans becomes impeded. In short, less independence and more dependence upon the government is enslavement.
The individual achievements view of the economy is more akin to the process as natural as breathing. This view is that money printed by the government is owned by the individual who possesses that money. It belongs to the citizens, not the government.
The economy is stimulated by the exchange of that money for goods and/or services. Economy is the ebb and flow movement of that money as natural as breathing air (expanding and contracting naturally).
As the economy expands, wealth is created. As the economy contracts, wealth is lost. Left totally unchecked, the expansions lead to a heady sense of fulfillment while the contractions lead to a sense of depression.
Greater individual responsibility requires smarter choices regarding saving, spending, and investing which can increase wealth during economic expansion and sustain a positive financial state during economic contraction.
Achieving a better financial state by individuals through self-improvement leads to less dependency upon the government, and greater freedom.
These two separate and distinct views of the economy clash when any government begins to inject itself into “managing” the economy. For the “breathing” economy, government intervention that attempts to lessen the extreme highs and lows always results in an overall lowering of the highs and greater sustainment of the lows.
Having the government take money out of the economy (which it does with every “stimulus package,” or "recovery plan," or any spending) is like taking air out of the breathing process. Such intervention reduces the ability for expansion. Less government intervention always allows for economic expansion.
Therefore, Money is Air – Economy is Breathing. Will the government allow greater freedom (individual achievement) or less (Class Warfare) ability to breathe?
Monday, January 19, 2009
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