I began by writing a response to a post that left a bad taste in my mouth. It became a bit more so now there's this.
What is the economy, and what is it not.Simply put the economy is just an inadequate term attempting to describe all voluntary business transactions of a connected group of people.
It ranges from your local family farm to an Indonesian manufacturing collaborative. What I'm implying is that the entire world is connected via business.
Investors in the US buy goods from China and manufacturers in China buy goods from us in the Americas. You'd be doing yourself a disservice by sectioning off an economy depending on political borders
"Capital" is what it's all about... You might have heard of it, no not that marble building..
It's the valuable, durable good that is used in creation of more capital.
For instance your car / truck / 1950's VW van. Is a simple example of capital.
You use it as a tool to drive to work and make money or solve spooky mysteries, your vehicle is a capital good in your business.
And you my friend are investing it. By doing so you bear the risk that comes with all investment. This places you amongst the ranks the "Capitalists" congrats, welcome to the club!
Oh but you are important. You see: You, I, we've only got a limited amount of time on this rock. And you are growing, older, taller, fatter, slower, hungrier, thirstier. All an inevitability of our mortal selves. In order to survive this unforgivable world we must grow what we have along with ourselves, if we don't we will perish.
Look back on history the capital that is the stone axe grew into one made of bronze dug out of hillsides by hand, then smelted and forged over wood fire so one day it could transform into a steel wood saw pressed out of sheet steel with a machine driven by coal and steam. Which has now given way to a rotating serrated chain driven by a hand held internal combustion engine made up of thousands of components driven by chemical explosions of a liquid pumped out of the ground on the other side of the world. Which is now available to every person on this planet, as capital for their business.
This is just one simple example out of an uncountable multitude.
Life is improving food is increasing, wants and desires are being full filled. What could go wrong?
You could be robbed.
The second that happens your economy takes a hit worse then a bad investment which you could have learned from. The economy of those around you is hurt as you can't invest your capital with them. Everyone feels the pain, except for the thief.
Who is no longer part of the economy, he has become a predator of sorts praying on the those producing, so he can loot away the capital for his consumption.
Oh I’m sure he considers it “investment” but by bearing less of the risk that goes along with it they tend to be poor investments.
This person has joined a more exclusive club with allot of different names you can guess at. The most apt one I know is the “Looters” and like the capitalists they have evolved their methods over time.
What started out by traveling under the hot sun became easier if they stayed still near a river crossing, in order to spring upon the travelers. But why stop there? Surely their power over the crossing extended beyond just that. But more area meant more prey and they are only a few. How could they extract the capital they desired?
They would attach themselves to the economy of the capitalists, and instead of rob those at the crossing they would pay a “toll” instead of pillage they would tax, this would be consensual because they'd be proving a “service” they would become the capitalist’s protectors from their competition of course. They’d be their: Care Takers, Stewards, Lords, Kings sworn to protect the plebs under holy oath... their meals. For they are the State.
They became so good at their profession, they starved. The human cattle emaciated could not sustain them. So they would weaken and shrink and would be powerless to prevent what ever capital was left out there to grow. Only to be predated on by an other group.
This is a cycle evident through out history, when ever there is art, science, population growth, literature, land cultivation, music, in short life. There is an economy at work.
When there is a silence, a famine, a war, there is the State.
If anyone is interested still and wants to know about the little stuff such as:
An attempt of fixing over taxation with more taxation.
- What's up with Cash for Clunkers?
Because destroying capital grows the economy... pause... pause... not
- Why are businesses leaving the US?
Because they are smart, and you are stuck.
- How do Exports & Imports matter?
They don't, unless you consider yourself a country.
- What's this “Fed” thing and how's it virtually raping my wallet?
It's a way to tax you through your crummy type of money which you are helpless to stop.
Let me know and I’ll try not to be my boring overly serious self.
And please let me arm you with your preferred caliber choice of knowledge.
