My Economics is Made From Truth

When somebody starts talking about economics do you gaze off into the distance wondering, if he will ever get back to discussing something more engaging like why curve ball hitters tend to reach their peak later than fast ball hitters? If that describes your take on economics then you need to pay attention.

NOW!

Economics is a way to discuss policy and how it impacts each and every one of us. Like any social science (bet you snoozed through social studies in the 7th grade!) it is unequal parts science, history, guess-work, math, bull shit, and of course engaging repartee. Your economic view-point is built up from your political leanings, as well as your social priorities. So why pay attention to details. Pick a political philosophy and let the economists who agree with that philosophy determine how the economy works. That is what people have always done and why NOW! is different.

The difference is simple, and it is well-known, and politicians and economists to varying degrees are pretending to tell you they have it all under control. But they don’t. Much of that is because they are comfortable with working things out the way they used to be. Others, mostly politicians, believe they get more votes when the discussion of economics centers around taxpayer money. At the Federal level, there is no such thing as taxpayer money. Until the Federal government spends money; no money exists. The money is actually a loan so you can transact business with others and pay your taxes. When tax dollars are collected, the money collected serves to cancel out your portion of the loan and therefore it no longer exists. Poof! Gone! The money left in circulation is  the money supply.

Perhaps you may realize that when money only exists after government spends; it changes entirely the paradigm about how we look at economics. It is a powerful revelation and our politicians need to know NOW! that we know it as well.