Month: April 2020

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Bad Household Analogy Two

April 10, 2020

The current situation with the corona virus lockdown brings clarity.

The economy starts from the bottom up. It consists of millions of people getting up in the morning, knowing where to go, what’s expected of them, and getting paid for their time and effort.

The economy is not something the government, businesses, or wealthy individuals provide for the rest of the population. The economy is not Le Patron, his bank account or his stock portfolio. It is the butler and the maid and that person at the door. Who knew?

MOE

M.I.C.H. – Modernity, Intelligence, Complexity, Humanity

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Bad Household Analogy One

April 10, 2020

Just because debt is a problem for a household doesn’t mean it is also a problem for the Federal Government. Consider a couple of differences:

1.) You can’t print money. The government can.

2.) You don’t have millions of armed men and women to prevent anyone from collecting from you. The government does.

Debt is the investment product the government sells. We and all the Nations of the World buy it by the truck load and there’s nothing wrong with that. All that is necessary for this to continue to be a good model for a civilization is peace and prosperity, honest accounting, confidence in the future, and everybody getting up in the morning, knowing where to go, what’s expected of them, and being fairly compensated for it.

MOE

M.I.C.H. – Modernity, Intelligence, Complexity, Humanity