Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
In the same category

Why Study Economics?

IMG Auteur
From the Archives : Originally published June 30th, 2002
561 words - Reading time : 1 - 2 minutes
( 5 votes, 4.8/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Fundamental Ideas





"I place economy among the first and most important virtues and public debt among the greatest of dangers; we must make our choice between economy and liberty; or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy." (Thomas Jefferson)


In his statement, Jefferson used the term 'economy' in two slightly different senses. When he said economy was "among the first and most important virtues", he meant careful and thrifty management of public revenue. When he said we have to choose between economy and liberty, he was addressing the question of where the focus of government should be - whether government should expand its budget and provide public services or focus on protecting life, liberty, and property.


Jefferson understood better that any political leader in world history that government 'profusion' could only be paid by "the labors of the people." He knew that a growing government budget and an extension of the services government offers "under the pretense of caring for [the people]" can only come at the expense of private property and individual liberty.


The so-called 'new economics' of John Maynard Keynes formalized and gave quasi-scientific status to economic fallacies that are as old as civilized man. He provided a rationalization for government intervention into free market, for governmental control of the supply of money and credit, and for policies of irresponsible deficit spending and inflationary expansionism.


With very few exceptions, politicians and members of academia have taken his fallacies as axiomatic principles and expanded them into a hopelessly complex system of terms, symbols, and mathematical equations. They foster the view that only government, supported by countless task forces, high-paid consultants, and innumerable subcommittees and bureaucratic agencies can find the right set of 'compromises' to mange the mixed bag of interests in our nation.


They allege that the government should manage the economy by inflating the supply of money and credit to encourage production, while simultaneously taxing the 'excess profits' of the most productive industries; by deficit spending to provide the 'underprivileged' with 'equal opportunity', while forcing the businesses that might have been able to employ them to provide minimum wages, matching social security contributions, and unemployment insurance; by imposing trade barriers to encourage domestic industry, while simultaneously providing 'developing' third world countries with low cost loans or outright grants so that they will be our 'friends'; and the list goes on and on.


As appealing as this sounds we can't reverse cause and effect. Prosperity cannot be created with the stroke of a pen on a new bill in Congress. A money printing press cannot produce real wealth. If it could, we'd have eliminated poverty shortly after Gutenburg's 1440 invention.


Economics isn't a mystical realm, nor is it the province of geniuses or specialists with some kind of special insight akin to religious revelation. If you balance your checkbook each month and understand that you can't operate with a negative balance indefinitely, you already know more about economics than most government policy makers.


Resources:


  • Methods of a Wall Street Master by Victor Sperandeo.
  • Mises.org a website devoted to the Austrian School of Economics, a school of economic thought founded by Carl Menger (Feb 28, 1840 - Feb 26, 1921) with his work Principles of Economics published in 1871.



Mike Hewitt

Editor

DollarDaze.org





 



<< Previous article
Rate : Average note :4.8 (5 votes)
>> Next article
Mike Hewitt is the editor of www.DollarDaze.org, a website pertaining to commentary on the instability of the global fiat monetary system and investment strategies on mining companies.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
I'd say that this was More than a Farce , 5,000 silver futures contracts within a minute or two !!!!! ( some charts indicate NO increase in Vo...
LBMA Silver “Price”: A Perfect S...
29 JanJ T.
"Criminal" is not the same as "stupid"...and it's not a farce when it is intentional. The only Farce has to do with the criminals in positions of ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.47%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 50.90-0.59%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 24.85-6.44%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.94-3.64%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 50.90-0.59%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 50.90-0.59%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 24.85-6.44%Trend Power :
Corporate news
Comment this article
You must be logged in to comment an article8000 characters max.
Log in or Sign up