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The "economists" from the Ivy League that work in, and are mouth pieces for our government, seem to be detached from reality. Maybe because all they do is "study models" and have no real world experience doing anything.
This writer explains it well:
"Nothing illustrates this point more clearly than the Federal Reserve’s recent idea to flood the American economy with green paper in order to "create" jobs. This idea is so harebrained that only a self-delusional and arrogant "intellectual" could possible entertain it. More green paper does not create jobs. More un-backed credit does not create jobs. Inducing the federal government, average Americans and American companies to take on more debt (by artificially lowering interest rates) does not create jobs. Discouraging people from saving money (because they will earn virtually no interest on their savings) does not create jobs. More fundamentally, "intellectuals" with a printing press do not create jobs, howsoever much they might like to delude themselves into thinking they do.
Whenever the economy does create jobs, it is always because of average men going out and making something that people want to buy. This process of average men creating jobs can only be impeded by intellectuals and politicians standing in their way. They do not need intellectuals and politicians to give them "incentives" to do this; the motive to earn profits is all the incentive they need. They do not need the intellectuals to flood the economy with green paper in order to have an incentive to earn profits. They do not need politicians to regulate and tax them to death in order to have an incentive to earn profits. Quite the reverse, anything the intellectuals do to confuse the average man’s business calculations (e.g., by tinkering with interest rates and flooding the economy with green paper), and anything the politicians do to reduce their profits (e.g., by taxing them to death or regulating them into oblivion), will only reduce their incentive to try to earn profits."
Lew, long time ago I knew an old logger who got into the saw mills, then lumber and then into converting saw mill waste into topsoil, mulch, wood chips and charcol.
I'd bet there was more money in his mattress than some banks are worth. World War II left him owning entire mountians in Pa and NY.. Lumber was so valuable during WWII he could buy the land for less money than the timber that was on it.
Hilarious! Thanks Grumpy.
ReplyDeleteUnderstandable, it makes sense to people besides economists...
ReplyDeleteThe "economists" from the Ivy League that work in, and are mouth pieces for our government, seem to be detached from reality. Maybe because all they do is "study models" and have no real world experience doing anything.
ReplyDeleteThis writer explains it well:
"Nothing illustrates this point more clearly than the Federal Reserve’s recent idea to flood the American economy with green paper in order to "create" jobs. This idea is so harebrained that only a self-delusional and arrogant "intellectual" could possible entertain it. More green paper does not create jobs. More un-backed credit does not create jobs. Inducing the federal government, average Americans and American companies to take on more debt (by artificially lowering interest rates) does not create jobs. Discouraging people from saving money (because they will earn virtually no interest on their savings) does not create jobs. More fundamentally, "intellectuals" with a printing press do not create jobs, howsoever much they might like to delude themselves into thinking they do.
Whenever the economy does create jobs, it is always because of average men going out and making something that people want to buy. This process of average men creating jobs can only be impeded by intellectuals and politicians standing in their way. They do not need intellectuals and politicians to give them "incentives" to do this; the motive to earn profits is all the incentive they need. They do not need the intellectuals to flood the economy with green paper in order to have an incentive to earn profits. They do not need politicians to regulate and tax them to death in order to have an incentive to earn profits. Quite the reverse, anything the intellectuals do to confuse the average man’s business calculations (e.g., by tinkering with interest rates and flooding the economy with green paper), and anything the politicians do to reduce their profits (e.g., by taxing them to death or regulating them into oblivion), will only reduce their incentive to try to earn profits."
You can read the entire article here:
http://www.lewrockwell.com/crovelli/crovelli52.1.html
Lew, long time ago I knew an old logger who got into the saw mills, then lumber and then into converting saw mill waste into topsoil, mulch, wood chips and charcol.
ReplyDeleteI'd bet there was more money in his mattress than some banks are worth. World War II left him owning entire mountians in Pa and NY.. Lumber was so valuable during WWII he could buy the land for less money than the timber that was on it.
He owned every bit of it out-right.
I have heard this before, glad you posted this to educate people. :)
ReplyDelete