How the Rich Got Lazy

 No one gets lazy without a lot of help. The poor are often accused of being lazy. It is often said that programs to help the poor rob them of initiative. It is said, the more government gives to the poor, the lazier they get.

What happens to the rich when, they get lots and lots of government benefits including artificially manufactured wealth and all the money they want to borrow for less than the rate of inflation? What happens when Federal Reserve policy is used for nothing other than to drive up stock prices for the benefit of the richest people on the planet while driving corporate profit margins much higher than they would be in a free market?

I think you guessed right. The rich get extremely lazy. They stop innovating. Their entrepreneurial skills get rusty. They keep their hands out so as to get more and more from the tax payers. The government giving to the rich does certain types of damage that does not occur when giving to the poor.

When the rich are on the dole, corporate profits suffer and the poor get laid off or fired. When the poor are lazy, the same effect does not occur. The poor don’t innovate and come up with new business ideas. They just wallow among themselves and the damage doesn’t spread.

When the rich discover that all they have do do is wait for the Federal Reserve to drive up the prices of their assets what follows.? It is a lot easier for a corporation to buy its own stock and create artificially high earnings. Who needs new and better products to sell if government pays for not innovating?

The Federal Reserve is starting to make noises about buying equities outright. They already do so through surrogates. They may be buying equities now, even if they are forbidden by law from doing so. Laws at the top are no longer enforced and no one outside of the Federal Reserve really knows what they are doing. It is a secret integrity free agency.

One way to make absolutely sure the economy never recovers is for central banks to buy stocks. Many foreign central banks, like Japan already do. The Swiss do. These programs guarantee economic failure for all industrialized nations.  Do not wait for the global economy to turn around anytime soon. Citizens around the world are mostly clueless as to what is going on and have no idea how much wealth and income is being taken from them. For Americans, the rich are their role models and are beyond criticism in the eyes of citizens.

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About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
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