Institutions leaders and humans beings are defined a certain way and unwary naive economists base their work on these definitions. Because I am fantasy free, my work is based on how leaders and institutions and people actually function.
The Federal Reserve is defined as a necessary institution critical to the performance of the economy and the wellbeing of society. In actual practice, the only thing the Federal Reserve does is serve as a money transfer engine. Money is transferred from all who have little or no political power to others who are powerful enough to dictate government policy.
Keynesian Deficit spending is defined as a necessary practice useful in stimulating the economy when aggregate demand is lacking. Governments do not make economic decisions although they are deemed as doing so. Governments only make political decisions. The result is that that deficit spending does not stimulate the economy. Deficit spending, like monetary policy serves as a money transfer engine. Deficit spending entails giving contracts to and supporting businesses which pay with political contributions for the results they want. The wealth transfer is permanent. Any resulting increase in economic activity is only temporary. Deficit spending interrupts the out with the old and in with the new principle that free market economics is based on. As time goes on the nation’s resources become more and more mis-allocated until a crash occurs.
Human beings are popularly defined as close to divine to having a high natural intrinsic value. In close relationships that definition may hold. In the aggregate it does not hold at all. People are deemed to be unique, freedom loving and independent minded. In actual practice it doesn’t work that way at all. Freedom is treated like an asset and is traded for comfort and reassurance. The notion that government is like a benevolent parent providing for everyones needs is too comforting to reject. Government as a whole ends up serving primarily as a money transfer engine. All bills on which congress votes serve to rig one market or another. The public naively believes government performs according to the definition that is given.
Many wonder why the upper one tenth of one percent have such a high portion of the nation’s wealth. I have just explained why.