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 independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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