Seeing is Believing

Americans  are prepared to die for their fantasies. Our fantasies as they have been translated into military adventures have already killed many in foreign lands. I believe that many Americans will die. The reality we all have is the stress of uncertainty and uncertainty is all we have. No fantasy can change that fact.

Economics is a very simple subject. It is normal to come up with complex theories that tell us there are ways governments can stimulate economies productively. Charlatans become well paid for making people believe that economics can do things that cannot be done. The temptation to believe  smart people can make the universe less harsh than it is is overwhelming.

Free markets alone create wealth and optimize fairness. It is often said that government intervention is necessary to temper the harshness of free markets.  The fantasy is that government has a way to accomplish such a task.

A peculiar aspect of the free market system is that in the present moment benefits are invisible.  Adam Smith coined the phrase invisible hand. Society assumes nothing positive is going on.

On the other hand when unemployment increases and business fail, those things are right out front for everyone to see. It looks is if all opportunities are disappearing and nothing positive will emerge. Fantasy will dictate that government can fix it. People will fantasize that smart people in government will do something to keep the economy from collapsing. Smart people will bubble up with programs that are based on seemingly flawless logic. Fixing the economy is a terrific hustle. Much wealth and income has been accumulated presenting and implementing economic improvement plans. In the history of the world there has never once been a benefit from a government intervention in an economy.

The free market system is what occurs in nature when slaves are freed. In any other system, force is used in the market place. When Adam Smith was writing The Wealth of Nations, serfs in Europe were gaining freedom, both personal and economic. The difficulty in assigning a government the task of allowing free market discipline is that the population is unable to fathom that it will work.

So, many solutions are fantasized. None of them will work. Governments do all they can to prevent recessions. In time an even bigger recession occurs because government intervention always misallocates resources.

Citizens opt for government intervention because they can see economic problems as they unfold. The only real solution is to do nothing and wait as resources are being allocated more efficiently and new business ventures are bubbling up. Panic sets in because the solution, while working, is invisible.   The problems are in plain sight. People believe what they see but what they can’t see is actually much more important.

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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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