Theft by Stimulus

Jean and I used to joke about visiting prisons to teach thieves legal ways to steal money. That way they wouldn’t get locked up again and taxpayers would not have to support them behind bars.

Economic stimulus is a euphemistic term for theft.To know this, it is not necessary to go through volumes and volumes of  economic dogma. Any theory or approach that is used by government to stimulate the economy can be debunked in a few sentences without even knowing the specifics of the dogma being used. The current round of theft began after Reagan took office in 1980. The United States has experienced at least thirty seven consecutive years one kind of stimulus or another.

John Maynard Keynes assumed a completely objective person would make decisions with respect to implementing  a plan. Keynes called this person a straw man. There is no such thing. Governments do not and cannot make economic decisions. Governments make political decisions. Whatever person or persons who make decisions on stimulus are acting politically. What is called stimulus, always will, for that reason transfer wealth and income to politically powerful people who lobby for the program. Theft is the true incentive behind stimulus. Stimulus is never successful in improving the economy. It is successful in stealing money from the poor and middle class and channeling it upward.

Also, notice that the plan for economic intervention also undoes one or more of the pillars free market economics is based on. One of the requirements for any currency is that it be scarce. Scarce simply means not enough for everyone to have all they want. Any thing that is scarce commands a price. When the Federal Reserve increases the money supply and pushes interest rates down below the rate of inflation, they are removing the necessary scarcity quality of the currency.

The right amount of money in an economy cannot be determined by government. Although the concept is abstract and an exact amount of money cannot be accurately calculated, it amounts to all money earned plus what can reasonably be expected to be repaid. When government creates money, the supply is split into two classes. The public and regular investors only have access to the money they earned. Extra money created by government has no limit and is distributed politically according to political power. The artificially created money is used to extract wealth from holders of money that has come into existence by virtue of work performed. Some advocate that money be backed by gold. That is fine but to be sound, money must be backed by work.  A situation is created where government money is used to manipulate the behavior and decisions of people who only have access to what they have earned and what they can borrow based on future earnings.

If an economist is paid enough, he will produce a plan to stimulate the economy. Stimulus will be given as the as the ostensible goal. The true goal is always theft. Stimulus is always successful in stealing money. Government provides legal ways to steal money. The techniques are not available to thieves in the private sectors. Aspiring thieves should learn to work through government. The payoffs are bigger and there is no risk of going to prison

The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.

Fantasy Free Economics recommends the following blogs.

Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts

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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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