Your Punishment For Believing Lies

Download PDF Version                                                       October 24, 2018

I have a saying. When a lie is told, there are two guilty parties. There is the liar of course. Then there is the party for whom the truth is not good enough.  Without that arrangement few lies would be told.

The punishment for believing lies is suffering.  Suffering always follows the believing of lies but the suffering is not distributed evenly among believers. It is possible for a person go a full lifetime believing a slew of lies and never experience any meaningful suffering. This is especially true where collective issues are present. Generation one may believe the lie but it may be the next generation which does the suffering.

There is a cost to believing lies. The day the bill comes due is highly variable. For many, the bill for believing lies comes due only once or twice in a lifetime. This is the nature of the bill citizens around the world are being served at this very moment.

The lie of stimulus was introduced in the 1930s. John Maynard Keynes came up with his general theory honestly. He was not trying to hurt anyone. In just a little time, flaws in the theory were noticed. Keynes noticed them himself but then died. Monetary stimulus evolved by a different route but had been debunked or at least observed to work very poorly long before the modern era. Stimulus was reborn in the Reagan administration as a way to get self serving legislation passed and to transfer wealth.

The ostensible purpose of stimulus was and always is to benefit the economy. Following the passage of the Full Employment Act of 1978 stimulus became an every year phenomenon. There has never been a chance that government stimulus of an economy would be of benefit. Yet, Americans of every socioeconomic class have chosen to believe stimulus was good and necessary.

The two major ways stimulus destroys an economy are through preventing markets from clearing and by replacing price as the means of rationing goods and services. Economic intervention did not begin in 2008 with the financial crisis. Intervention has been ongoing since the Reagan administration. We have had right at 40 years of economic intervention. That means something other than price has been used to ration resources for 40 years. It also means the process of out with the old and in with the new has been displaced. A mis-allocation of resources is not visible to the eye but it is there. 40 years of making less than optimum use of the country’s resources guarantees an economic crisis.

For 40 years Americans have believed the lie that stimulus benefited them and the overall economy.consciousness.

 

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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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[…] Earlier Article Explaining Public Culpability: Your Punishment For Believing Lies […]

Brian
2 years ago

Liked this piece. One of my all time favorite reads was “Telling Lies” by Paul Ekman. A fascinating and enlightening book- it even delves into the reasons that targets believe the lies. They’d rather not know the truth and often- they reap what they helped sow.

D. J.
D. J.
2 years ago

It truly befuddles me that liars are in effect SUPPORTED by those who believe them. I have been lied to by a relative (runs a supply business), who convinced me that he had his finances in control. I lent him 10% of my net worth. It took 25 plus years to get my principle back. IT WAS PAINFUL.

Anonymous
Anonymous
3 years ago

Buy Bitcoin

Rodney Houston
Rodney Houston
3 years ago

How true.