My Two Cents
Over the years, we have written multiple times about the system of Keynesian economics, its dysfunction, and the fact that it is a pure lie. This has all been well-documented from studies, observations, right down to remarks made by Keynes himself regarding the long-term viability of his new faux economics.
However, from Keynesian economics, there has morphed another type of economics. A more ignorant and destructive type of scarce resource allocation – which is what economics really is after all – and this type is no respecter of persons, intellect, position, or influence. We could easily call it the economics of entitlement, but that would be misleading because when most think of entitlements, they think about Social Security, Medicare, and other government programs. No, that’s not where the sense of American (and global) entitlement ends. It ends with the average working stiff who is paying 20% on a $40,000 / 7 -year truck loan with a balloon payment because his buddies told him he wasn’t cool if he didn’t have such a truck. There are zillions of other such examples of financial stupidity, however, nobody is bothering to tell these folks that they’re committing financial suicide. The banks certainly aren’t going to tell them. The government? Talk about the kettle and the pot. Or maybe there is too much legal pot. We certainly can’t legislate common sense, but we sure try to legislate away the consequences of foolish behavior.
Yes, we feel we are entitled to have whatever we want, whenever we want, regardless of price or cost. Note there is a difference between price and cost. Price is the number of depreciated American dollars you need to part with in order to obtain the toy of the day. The cost is real amount of labor you pledge, lost sleep, heartburn you endure or other opportunities you forego in order to have that toy. Big deal guys, right? Well it is a big deal. We are going to show you quite a few charts today. You’ve seen some of them before, so part of this editorial will be an update of sorts, but then we are going to take a look at what individuals might do on an individual and community level to insulate themselves to some degree from the fallout that is inevitable from the decades of abuse of the true laws of economics.
This post was published at GoldSeek on 19 September 2016.