March 26, 2022

Economics doesn't exist as an objective subject. It's sort of like the religion of horses. The contrivances of economists are so disconnected from reality that viewpoints follow motives rather than objective realities.

Money follows material objects. Fake economics attempts to disconnect money from material objects. The disconnects are irrelevancies, not the cause of anything apart from subjectivity.

Persons who accumulate money can do all sorts of wild things with it, but none of it is relevant to anyone else beyond other forces which are subjective. Gambling is one of the most common examples. The stock market, crypto currencies and nonfungible tokens are nothing but gambling tools. They are no more relevant than kids pitching pennies in an alley. The stock market was an investment tool at one time, but not much so since the 1950s.

Certainly, the Federal Reserve must manage the money supply; but there is no subject of economics involved. An artificial economic analysis only muddles the subject.

Which gets to the essence of the subject, which is the production of materials that determines the flow of money. Production process are outside the awareness of economists, which allows them to imagine a subject which doesn't exist.

Inflation is determined by production processes. When materials cost more to produce, the price goes up. Nothing else influences prices but the cost of production. That means putting people out of work to lower inflation causes inflation to increase. That's how inflation was jacked up to 23% during the late 1970s and early 80s. The more input for reducing inflation by making money less available and putting people out of work, the more the inflation increased.

Incompetents assume someone decides what prices will be, while the amount of money available is supposedly the most important factor. No one decides upon prices in the normal economy. Cost is the only factor. Certainly, there are many abnormal circumstances, where people play games with money. But they don't influence how money flows through the general "economy."

The resulting number one factor is that production capabilities must be improved to improve the general economy. Economists never evaluate that subject, because they are out of contact with everything related to production other than more subjective irrelevancies.

The number one factor related to production potential is the rationality of the persons involved. It takes a Steve Jobs to make major gains in improvement of products. It takes competent engineers to improve products. It takes real science to improve products. All of those requirements are being trashed by power mongers who assume manipulating money can solve their problems.

Power mongers drained the money supply from the general economy, and economists never noticed. In fact, they viewed the result as a wonderous economic expansion, as more money flowed through their gambling casinos.

The general economy was drained by channeling money upward and not allowing it to flow back downward. The money goes upward largely by selling products. It is supposed to go downward through wages and taxes. Wages and taxes have been in reverse for decades, while increased gimmicks were used for channeling money upward.

"Mergers and acquisitions" are the most significant method of channeling money upward and out of the general economy. When one corporation buys another, someone walks away with that much cash, while consumers repay for the company.

Those and many similar stunts were outlawed around the turn of the twentieth century due to robber barons ripping everyone off. When conservatives took over the world in 1981, they started a process of throwing out those laws while shoving the lower classes out of the economy and burning tax dollars to prevent government from making corrections.

Reagan said government is the problem, because government is supposed to correct such problems and use laws to do so. Conservatives assume laws to be corruptions, as conservatives are intolerant of any influences that stand in the way of their corruptions.