Friday, September 18, 2009

Economics 101

And you wonder why we are in trouble?
Congressman Pete Stark
This is sophisticated thinking on Mr. Stark's part. It is really the inverse logic of Quantum Theory. The laws of physics predictably apply at all observable levels until we get the the smallest levels and then those laws seem to break down. This apparently works in reverse with economics. Basic economic laws work until we get to the largest (governmental) levels and then things change.

An individual's wealth is determined by subtracting his liabilities from his assets and what remains is equity or wealth. On a macro level, a government (or big government) level these economic laws break down according to Mr. Stark. And they not only break down a little but the laws are flipped 180 degrees. To determine a government's wealth we must measure its liabilities. The higher a government's liabilities the wealthier.

I know what you are thinking, how can this be? Well, few, and I dare say no one, really understands quantum theory. This must be the same with reverse quantum economic theory. And as Mr. Stark points out, one must have serious, PhD level education and training to grasp the concept. I wonder if Mr. Stark has training in economics? But no matter, he assuredly knows someone who does, or knows someone who knows someone. And he is running things in the 13th District of California. I wonder how that is going? It is going well to be sure because Mr. Stark appears confident in his understanding of economics.

To extrapolate this principle one could conceive of the following simple example:

No individual can provide for themselves and every other person at the same time. This changes I assume on a macro level. Governments can do this. Governments can provide everything for everyone by borrowing money. I think this is a very exciting concept and we should try it immediately.

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