Archive for March 13th, 2009

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Basic Economics

March 13, 2009

I’m listening to Jason Lewis from Minneapolis, who filled in for Rush yesterday, on the Rush podcast right now. If you are not a member of Rush 24-7 it’s worth it just to hear his description of the economic issues we are grappling with right now.  He stresses the point that government doesn’t produce anything. Therefore, a job created in government is coming from either (a) more taxes, therefore most likely eliminating a private-sector job in the process, or (b) just by printing more money. Printing more money without a corresponding increase in GDP causes what? Inflation.

Also, the writer of the “Who Is John Galt” blog has a good explanation of why there is really no such thing as capitalism. It was a word created by Karl Marx as the opposite of his socialist philosophy. Basically, what capitalism boils down to is maintaining the rights of individuals to their own property, and freedom – that’s it. He says, “it’s just what happens when free people exercise the property rights that make them free, working to turn more and more of their labor into more and more value. ” Both are things the current administration is chipping away at, much faster even than it had been done in the past.

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