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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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One comment

  1. well, there is a distinction between law and economics. they are conflated all the time but they are distinct from one another.

    capitalism, even though the term was coined by marx, represents the economic aspect, and free market represents the political aspect.

    unfortunately there is a lot of confusion because the state practices capitalism too, among other things, but that’s state capitalism not laissez-faire capitalism



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