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Re: Real DOW Update: Still looking for a bottom?
Your saying that the bus has no driver. Economy acts as a RESULT of human action, not vice versa. If you explore cause and effect, you find that the reason why a worker needs to work harder to support himself is because his productivity isn't keeping up with his consumption. He wants more than he can produce and if he can't support that desire with current productivity he needs to borrow it. When a society borrows heavily, it leads to a artificial rise in prices which are only made possible by access to easy credit. He borrows for current consumption which means he MUST either produce more in the future or consume less to pay his debts.
The problem with society which lead up to economic ones are man has infinite desires and limited resources. This is basic human nature, codified by economic principle. Good economics should act as a brake on that base human instinct, but since human activity governs economics and not vice versa economic principles of growth can be circumvented for a while vis a vie credit and monetary debasement.
Societal virtues of thrift, savings and productivity are what drives a good economy. A good economy can easily be ruined by bad human action, whereas good human action leads to a good economy. Your argument is a determistic one and seems to assume that humans act like laboratory rats influenced by the "animal spirits" of an economy.
Originally posted by jtabeb
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Your saying that the bus has no driver. Economy acts as a RESULT of human action, not vice versa. If you explore cause and effect, you find that the reason why a worker needs to work harder to support himself is because his productivity isn't keeping up with his consumption. He wants more than he can produce and if he can't support that desire with current productivity he needs to borrow it. When a society borrows heavily, it leads to a artificial rise in prices which are only made possible by access to easy credit. He borrows for current consumption which means he MUST either produce more in the future or consume less to pay his debts.
The problem with society which lead up to economic ones are man has infinite desires and limited resources. This is basic human nature, codified by economic principle. Good economics should act as a brake on that base human instinct, but since human activity governs economics and not vice versa economic principles of growth can be circumvented for a while vis a vie credit and monetary debasement.
Societal virtues of thrift, savings and productivity are what drives a good economy. A good economy can easily be ruined by bad human action, whereas good human action leads to a good economy. Your argument is a determistic one and seems to assume that humans act like laboratory rats influenced by the "animal spirits" of an economy.
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