Monday, July 14, 2014
It Is Time We Demand Our Government Only Deals With High Quality Money
Gresham's Law Extrapolated: Bad Money Forces Out the Good; Bad News Forces Out the Good; Bad People Force Out the Good and Bad Ideas Become the Consensus Lex Loeb Contributor Network . Political Science is sometimes taught in economic terms . Anthropology has it's transactional analysis. The social scientist usually does not think in terms of good verses evil. What is normatively bad is usually something really bad. The idea that society can be rated as good or bad is unbecoming as honest thought process. To Economists Good and Bad can become an objective parts by definition. It is one of the more interesting corruptions of the field of study where economists arbitrarily decide that social good is achieved by some arbitrary and capricious policy or political correctness de jour. It is not really scientific just by the means of definition for academics to assign absolute values to political chop shop goals and whims of politicians. The value of a currency in trade is also never absolute. Value and price more up and down in relationship to supply and demand based on how markets are organized. A gallon of milk or a gallon of gasoline can be $1 one day and $2 the next day. We often see commodities like gasoline going up and down in price by major percentage factors in just hours or days. If the hourly wage of works on both days is $10 an hour, than on the one day it costs the worker 1/10th of his hour's work and when the price goes to $2 it costs 1/5th of the same amount of work. Most workers will easily be able to tell the difference between good and bad and few will easily accept the higher price , doubling for milk or gasoline, in one day as good. It is almost objectively "Bad" thus. This is not the same as workers coming to a consensus that dirty foul air pollution from their industry is bad. The reason it cannot be assigned a universal evil or pejorative factor or variable is that pollution can be a definite trade off between productivity and wealth verses, unnecessary want and need. Many workers can accept the smoke and soot because as they are fond of say "it puts bread on the table." This is another way to say it a normal economic trade off that is not necessarily an absolute bad thing. When prices go up, for any reason, one can immediately come to the conclusion it is bad at least temporarily on the consumption side. When prices double in a day due to market forces the price increase is not anything rational nor is it something that necessarily benefits producers. producers might be getting a higher price but they could be overseas or they could be in a position to loose volume sales as a result of the sudden price increase. The instability that will double prices this quickly can be good or bad on the supply side of the equation. We Let our government(s) pump bad money into our economy for a quick fix like that needed by a drug addict ultimately the bad forces the good out of the economy and it leaves a severe sense of withdrawal trying to get good money back in. .