Saturday, February 20, 2010


Here in a nutshell is the underlying rationale for altering the basic economic structure of studying Inflation and Deflation. A recession comes along, and there is a build-up of finished Product, and Everyone thinks to get rid of as much Product as possible rapidly–i.e., a giant Sale. Everyone, likewise, knows without fundamental Change in Production Costs (read Wages), then the suggested deflation is only temporary–lasting only until Product supply is reduced. Inflation has inbred, built-it causes; mainly consisting of incentive packages to labor and Business to induce intensive labor over time. Excessive Government Spending creates artificial Shortages in nonproductive areas, do nothing to promote household incomes, and employ only a minor fraction of the labor supply under current Business formats. There will come a Time when economists must admit the old Keynesian model does not work to counter Recessionary periods, under the current level of Production and Technology. We are tired of the Dentist pulling the Tooth, when only a Root Canal is needed.

There are other wrong-headed ideas–like this! Domesticated Livestock is a primary characteristic of humanity, and a vital source of Food. There are indeed great Savings to be gained from the inhibition of greenhouse gasses from improved Livestock maintenance, but not at the Cost of higher charges to the Consumer. Such taxation calls for lower Incomes to reduce their Protein intake, which can be avoided by other Income classes. I await the taxation of flatulence from human beings, as well as taxation for an early bond to ensure every human being has the accumulated assets for proper burial. Increased Livestock production causes many problems, mainly from disease spread; but this requires health measures to counter the concentration, not taxation to make such concentration more slipshod.

This Post uses accurate data to present an utterly false presumption, which is that the economy must run a deficit to avoid recession. It is basically a Copout, stating there is no conceivable design for the economy where it will operate effectively at surplus. Because no one has ever tried it is not a justification for, or a proof that it cannot be done. Economists are great at proscribing policies based upon inaccurate and insufficient information, and by placing what information there is into models already proven deficient. There has not even been sufficient proof that Inflation is a mandatory condition to ensure economic performance. We need to enter a study period of undertaking holistic economic conjectures to simplify the economic performance criteria. Piecemeal adjudication of economic data will always bring disorganized economic effort; when We need serious directions for altering economic direction patterns. lgl

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