Thursday, June 12, 2008

#129 - The Bottom Line about Economics

The Bottom Line is:

Economic activity is a result of resource allocation by individuals which is a function of human nature, which like all natural things has equilibrium a sort of natural order. Like an ecosystem, everything is there and happens for a reason to keep this equilibrium in place, and any manipulation in either direction creates a need for an adjustment.

An ecosystem is made up of many creatures which interact in a way that keeps a natural order and balance, remove the tigers to protect the dears, the natural order is disturbed and adjustments occur which usually result in worse consequences.

So the health of the economy is related to the health of natural order of human behavior, so when you manipulate human allocation of resources to either accelerate or de-accelarate resource consumption you create unnecessary adjustments for short term gain which is NOT COOL.

In my best Chris Crocker Impression


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