Why the Economy is so Bad (and How to Fix it)

by

Neal S. Reynolds

Years ago, when the economy seemed to be doing great, I wrote my first essay regarding how beneath the surface things weren't really as good as they seemed, and if some fundamental changes weren't made the economy would eventually come crashing down like a house of cards.

I never succeeded in getting that essay published, and my efforts to convince my friends and acquaintances in person generally fell on deaf ears. Given the current state of the economy, however, I decided to write and post this essay (which incorporates the concepts of my original one).

PREAMBLE
I strongly encourage those who think this essay has merit to e-mail the link to it to their circle of friends and relatives. (I further encourage those amongst that group who think likewise to do the same. And so on, and so on, and so on...) If this is done, perhaps there is still time to save our economy -- and country -- before it is too late. For those who believe that our economy will simply, in time, recover by itself (or that the war will boost it back to normal) are, I fear, seriously mistaken.

The two primary reasons for the current poor state of the economy are actually far simpler to understand than the mass media pundits or government officials would have you believe. The establishment is highly motivated to make people think that "running the country" is something that only a special privileged (and of course highly paid!) class of people is qualified to do.

Whereas in reality the economy can (for the most part) run itself, and the government usually does more damage than good when it tries to "regulate" the economy by (amongst other things) artificially adjusting the money supply and interest rates. (First to "stimulate" the economy, then later to "keep it from over-heating." Then later to "stimulate" it again... and so on ad infinitum.)

But the first reason the economy is in such bad shape has little to do with the government. It is rather the tragic unintended consequence of the cumulative actions of so many normal, well-meaning Americans...

(Click here to read the essay)

nealr@corecomm.net