A simple video about how economy works
- Thread starter asadqudsi
- Start date
Eyeaan
Chief Minister (5k+ posts)
It is not Economics 101 but --- Keynesian Economics 101, which may have some truth for the monetary policy but for economy??? Not so? Maybe a good an explanation for economic cycles in a centralized economy.
Start with
--- Say's Law of classical economics.--- Zero production is zero demands and not the other way round.
--- Buyers and seller rarely know the 'price and costs. Market is inefficient.
--- Net wealth (hence net worth of the money in the long run,) is not the amount of money in circulation but net worth of the production and productive element including the productivity of the workers. This is overlooked by the monetarists for a reason.
-- Not quite true that borrower( banks) owns the money it lends - it creates money to lend against the future productivity - but also create additional money for its own profit from future payback. that's how the banking works.
Start with
--- Say's Law of classical economics.--- Zero production is zero demands and not the other way round.
--- Buyers and seller rarely know the 'price and costs. Market is inefficient.
--- Net wealth (hence net worth of the money in the long run,) is not the amount of money in circulation but net worth of the production and productive element including the productivity of the workers. This is overlooked by the monetarists for a reason.
-- Not quite true that borrower( banks) owns the money it lends - it creates money to lend against the future productivity - but also create additional money for its own profit from future payback. that's how the banking works.
The_Choice
Senator (1k+ posts)
The_Choice
Senator (1k+ posts)
