Understanding the United States Economy

Don’t think for a minute that government economic policy, Federal Reserve and other is beyond the understanding of the average person. Don’t misunderstand, the math is hard. Most Americans have never studied advanced calculus and statistics. What needs to be understood is that it takes complicated math to describe the even the simplest activities in society.

In looking at the economy, basic ideas are about the same in sophistication as are plays drawn in the sand in a sandlot football game. The chances that any of the plans will benefit society are a lot slimmer than the sandlot football play resulting in a first down.

So, what is going on in the economy? What is determining global economic activity? All economic success today is dependent upon the stock market moving higher. If stocks drop, it is curtains for the United States economy. The sandlot Federal Reserve plan being used says that “rising asset prices cause economic growth.” Secondly, as wealth and income grow, the expectation is that the pump will be primed, the weather eventually be fine and everyone at the bottom can dive in and all will be happy.

Of course, I disagree because I actually understand economics. Government economists may or may not understand economics. It doesn’t matter either way. Government economists are payed to justify political initiatives. The most brilliant person in the world has no utility to society if he is dishonest.

How about proof? As a rule, economists are never expected to prove anything. That is with the exception of economists who disagree with official public policy. What I offer is a complete understanding of human nature. When government policy changes, incentives of every citizen country change in response. Really smart people, much smarter than those who make policy, immediately start gaming government’s decision. There is no chance at all the population as a whole will reap any benefit. Again, government is about taking not giving. As long as the recovery continues, wealth will become more and more concentrated at the top. The recovery will stop when the Stock Market finally collapses. An actual depression will occur. The economy will have failed and along with it, our broken system of self government.

The deep state is moving the stock market higher because of the consequences to them of not doing so.

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