Economics In A Nutshell

Who are these people who have attained sage status, albeit unworthily so? Why, they are the current era's crop of university trained economists. Experts, they are referred to as being. Why then, are each of them seemingly, "Surprised", at the sudden figures they pore over? All this, while exclaiming that the news they are reporting qualifies to be placed in the "Unexpected" category. Never, it seems, are they satisfied with the results of economic activity on a day to day basis. Meanwhile, the economic engine that is American made, and born, hums along sniffing it's nose at the gloom and doom prognosticators who can't seem to get anything right.Why do we suppose that it is that way?

To begin with, there are several schools of economic thought vying for, no, make that clamoring for, their prominent place in the public psyche. Traditional economists who tell us not so much what their version of economics means in terms of balanced federal budgets, and the wisdom of tax levying strategies designed to keep us "whole" as a country, omit something very important to the boiling stew. They spend an inordinate amount of time trying to convince us that the "new Kid On The Block", supply side economics, does not fufill it's promises to the people, and to the government either. Increases in tax revenue flowing toward the treasury, are an anomaly, and not verification of the supply side argument when implemented.

One need not possess a graduate degree to understand what it all means in the end. Much like the statement by Senator Obama which proclaimed that if American drivers just "inflated their car's tires to the standards set by the auto industry", why then, we would save the equivalent of three and a quarter billion barrels of crude oil per year. False argument, false premise. First, there is an assumption that all Americans are driving vehicles with under inflated tires It seems we, as Americans, just can't get a break from politicians who apparently believe we are that dumb! Congressional don't- drill- types use this technique to look down upon us from even further on high.

As the economists relate to the economy, they are blind mathemeticians at best. They construct a tidy left side of an equation, completely omitting the right side all together. For example: If money raised by taxation is a part of an equation, it should appear thusly: TMR= ? The question left unanswered, is just how much money do the Congress, and the President plan on spending? That figure, when known, is inserted on the right side of the above equation, and Voila!, a balance is struck. Well, sort of. Truthfully speaking, the cart has been put before the horse. The government decides what it is going to spend, then tries to develop a taxation scheme to "pay" for it. Home budgeters do not have this luxury. They work with a finite set of dollars to spend, THEN make plans to accomodate the perceived needs. Why, there may even be times when spending itself is simply not an option for most homeowner families.

So, until the economists, and the government types understand that any equation contains TWO equal parts, there will continue to be the gasps of "I'm surprised!", and "This was certainly unexpected!" Bear in mind that the entrepeneur, in addition to pursuing his dream, must also keep a wary eye on things done governmentally, and his ears to the ground, listening for the encouraging sounds of propulsion for his ideas. Smart cookies, these American entrepeneurs. Hmmm...the idea of a political entrepeneur is beginning to sound just a little better to me.

For a better idea of basic economics, go to: www.whereisallmymoneygoing.com A word of caution, you won't find the answer to your question there either. Might be worth a Google prize though.

Now, back to the educational chores, and to my newest best friend in the whole wide world.