The Supreme Inviolate Law of Economics

Author David W. Franklin

Hundreds of PhD’d Keynesian, Liberal, and Collectivist economists have for decades, written books in voluminous quantities, teaching, touting, even ‘showboating’ their alleged superior expertise in assisting governments with how to manage the redistribution (stealing) of Real Wealth from one productive class to a non-productive class of citizens.

While they have prattled on in those texts with pseudo complex minutia details of macro and micro economics, each one has deliberately avoided addressing The One Supreme Law of all economic truths, which voids every statist premise upon which they rely.

This One Great Supreme Law which governs and rules over all such unnecessary, detailed foolish is:

“CONSUMPTION CANNOT EXCEED PRODUCTION!”

That is, you cannot eat a quantity of a Thing greater than which has been produced.

IF…..

If you labor by growing two apples and eat them, your production and consumption are in balance.

If you labor and grow two apples and eat them, but desire to eat a third apple, you must do one of the following:

1. Remove an apple from your “Apple Savings account” or apple storage, which represents production you set aside for future consumption. This is called SAVINGS.

2. Exchange with another apple producer (laborer) some Thing of Real Wealth value you also labored to produce, which that second grower will accept in exchange for the third apple he labored to produce.

3. Wait for night to fall, stealth your way over to the orchard of the second apple grower and steal that third apple.

4. Elect a politician, who by edict of legal tender laws, will force the other apple producer to surrender that third apple for a mere piece of paper that required virtually no labor to produce.

WARNING!

IF…you choose No. 4 as your means to get that third apple, you will need to lobby your politician to steal two apples instead of one. This is necessary because otherwise, by the time you get that third apple in your hands, the politician will have taken a huge bite out of it. In fact, if you demand he steal only one apple for you, by the time it passes all the way through government, the experience is that you may end up with only the core. So be certain to ask for two.

That way, the worst case scenario may be that you at least end up with the core of an apple, and perhaps only a single bite out of the fourth one. But there are no guarantees. Many in line before you have requested the theft of two apples and ended up with only the peelings.

And so it is with the Greek Government. They have, for a period of time, given out paper “claim checks” on the Real Wealth of “apple” producers. The “free” apple program went on for many, many years.

Unfortunately for the Greek government, when the apple producers observed that non-apple producers were receiving and using ever increasing quantities of mere paper to obtain their apple production for next to nothing, they stopped producing apples and applied for the same “free” apple program.

Production of apples begin to decrease, then actually plummet! At the same time, apple consumption soared. UNTIL…….the point was recently reached wherein the number of “claim checks” issued for apples exceeded the quantity produced.

And that is when the Great Supreme Law of Economics came into effect. Describe it, if you will, as Natural Law’s own “economic interventionist” policy.

This is where the Greek government and its leading statist economists find themselves today. Through the “free” apple program, they created a politically loyal sea of apple consumers who in turn, repeatedly voted them into office for the favor of continuing the “free” apples program. Having now become dependent on the “free” apple program for sustenance, they are understandably bitter, even angry that there are no longer enough apples to eat.

Is more debt the answer? Will borrowing at interest, the savings of others in order to buy more apples for the short term, provide a secure source of apples indefinitely into the future?

Of course not! Even a statist economist understands the mathematical consequences of compounding interest without an offset of compound production. It’s called BANKRUPTCY!

Sounds like the future of America, coming to a theater near you?

Will reducing the amount (Gov’t spending) of apple claim checks solve the problem?

Of course not! What the Greek government should do is announce the commencement of a Greek version of the “Johnny Apple Seed” program. That is, legislate out of existence the free apple program and pass laws mandating that all apple eaters immediately start planting and caring for apple trees.

PS. Having managed an orchard of more than 2000 peach and apple trees, I regret to inform the Greek government and their sea of Apple loyalists, that after planting, it will require two to four years of TLLC (tender loving labor & care) before any significant quantity of additional apples will be available for harvest, weather permitting.

It is going to be a long, hot “fruitless” summer for all those apple eaters in Greece.

Fini

Related posts:

1. THE RICH GET RICHER AND THE POOR GET POORER

This entry was posted on Friday, May 7th, 2010 at 12:40 pm and is filed under Authors, David W. Franklin, Economics, Opinion, Politics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.