The Cycle of Money

When most people accumulate monetary wealth, they tend to spend it in the economy and exchange it for goods or services.  It adds to the complexity of the economy and, thus, drives the production of wealth (as defined by goods and services, not just monetary gains for the employers and merchants).

When financiers have money, they tend to invest it in projects that generate more value in the economy.  Unfortunately, they presently define that value in very narrow terms that are artificial to our needs as humans, and thus, misses out on satisfying their actual needs as human beings in light of common reality.  Unless the definition of value is redefined, in terms of practice, function and logic by the financiers, the entirety of the species will be killed off for the sake of their small self-monetary “gain”.

When the employers and the businesses themselves have money, they do not actually spend it on anything of value, unless it is reinvesting in the production quality or quantity of their business.  They have demonstrated that they squirrel the money away or spend on excesses that do not add production value to the economy itself.  While it is a sign of the value of the economy when their revenues are high, I would agree with Adam Smith’s reading of economics where he says that, and I quote, “…the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society.  On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin.”  The reason for this is because they are both compensating their workers well for the work that the workers put into the production of the economy (based on a high demand for labor), producing a large amount of supplies, thus lowering the price for goods and/or services in the economy.  The  profits of companies, or a combination of companies, does not reflect the real value that is being produced by the economy for the human society in which we are all (including the business leaders) are living in.  Their immediate personal interests run counter to the public’s needs and interests, and so, like predictable humans, they choose the shorter, more immediate route to personal prosperity, rather than submit themselves to the higher cause that is in their interests as well.  That is precisely how it is that society, acting through government, becomes necessary in order to preserve the flow of money and exchange throughout the whole of the economy.  Without these kinds of regulations on the economic, social and political power of the employers and business leaders, the economy would simply become an exploitative leech on the body that is human society.  Eventually, human society will react violently to the excesses and trespasses by the business and financier classes, destroying either the polity that allowed it to come into being, and, in the process of violence, destroy the economy itself in its entirety.

War does not help the economy in the places that it occurs.  As a matter of fact, it tends to destroy it through the cessation of order and predictability that’s needed in order to carry out exchanges.  One can look at the economy of Japan during their Warring States Period and afterwards for an excellent example of this.

Peace leads to prosperity, war leads to destruction of that prosperity.

It happens on this level of being empirically, not on any imagined or hallucinated plane of decision produced by willful or unwillful ignorance.

And it’s just a question of some people’s brains not being able to sense or realize this larger reality that is around us, that leads to most of our problems, whether they’re willing to accept it or not.

Think about it.

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