May the Force be with You...

OK, you may think that force of the world stuff sounds a bit overblown, but consider:

• Interaction among people is based on exchange of values
• The sense of property is innate (watch small children at play)
• In an exchange of values, each party gets something he values more highly than that which he exchanges
• Any exchange of values is entered into voluntarily

Ah, but that last point is difficult. Some exchanges are entered into involuntarily, such as taxes. But on reflection, most of us would acknowledge that there is a good reason for taxation in support of roads and the common defense. What we really find objectionable is a particular level of taxation, or the way those taxes are spent, not the principle of taxation.

But I digress...

The basics of economics are at play whenever you buy gasoline, or groceries. And if you can but understand why spending money you do not possess is a Bad Thing, then you have reached a point at which the essential principles are understood.

Now comes a critical point.

The same principles that apply to personal spending (and debt) are equally applicable to government spending (and debt.)

Read it again, and think it over. It's crucial.

...and once you've got it, then you must logically determine that deficit spending is a Bad Thing, and that the Ponzi scheme known as Social Security is in great danger. But even more important, you have already learned as much as is essential to recognize when a politician is lying to you (which is almost always about money!)

More anon...