June 22, 2010
Every day, we watch the news and see the talking heads go on and on about the same stuff: Obama is spending too much; Bush spent too much—we’ll stop spending over here, and use the money from over there to fund this project over here.” It’s the same argument, and unfortunately, it’s a huge distraction. Yes, Bush spent like a drunken sailor—Obama is continuing the spending. But to truly understand where we are economically, and where we’re headed and how to actually achieve economic prosperity again, we must first understand money, where it comes from, how the United States money works, and above all, we must define clearly the difference between Monetary Policy and Economic Policy.
First, Economic Policy. This is the easier and the less important to define, and unfortunately for this very reason, this is the policy that politicians and the talking heads on corporate news networks and state-run media outlets like to bicker about. Simply put, Economic Policy refers to the actions that a government takes in the field of money. How are they spending the money? How much goes to our ‘national security’? How much goes to this war as opposed to that war? How much will we ‘invest’ in green jobs? How much can we afford to ‘give back’ to the taxpaying (and non-taxpaying) citizens? These are the kinds of questions that deal with Economic Policy, and these are the only kinds of questions that we’re hearing people in the news ask.
Broadening the definition, we can typically say that there are two sides of Economic Policies: Liberal and Conservative. Using the current definitions of the day, ‘liberal’ would refer to a government spending more, and ‘conservative’ would refer to a government spending less.
It’s all a hoax.