Sunday, January 4, 2015

Economic Stability

To think about economic stability maybe one should ponder what makes the universe stable. Our universe is expanding at a very rapid rate due to dark energy. As the universe expands there is more dark matter and therefore more dark energy is making the universe expand faster and faster. This sounds like a very unstable condition for our universe, so what makes it stable? Many physicists initially theorized a rapidly expanding universe would pull the earth and all matter apart. But that is obviously not what is happening. One theory the universe remains stable is because of symmetry. Some physicists believe there is an exact replica of our universe located within dark matter that is invisible to the eye. The hidden universe within the dark matter is not only an exact replica of our universe, but the spin and polarity of all matter are opposite and that is what keeps our universe stable and keeps our laws of physics from breaking down. I have written in the past about the strength of symmetrical objects and our constant universe. Now, I would like to expand that conversation to our economic system.

It sounds harsh, but a stable economy should have as many wealthy citizens as poor ones – this is what creates a symmetrical Gaussian curve (of course there should be a much larger population of middle class). The liberal, socialist, or communist model for a stable economy is everyone having the same amount of wealth or income. This would create a very unstable impulse curve teetering to the right and left and ready to implode on itself.

Why would this liberal utopian economic model be so unstable for the economy? Let’s think about it; if every family in the United States made a median income of 60 thousand dollars annually that would force the government to levy huge taxes on the wealthy. However, this would eliminate all wealth for businesses to expand and therefore no jobs would be created. In fact, millions of jobs will be lost because the government taxed all monies used to pay employees. GDP and consumer purchasing power will all but collapse. And of course no individual, family, or business will continue to work hard if they can only keep 60,000 dollars annually. Hence, this would finally lead to the elimination of all tax money for the government to exist. The end result is that the economy will collapse.

The U.S. spends over 1 trillion dollars annually to wipe out poverty. This should be enough money to give 16 million families of 3 persons 60,000 dollars annually, but that has not happened. Instead, poverty is increasing, the number of wealthy are decreasing, and the disparity between the rich and poor is getting worse. This is the result of the government trying to force the economy into an unstable state (our economic income model is becoming more and more skewed towards poverty). Our economy fights to remain in a stable state despite the ignorant interference of the government, but if our government succeeds in continuing to skew our economic income model towards poverty then our economy will collapse, similar to the Greek economy. Even an economic income model skewed towards the wealthy is very dangerous. This situation creates massive inflation and economic bubbles that will collapse as the economy searches for stability.

This is not rocket science, but commonsense. Symmetry is what keeps our universe stable, it should come as no surprise that symmetry is what keeps our economy stable.

1 comment:

  1. Very interesting, Patrick. I never looked at it that way before. The dynamic of humans trying to micro-manage the economy and create what they think is the ideal balance of wealth always reminds me of the way in which water seeks its own level no matter what obstacles you try and put in the way. People are somewhat the same. Some will learn to get around the obstacles, at which point their potential is enormous. Others will be unable to find a way around the obstacles and will find themselves blocked in with nowhere to go. Human nature has a way of finding its own equilibrium and we end up with rich, poor and middle no matter what; it’s just that the winners and losers are changed. I think the meddlers on the Left understand this, and their meddling is less about making sure all things are equal and more about diverting income to themselves. But then, I am the ultimate cynic!