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Wednesday, February 16, 2011

Spending... What's the problem?

Spending...
Seems like that is all one hears about these days.
It goes like this...
Spending: "BIG" (as in Big Government) is spending too much, and on top of that is borrowing the money (deficit)
So then, exactly what is wrong with "spending" in the first place? As I see it, in general, nothing. Look at your own personal situation. Do you not "spend" just about every day? Fact is we all spend.
 However in order to spend it you gotta have it (MONEY)? You can earn it (work), or you can borrow it or maybe someone "gifts" it to you. But regardless, however you get it, you still spend it.
Now, when you spend it, then someone else gets it. You "BUY" something from them. They "SELL" something to you. Now that the "someone else" has money, then that "someone else" has the money to spend. This goes on and on, and after a while, if everything works well then "someone" will have money to buy something from you. Pretty simple concept. Right?
The system is just like a carousel. It - the money - just keeps going round and round and everything stays in balance.
 So, once again, in principle, what is wrong with spending? Well nothing... except for one thing... GREED.
 Seems like we humans are born with this disease (GREED). Some more so than others. Some of the real Greedy have figured out ways to "get"  - A LOT OF MONEY - and at the same time have figured out ways to not spend so much. Well, this process puts the carousel out of balance to the point it stops revolving.
Probably one of the best examples of this is the game of "Monopoly". Probably most of you have played it before, and if you haven't, you should. Anyway, as you recall it goes like this. EVERYONE starts out with the same amount on MONEY. As the game progresses you "BUY" things. But to "BUY" you have to "SPEND". Obviously another player "gets" some of your money. There are also a few "Entitlements" in Monopoly that allow you to refresh you money, like when you pass go, the Bank (example BIG), gives (spends) some money. The game goes on and on this way lasting for perhaps hours, maybe days. But, and here is the BIG BUT. In the end, everyone except one player goes bankrupt, and one player, and the Bank (BIG) ends UP with ALL THE MONEY. The paradox is that the one player, and the Bank (BIG), are filthy rich, but to no avail as all the other players are broke. So the filthy rich (and BIG) is stuck with all the money, with nothing to buy, as there is nothing to sell, so all that money is useless, so... GAME OVER.
Fortunately with Monopoly you just start a new game.
As a nation, have we reached "GAME OVER"?

Just Say'n

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