While I was in high school I took AP Economics from a very capable teacher. We went through many topics in order to understand the complexities of economics. After thinking about it though economics are quite simple. There are a few simple rules.
1. People want to control property.
2. People will do the easiest thing in their belief system to control their desired property.
3. People will complicate economics in order to cheat.
Let us look at some examples.
http://www.huffingtonpost.com/2009/06/30/senator-inouye-helped-his_n_223629.html is a great example where a senator found it easier to get a bailout for his bank rather than invest wisely or accept the loss and earn more money and it was in his belief system that it was OK to have the taxpayer bear the burden of his banks failure.
If we analyze many other situations we can see that this is the case. Look at a lobbyist. He wants to control property so the easiest way he sees is to influence/bribe a politician through things like campaign donations. The politician wants to control property and the best way he sees it is to run for office and get elected. The best way he sees to do that is accept help from lobbyists. Also there may some underhanded dealings which go on but even without them they are both doing the easiest thing they know how in order to control the property.
The problem is that when government exceeds its bounds many people will look at government as the easiest way to obtain property, especially when they don’t have any moral hesitation to taking from others. Unfortunately for the taxpayer we are seeing more and more of this today. Banks find it easier to take from the taxpayer than make wise investments, life insurance companies control our property and send their executives out on lavish retreats despite poor performance, and the federal reserve (a group of private banks) is giving billions away and won’t even say where it is going.
Let’s stop this insanity by at least encouraging our Senators to audit the federal reserve and see what is really going on. Rob Bishop and Jason Chaffetz have already signed on. So should Hatch and Bennett. Please call them today and ask them to support SR604. http://thomas.loc.gov/cgi-bin/query/z?c111:S.604: (It is actually quite small and not the usual 1200 pages full of hidden goodies).