Squirrels Are More Intelligent Than Keynesian Economists!

Let us examine the difference between human savings and the savings of a squirrel. Apparently both anticipate the future! The squirrel’s action is very strongly driven by instinct; however if environmental conditions change significantly the squirrel will modify the size of its cache. Likewise, human savings will be modified as a consequence of conditions. Human intelligence, which can span time conceptually and which can unravel the numerous and various complexities of the world, enables humans to save purposefully. Simply stated, savings is a productive and vital aspect of life.

Under the current system of economic intervention, the proponents of intervention come to the bizarre conclusion that savings is harmful. For example, Keynesian economics — a variant of which underlies the predominant economic systems practiced worldwide — demonizes people’s choice to save. Their forced incentives to diminish savings is like force-feeding the squirrels this year only to find that their essential cache for the future is completely gone, ultimately leading to disaster.

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Profit Motive – Agent Of Continuous Economic Progress.

In the unhampered free market we have individuals, demand and supply, prices, production, and profit and loss all working beautifully to allocate limited resources to meet the unlimited wants as best as possible. Ultimately then, it is the profit motive of the profit seeker that acts upon the market process, stimulating production to increasingly meet the needs of the consumer. Therefore it can be said that the profit motive serves as an agent of continuous economic progress.

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The Fantasies Of Empirical Economists Are Destructive.

Those who are removed from the market and who are out of touch with how production needs to change to meet the demand cannot contribute anything. These are the empirical economists! They assume away the essential characteristics of how demand really operates in the market – that it is intimately tied to subjective valuation. That erroneous fantasy is the starting point of their arbitrary and destructive economic intervention.

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Human Law-makers Are Ego-Driven, Destroyers Of Justice.

Humans can discover the laws of the universe and of the Law-Maker but because of their finite minds only those who are ego-driven think that they can make laws, and those laws are corrupt and lead to injustices!

“As long as it is admitted that the law may be diverted from its true purpose–that it may violate property instead of protecting it–then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder.”
― Frédéric Bastiat, The Law






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Why Tolerate The Destruction of Profit – The Prime Generator Of Income?

Since profit is the prime generator of other incomes the destructiveness of monetary economic intervention on interest rates and on both entrepreneurial profit and the purchasing power component of profit have repercussions and reverberations throughout the economy.

Other types of economic intervention (e.g. regulations) also constrain prices or production causing either shortages or surpluses that cannot be remedied by the natural market processes because of the coercive characteristics of the intervention. This is what happens in the unnatural condition of a hampered economy because it is being subjected to this type of political corruption of the economy.






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Know The Three Profit Components.

Profit has three components. The pure interest component is shared alike by production for profit and by other investments earning interest. What is expected for sacrificing present consumption for future consumption is the pure interest component. It is an expression of the natural time preference. No action would be taken if this pure interest component is not present.

The second component is entrepreneurial profit which comes about because the future is unknown. Ex ante estimates for production and price are guesses with a certain amount of entrepreneurial profit potential. Astute entrepreneurial perception may lead to a lessening of the risks taken despite the uncertainty faced. Alertness then to the market reaction – ex post – is mostly where the entrepreneurial profit component is captured. For instance if excess demand is discovered early in the selling period a raising of the price would lead to increased profits making the entrepreneurial component of the profits larger. Of course also, a lack of entrepreneurial perception could lead to losses.
The third profit component is the purchasing power spread. This element is mostly seen nowadays as a phenomenon of monetary intervention which causes the purchasing power of the currency to decrease due to inflating the money supply. A profit margin has to be built into the ex ante price because it takes time before the product reaches the market. Ex post the purchasing power will have declined when there is inflation making real profits significantly less than nominal profits.







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Ethics No Longer Has To Be Left Off.

We are the lucky ones, the generation where with a click or a touch vast resources become available and the vast array of additional resources become known to us.

One of the things that this ‘brings home’ is a matching of interests with sources of inspiration and motivation and skill development. These are real resources that are available at no or low costs to everyone everywhere.

Instead of an obsolete and the lowest-common-denominator approach in a restricted, prison-like environment now it is fashionable and entrepreneurial to create a productive and friendly learning environment that caters to the unquenchable search after knowledge inherent in the human child and youth and adult when given the proper setting.

And within this nest of nurturance the formation of ethics can freely be encouraged. No longer is it necessary to be subjected to ethical issues being twisted to serve the State or special interest groups with political agendas.

The wondrous fruit of this is an ever-advancing civilization influenced by brightly enkindled individuals keenly possessing the skill of the independent investigation of truth and well grounded in the ethics of liberty and justice for all.

The goal of this Alternative Education: Education Alternatives blog is to hear about your efforts and share them with others. Feel welcome to submit essays that are expressive of your experiences.






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