Economics Is Simple … The Fat Cats Just Want You to Think It’s Complicated So That You Won’t Demand Change

Thursday, December 23, 2010
By Paul Martin

by George Washington
zeroHedge.com
12/23/2010

Economics and finance seem like complicated topics, and so many people “leave it to the experts”.

However, these topics are actually simple, and if people hear a clear explanation, they will be able to form an opinion about our current economy and the government’s response to economic challenges.

It will be easy to understand the economy if we think of money as water. Links showing that the analogy holds true with the economy are provided for convenience.

Let’s imagine that there is only a limited amount of fresh, drinkable water in the U.S. (which is true), and that a handful of say 5 big water companies control the rights to 90% of the water in the country.

Let’s further imagine that the water companies – wishing to make more money – expand beyond their traditional water business, into mining for oil and gas. Indeed, the oil and gas mining business becomes so lucrative that it soon dwarfs the size of their actual water business. They keep their traditional water business, but soon also become the largest polluters in the country.

They dig for oil and gas right around where the aquifiers are where they pump water. Unfortunately, they are greedy and cut corners, and end up polluting all of the aquifiers with toxic crude petroleum compounds.

The water companies loudly tell the government that this pollution was “unexpected” and simply a temporary “water-flow” problem. They jump up and down and yell that – unless the government “bails them out” by giving them more water – the entire water distribution system in the U.S. will fail, and Americans will suffer a water shortage and severe thirst.

The Rest…HERE

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