Money is based on production efficiency.

Catholic Fundamentalism believes that the gold-based currency of yesteryear has been replaced by a new currency.  The new currency is based on production efficiency.  The graph below provides evidence of that theory:

gdp

From 2002 until 2008, America’s jobs and production tracked closely.  In early 2009, the number of people employed began to drop while more goods and services were produced and provided.  Since the beginning of 2010, the number of workers has been tracking the goods and services provided, but with six or seven million fewer workers.

It’s worth examining the chart to verify that number.  It is one of the most astonishing things in history.  It shows, among other things, the revolutionary effects of automation in every area of modern life.

How revolutionary is this?  It has never happened that the number of workers drops by six or seven million and the amount of goods and services increases by six trillion dollars.

Our government has been printing and spending a trillion dollars a year on “quantitative easing”.

Some will want to know, “Where does the other five trillion go?”

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Answers include  “Unemployment and welfare.”,  “It sloshes around.”, “It’s none of our business.”, “Campaign contributions and other bribes.”, and “I don’t care.  I just want more.”

As always, squeaky wheels get more grease.

If Republicans understood that there is no such thing as a deficit when production efficiencies are high, they wouldn’t mind sharing.  As it is, they  live in the past, some of them actually wanting to return to the gold standard.  When Democrats call them “selfish”, they can’t meaningfully respond.

If Republicans were good, obedient Catholics who loved their neighbors, they would understand and want to help their less fortunate neighbors with the huge largess being generated by modern production efficiencies.  With more Catholics, democracies could also stop abortion and defend ourselves against Moslem invasions.  But, most Republicans are Protestants, and are too self-righteous to do anything but go on being self-righteous, preferring their tiny, dying schisms.

As long as printing money does not exceed the savings that automation brings to providing goods and services, it should continue.   Some look to The Church for guidance, and understand that we should share some of the incredible savings with those who are no longer needed, or may be unable to participate, in the production of goods and services.

That sums up modern economics:  Money is based on production efficiency.   With that out of the way, we can focus on saving our souls.

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