Rich Hart Explains the Strange World of Economics: The Devil is in the details

One of the most perplexing aspects of human culture is economics. Most people do not enjoy economics. Economics is a large, confusing tangle of numbers and obscure facts. This is the reason that thieves, looters and other predatory parasites linger in the midst of economics, because there is money to be made in the obscurity. When the average American would prefer to stand in their garage with their friends or family and watch football or NASCAR on a TV sipping on a beer, they are all too happy to just throw money at the government and hope everything works out. But it doesn’t because waiting in the confusion, in the rules and regulation, are the hands of many devils hoping to pull a fast one over on people everywhere to gain wealth themselves.

Paul Ryan’s economic plan is trying to solve this problem, and save the country from financial ruin. Many like Ryan on the inside understand that the looters who are putting America in the financial situation it is currently in, have little loyalty to the United States. The looters would be just as happy to live under United Nations control on an island in the Bahamas or in Nigeria, so long as they are wealthy. Those are the people who are against Paul Ryan’s economic plan.

I had the pleasure of meeting recently Paul Ryan’s economics professor, Rich Hart of Miami University. I was very impressed with Mr. Hart’s knowledge of Keynesian economics and overall ability to take a very complicated topic and explain it in a relatively simple way. So it was a pleasure to get Mr. Hart on with Doc Thompson to give half a million listeners a basic, free class in economics that some of the brightest in this country could only get by taking Harts class at Miami University, as Paul Ryan had.

In my mind Paul Ryan’s plan doesn’t go far enough. To me, if the goal for a smaller government is desired, then naturally employees of the federal government will be decreased dramatically, which has to happen. As proven with the school budget issues, it is labor costs that are the big budget breaker in public school. Unions took advantage of the housing bubble. But people were willing to vote in favor of higher taxes because the value of their property showed high on paper, so because Americans are generous by nature, they passed their local levies. They didn’t pay attention to the outrageous pay increases the teachers gave themselves, or the police and firefighters. That group of public employee is no different from congressman and city council members that give themselves pay increases. Yet here we are, in a budget crunch, the housing bubble burst so taxpayers have to look at the actual value of their money, and are learning that they’ve been scammed, and the feeling isn’t pleasant.

On top of the high cost of the public employee, there is the cost of corruption. Lobbyists are a major problem. But waste is the worst. Medicare alone costs over $60 billion each year. There is simply no way to balance any kind of budget when so many people are benefiting off the waste and corruption of these major government programs. You can read the source article for the $60 billion in waste here:

 

http://abcnews.go.com/Nightline/medicare-fraud-costs-taxpayers-60-billion-year/story?id=10126555

 

If you want to know who the thieves are, just listen to the people who criticize any kind of reform such as what Paul Ryan proposed. Paul built his plan based on the sound economics of one of the countries finest economics professors from one of the countries finest universities. Are those critics against Ryan’s plan because the economic theory is wrong? No, it’s because the critics are using Keynesian economics to plunder money for themselves and they want the money train to keep on rolling at tax payer expense.

Keynesian economics also called (Keynesianism and Keynesian theory) is a macroeconomic theory based on the ideas of 20th century English economist John Maynard Keynes. Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle.[1] The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936; the interpretations of Keynes are contentious, and several schools of thought claim his legacy.
Read the rest of that article here:

http://en.wikipedia.org/wiki/Keynesian_economics

John Maynard Keynes, 1st Baron Keynes 5 June 1883 – 21 April 1946), was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments. He greatly refined earlier work on the causes of business cycles, and advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions. His ideas are the basis for the school of thought known as Keynesian economics, as well as its various offshoots.

http://en.wikipedia.org/wiki/John_Maynard_Keynes

Keynesian economics does not work as explained by Rich Hart. It can now be officially declared that Keynesian economics is the economics of socialism which Britain was experimenting with under thinkers like Keynes. Public officials like Obama, and those who work in modern government know that Keynesian economics does not work, yet they support it because they either desire the results of a collapsing economy, or they have no stomach for the change in the status quo.

This isn’t hard to imagine. Most people work in an occupation where they know things are wrong, but they proceed on because they don’t want to upset the applecart of their income. In politics, we’ve made public service so lucrative, so highly paid, that politicians will lie, steal, cheat, manipulate, whatever it takes to keep their job. They’ll do this because they tend to be low quality people to begin with, and could not in their wildest dreams perform a private sector job and make as much money as they can in government. Look at Anthony Weiner and how he’s holding onto his job with both hands. He’s doing that because he simply couldn’t work anywhere else. Who’d hire him? A lobbyist? Maybe one of them, but he couldn’t work for any legitimate company. And he knows it. Weiner like the rest of his co-workers in congress and the senate know that Keynesian economics is their ticket to salvation and the good people who pay their salaries don’t want to deal with the complicated nature of economics, so the scam is never dealt with, and the looters know it.

If there is ever to be any real reform in the United States, American’s have to take some interest in economic activity. Citizens need to push to simplify the terminology so they can understand economics, they need to force the budgets to become smaller so waste and corruption cannot be so easily hidden in the details, and this is something that must happen, if any preservation of America is to take place.

So go back and listen to Rich Hart again, and again and begin your economic education so that you can begin to understand the forces that are working against you and why, because it will take more than one or two people to fix this problem. It will take a majority of the nation. This is why the looters fear the Tea Party, because if the nation begins to pay attention, the game is over for them. They’ve already made their bets that people will openly chose to stay asleep. Only time will tell what fate delivers.

Rich Hoffman
https://overmanwarrior.wordpress.com/2010/12/04/ten-rules-to-live-by/
http://twitter.com/#!/overmanwarrior
www.overmanwarrior.com

6 thoughts on “Rich Hart Explains the Strange World of Economics: The Devil is in the details

  1. That was a great article and that’s what I been saying. Democrats intentionally collapsed the banking system.

    From the first year budget when the democrats took control of congress in January of 2007. There first budget was to be passed by April 15 of 2007 and started October 1, 2007 and ended September 2008 the month the banks collapsed.
    What is so important to know is that in the prior 5 months before the bank collapse in September 2008 the democrat’s on and off budget deficits were already averaging $130 billion a month.

    The Federal Reserve borrowed $683 billion in that 5 month period prior to the bank collapse. The Federal Reserve dried up the banking system financing deficits of the Democratic Party.

    This spending level continues at the same level in the entire 2011 budget at $130 billion each month. It was the runaway purposeful spending of the democratic congress that caused the banks to collapse not the bankers as everyone has told you.

    I know you want to believe it’s the banks fault and their greed, so does the government but who controls the banks? The government does. http://wp.me/pO1Ho-6Z

    To see the whole story and a table of monthly spending see my website. All information was taken from Federal Reserve, CBO and department of labor and statistics.

    Liberal progressive Democrats intentionally collapsed the banking system to destroy the country and the constitution http://wp.me/pO1Ho-6Z

    Like

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