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Economics is Really Rather Simple

Economics is really rather simple. Unfortunately so are most economists.

It is always useful to understand the precise definition of the words that we use.

Economics comes from ‘eikonomos’ which was the name of a treatise by Aristotle. It means the science of household management.

The basic rule of household management, which is no different from the management of a business or a country, is that one must spend less than one makes. Not the same, and certainly not more of course, but less, for one must always set money aside for emergencies.

Thus the basis of economics is spending less than one makes and putting away reserves.

And that is all that one needs to know about how our naïve and clueless politicians, bankers and economists have steered the world economy to global collapse.

The good news is that as the economy collapses so will The State.

Categories: Anarchy
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