Busted: 9 Economy Myths
Reinflate the Old Economy? Get Real!
Old Economy: The measure of a healthy economy is a growing GDP.
Get Real: A healthy economy meets real needs within ecological limits.
Old Economy: All you need is money.
Get Real: You can't eat money. What we need is healthy families, communities, and ecosystems.
Old Economy: Booms and busts are inevitable in a modern economy.
Get Real: The boom/bust cycle is a result of letting banks create money.
We usually think of money as neutral—it allows buyers and sellers to make deals, and that's good. But it's not neutral when we give private banks the right to create money that we taxpayers have to borrow. It gets worse when banks get entangled in exotic speculation, creating trillions of electronic dollars that inflate financial bubbles. Then—because the paper wealth is disconnected from the real economy—the bubble pops, and finances crash. The banks don't know how to untangle the mess, and they stop making loans. Even when things are going well, there's this little problem about interest-based money—it concentrates more and more wealth in the hands of those lending it at the expense of your average homebuyer, credit card holder, or tuition-paying college student. In the new economy, there are better ways to get money circulating.
See Economy Myths
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