Let me review some basics with respect to Common Sense Economics. First know that using common sense is not automatic. First one must learn to recognize and remove the euphemisms of life, which distort our thinking. Without this first step common sense hurts more than it helps. Wrongly define institutions people and activities and common sense generates wrong answers. So, as human beings, are we special? Not hardly, but we all unwittingly act on the basis that we are. Mankind is basically good? Mankind is defined as good, but a quick glance at history reveals that it just ain’t so. Bad? No, lets just go with neutral. People act according to the incentives in front of them. Incentive based behavior is modified by various constraints. Nothing more need be said. For the sake of comfort and happiness, after our thinking is over, we can return to the world of euphemisms. The next financial crisis is close at hand and it is going to take all the wits a person has just to survive. Most Americans will lose everything they have.
Knowing that the economy is going to collapse doesn’t take much intelligence. By using common sense, without the handicap of euphemistic definitions of people and everything else, all we have to do is understand that over the last three decades, free market attributes have been removed from the structure of the economy. The rate at which our free market economy has been dismantled over the past five years makes it highly like the collapse will come very soon.


Euphemism Mountain

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