The Way Government Works

What citizens assume government is doing and what government actually does are not the same. The most common use of government is that it serves as a place where people go to get what they want and have others pay for it. At any moment, activities within the halls of any government virtually all activity is devoted to that one activity. In totalitarian governments the question of who gets what is not open to open debate.  Still there are constant efforts to get next to  and suck up to a dictator or king. In democratic based systems there are constant efforts from all directions to try and live off the efforts of others.

Citizens, especially in the United States, treat government like a fair minded benevolent parent. President’s and elected representatives are imagined to be working tirelessly to promote their constituent’s principles.

It is not surprising that folks have this distorted image in their minds of what government really does. All through school, the benevolence of government is never questioned. In school, cooperation is presented as normal. Children work in groups. Competition is discouraged. All adults are defined as there to help them.

In practice, all persons who approach government out of self interest. Those elected and the voters are all motivated by self interest. Your senator or congress is there to get what he can for himself. Your president is not there to help you. Your president is there to help himself. Legislation is not passed for the benefit of the country. Legislation is passed for the benefit of those who have the money and power to influence elected officials.

An economic crisis is coming. What ordinary people do as a result will be critical. Unless people very quickly understand what government is used for, we are likely to come out worse off than ever after the crisis runs its course. It is a huge handicap to enter a period of severe stress and have people acting on the basis that government is benevolent and has magical powers. The reality gap we face is huge.

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.