Is Economics Too Complicated?

ComplicatedThere is a tendency within human beings when faced with economic considerations to immediately and without any reflection state “economics is simply too complicated for me!”

What is interesting though, is that economics isn’t really at all that complicated. Let’s look at what economics is, in it’s very essence – it’s the exchange of goods and services – it’s about that I want something that you have, and to get that thing I give you MONEY. That’s really the gist of economics – I GIVE you money and I accordingly RECEIVE what it is that I want.

Taking a look at the state of world from this very simple understanding of what economics is makes the picture of what is actually going on much more clear and specific. Because, what is happening in the world is that more and more people are thrown into poverty, more and more people are unable to afford to basics required to survive, which thus implies that they are not able to GIVE money and accordingly RECEIVE goods or services.

What happens when more and more people are unable to GIVE and consequently RECEIVE is that poverty widens, because what is easy to see, is that this GIVE and RECEIVE point is not isolated to individuals alone, it’s a circulation that takes place, which means that when one person GIVES money it empowers the RECEIVER to in turn GIVE and so forth. This is the basics of economics – a constant exchange of the things we need, want or desire – which fuels the system and makes more people able to participate in the GIVING and RECEIVING.

In our current economy, what has happened is that a lot of people have been excluded from this cycle, and they accordingly do not have the means anymore to GIVE and the outflow is that the economy shrinks and thus disables even more people from participating fully in the economy – shrinking the amount of money available as well as the amount of goods and services available.

This is what is happening in our world today and this is the reason as to why our economy is continuously becoming less and less effective. The basic problem is that people do not anymore have the means to give – they do not have the means to participate in the cycle of GIVING and RECEIVING.

The solution to this problem is very simple – it is to give to each individual in the economy the means (money) to participate which can be done through implementing a Living Income Guaranteed; this will allow for all to yet again become part of the cycle of GIVING and RECEIVING, creating more jobs, more opportunities, more money, more welfare – and overall – a less stressful environment for all.

A documentary that explains this relationship effectively is Inequality for all which I suggest that everyone watch.

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