Adam Smith and Keynes

Ok Boris, listen starting up the society by infusing loaned money into society by using Keynesian methods is a stupid idea.

This is the reason why.

First of all, Keynes was an economist and not a philosopher like Adam Smith. Adam Smith had a more eclectic view on his theories than Keynes, and actually did make ideas, that worked, like international trade.

Keynes is, in the hall of philosophers, not even mentioned. Why? Because his ideas are simple, does not really understand economy, and thus are poor to work with.

So, let us have a true view on economy.

What is economy? According to Aristotle, economy is political housekeeping. Making the budgets meet, and, as a good housewife, save a penny for the times of trouble. That is essentially what economics is.

So, how is it with the wealth of nations? According to Adam Smith, wealth of nations is something you make by trading freely. That is, the goods that Great Britain make can be traded with the goods other nations make.

The point being, that it is the GOODS that it is all about. That is the effect of MANUFACTURE.

See, this is where Keynes does see the ups and downs of economics.

Let me explain in a simpler and more true way.

So, economics means housekeeping of nations. Then how does that system of wealth creation work in this metaphore, you could say?

Well, in housekeeping you sometimes make something in the house, or rather pa does, right?

Pa can be a smith or a builder of furniture.

By making things, he earns a living for the household. So ma keeps the budget, pa makes things. See?

So in this understanding, in order to make money, do you lend ma money to buy things, or help pa in his smithy?

Keynes idea is to lend ma money, so that she buys new furniture and paves the path to the door.

My idea is to help pa DIRECTLY, so that he makes better things.


Keynes idea will work, it will make ma buy things from other households, but the problem is, as Adam Smith points out. Ma does not necessarily buy thing from WITHIN the nation, but often buy things over the internet, like …. from China.

So the money that was supposed to help the NATION on its feet, effectively only work with 50 percent of the money spent, and the rest goes to our competitors.

Thereby weakening the economy long term.

It’s an easy fix, but like any easy fixes. It will bring a little warmth here and now, but long term, as our competitors grow stronger because we gave them orders on borrowed money, it weakens us.

I don’t know the advice you get, but please fire them, and get someone a bit more competent. This is not worth you and my project.

Use philosophy, not economics.

G-d bless the will of Adam Smith.

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