Monday, June 10, 2013

The disposition of our situation

If countries would become rich by their population and public sectors spending more money, there would be no poor countries as each and everyone can figure out how to spend money.

Expenditure of funds not based on a relative increase in value, means nothing but inflation of capital and actually destroys what savings we have, eventually rendering the money worthless. These savings are incidentally the very same savings that are needed for investing, which in turn is what is needed for possible future wealth.

The discussion should for this reason concern how the necessary revenue is created in order to pay for the states primary undertakings, here under in my opinion, a clearly delimited welfare state.

Understanding these facts does by no means imply that one does not care about all those in desperate situations just now, unable to find a job and living life on stand-by. But continued escapism will only hit those at the bottom even harder. It is only a realistic outlook than can achieve the sober politics which can bring the West out of this nasty predicament of ours.

We have been living on loaned funds for decades and have become accustomed to rising living standards paid for through the expansion of credit. Entire generations perceive life in abundance as sensible, meanwhile much of the industry has moved abroad. It is time we start living by what we earn.