The Power of Money

Explain to me this.

Economists and modern economic theory have crashed the figurative Titanic. So why are we expecting them to fix it? I’m pretty sure they didn’t mean to crash it in the first place, so they apparently don’t know as much as I do about why it crashed.

What I know, and any farmer or rancher knows, is that nothing can grow forever. Even Jack’s beanstalk stopped growing when it got to the castle, and that was magic. Modern economists can not do magic. Modern economic theory, according to the one course that I took, is firmly grounded in the shifting sand of non-sustainable growth. Money is not magic; nothing on this earth can grow forever.

Ask Madoff.  Or Stanford.

So why are we surprised when it doesn’t?

The Power of Money

The New York Times , showing a photograph of a very happy new Secretary of Education, Arne Duncan, points out the risks that accompany the power of disbursing a $54 billion stabilization fund that is “intended to prevent public sector layoffs, mostly in schools.”

Mr. Duncan has said: “I want all of us to work hard enough and smart enough to take full advantage of this, because it’ll never happen again.” Those are very nice words. I wonder, however, what he really means by “take full advantage.” He has the option to use the money to accomplish short-term goals or long-term sustainable goals, and the two often are not compatible. I hope he knows that the difference between these goals often parallels the difference between “me” and “us.” Pres. Obama seems to know the difference; I hope Mr. Duncan knows; I’m pretty sure most of the congress does not.