If the government wants to increase spending on infrastructure and create a better tax structure, why not start with cutting the taxes that drive economic activity, and spend the money on infrastructure and research. That would be a much better approach than increasing the debt, and running amuck with runaway inflation, which costs more money at the pumps and adds to price inflation, and all this just to prop up the dollar. So, when I study economics, I try to stay away from all these political games, and I try and focus on the macro-level effects, which are so detrimental to the common person.
Of course, economics does take a bit of the human aspect out of it, but then it is human nature and we have been studying the economic behaviour of the markets, of which humans are the supreme planners. Markets shape their own reality, and so they can not be controlled by the politicians in the usual manner. Markets are self-organizing, and so when the governments try to intervene in the normal flow of the market, they do so at their peril. The economies can buck the move and go into a recession much faster than most people think.
But then, this is not like the personal falling Illness, where the cure is easy, and the doctor is quite available, or so the thinking goes. And yet, when the markets do start to move, and fall, it will take a long time to recover from the falls and recover the losses that have occurred, and by the time the markets have calmed down again, it will have cost the government many billions of dollars. This is why I cannot bring myself to work in economics as a private investor, because I would not be able to bear the expense. It is too risky. But if I were going to start my own business, I could make sure that the risk was low, by studying all of the stock markets history.
If you study nations economics, you will see that it is a very interesting subject, because it is so different from the personal economy. Now, normally you would say that nations with a strong economy are doing well, and those that are not doing so well are doing badly, and those are the poor nations. Well, if you study the economies of nations around the world, and study the stock markets, you will see that this is not always the case. You see, depending upon how you interpret the markets, you can come up with very different conclusions.
In the real world, if you purchase something in the store, you use cash. You pay for the product with your money. You pay off your debt with your money. If you want to buy stock in a company, you issue a stock, and that turns into debt. If you do not pay your debt off on time, that becomes an interest payment, on top of the principal amount you borrowed from the stock market. All of these are payments you are making with your money, on a regular basis.
You may come up with a completely different explanation for what is going on in the stock market in nations like Venezuela, Iran, Syria, Nigeria, and so on. For the most part, though, it doesn’t really matter which economic model you choose, or which stock market model you believe, because in the end, it is still a game of economies and markets, and all nations want their own piece of the pie. Nations politics can make things complicated, but it is not the question of “What does this nations economy look like?”
It is rather a simple question of “How well do you understand how national economies work, and which type of government is best for that particular economy?” If you don’t know how nations operate, how can you accurately make predictions about what the political structure of those nations will do? It is simply not possible to give intelligent and educated answers to such questions, without taking a fundamental understanding of how the economy operates. It is a shame that most people do not realize it, but you could be sitting in a classroom, or sitting in a bar-room, and ask the same questions, to the same answer. It is a shame everyone is sitting in classrooms, bars-rooms, and getting an education that teaches them to ignore, or forget, the basic theories of economics.