The usual effect of the attempts of governments to encourage consumption, is merely to prevent saving; that is to promote unproductive consumption at the expense of reproductive, and diminish the national wealth by the very means which were intended to increase it. What a country wants to make it richer is never consumption but production. Where there is the latter, we may be sure there is no want of the former –John Stuart Mill 1844
The crucial distinction is between productive credit, financing investment on the economy’s supply side, and unproductive credit, financing consumption and pure financial activity, like carry-trade, mergers, acquisitions and stock buybacks. Productive investment credit adds to current and future income. Consumption credit only adds to current income. Financial credit adds nothing to economic activity; it only enriches a minority.
That is why in America the rich–thanks to financial leveraging–get richer and richer, while the middle-and lower-income Americans living mainly from production get poorer and poorer. (The Gloom, Boom and Doom Report August 2012)
Six hours of video lectures by famous economists, entrepreneurs and financiers. A chance to be entertained as well as informed.
How was money created? What is the history of money in the US? What happens when your money loses its value? Find out.
Money Lecture Series
Part 1: What is money? (Prof. Joe Salerno) http://youtu.be/vowbrq_g5NM
Part 2: What is constitutional money? (Edwin Vieira) http://youtu.be/k6gMkKmQSW4
Part 3: What about money causes economic crisis (Peter Schiff) http://youtu.be/npJ0CUT8d_Y
The Federal Reserve
All the gory details on the history of the Fed and its future.
The Federal Reserve Series
Part 1: Why was the Fed created? (Prof. George Selgin) http://youtu.be/JeIljifA8Ls
Part 2: What Does The Fed Do? (James Grant being savagely funny) http://youtu.be/pRipVd5wxhI
Part 3: What is the future of the Fed? (Prof. George Garrison) http://youtu.be/IdX60JgPTmA