The Machine Called Economy

Sacred Leadership

Sacred Leadership

 

Question asked by website visitor as follows:

You have talked about our government and economy being machines within the universal machine.  I am assuming (correct me if I’m wrong) since a machines works efficiently and is designed for a particular purpose…when being operated the correct way to produce the results that it’s design was intended for and the reason and creation for this machine (our government), could you help explain to me so that I understand what is necessary for government to work efficiently and run properly as the machine you say it is and was designed for?

With the latest presidential election hoopla, it’s nice to know as much as possible to make informed choices. It seems like we the people as well as our government and leaders have a NO CLUE how to make our government and economy work the way it is supposed to.   Thanks JS, appreciate what you do here!

 

J.S. Thompson’s response as follows:

This is a great question and I appreciate you asking it at such an important time. The economy is a machine that produces something and like any machine, it runs efficiently when those who are charged to care for it do the things that are necessary.

The biggest problem that we, as a nation, face with regard to economy is this: Those who are charged with caring for it providing leadership do not understand it and for many of those who do understand it, what is necessary with regard to maintenance is often overlooked in favor of self-interest!

It is not a complicated issue. Politicians will often appeal to the greed of those who will vote for them and this is fine as long as what they promise is not done to the detriment of the nation which is, more often than not, the case. I believe there are few voters that really want to hear what needs to be done in order to get this machine running efficiently, because the fix after years of abuse is going to be painful.

Our leadership is going to have to stop borrowing money to pay for programs that are not absolutely necessary and because we have so many of them, the programs that are necessary are going to have to be cut.  If we do not do this now, this machine will self-correct on its own and this will be a disaster! The sooner we take care of this, the more we evade this self-correcting solution. The president who does this might risk being reelected if he does what is necessary!  We need a president who has integrity and the character to be courageous.

A good president needs to understand how this machine works and it works like any machine. It needs energy to run.  The energy that runs the economy is production! If we are to view the economy like a pyramid, those who produce this energy are at the bottom of the pyramid. They might be at the bottom of the pyramid but they are the engine that makes the train run. What they produce goes up to the top of the pyramid to fund the administration of these enterprises and then, the surplus is sent back down to the bottom of the pyramid for expansion. This is how a healthy economic machine works; from top to bottom and bottom to top. However, when the administration filters money that should be going to the bottom into huge funds which they use as collateral for even bigger loans and bigger salaries instead of sending it back to the bottom for economic expansion; the healthy money cycle moves sideways causing the machine to falter!

This machine runs best when we put real energy into it… not false energy. What I’m referring to here… is our nation’s reliance on credit. Credit sounds like a great idea but it allows a false sense or a façade of good economic health that doesn’t really exist. We need to expand only as the energy we produce can sustain it. There was a time when a person could not buy a thing unless they had the cash in hand to do it and if we don’t make an effort to start moving back in that direction…. as I’ve said before, the machine will correct itself and that will be a disaster! Everyone knows this is coming if we don’t change paths; but thus far… our leadership has not had the integrity and courage to do what is necessary to serve in the best interest of all of us and our nation, versus just the few at the top of the pyramid.

Many have heard me say that our government and economy reflect who we are as a society.  This is true; therefore, a good leader will make it more difficult for people to borrow money. Our nation should set the example by paying off all of our creditors and refrain from borrowing money in the future.

In this political environment, there is a great deal of talk about taking care of our economic woes by taxing the rich and they should indeed pay their fair share.  Unfortunately, no matter what the politician says to gain favor and votes with the voter, the rich will not pay more taxes! The rich have never paid taxes and they probably never will. No, the burden of funding the government will always fall on those business that are not big enough to put personal pressure on congressmen. It’s a matter of physics, all things flow the path of least resistance! The greater the burden we put at the bottom of the pyramid, the more we weaken the structure and foundation of the machine. If we continue to pull needed energy which should be fueling the machine, which is used to fund our greed and stupidity of “trickle sideways economics”, the machine will continue to be weakened. Like all machines in the universe, it is a self-perpetuating and self-correcting machine and if we are not wise enough to correct our errors… then let me assure you…. it will correct them for us!!!

We need to stop the trickle sideways economics and get the energy flowing in the proper direction… top to bottom… bottom to top. This is a healthy economic cycle. The leader of our nation will have to be strong enough to change these bad habits.

Thanks for your question!

J.S. Thompson

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