Recently I’ve read a lot of critiques of GDP as a measure of economic progress. Mostly the idea pops up in writing about economics and the environment as well as income inequality and other decidedly liberal opinion pieces.
Economist, Dan O’Neil was recently interviewed in the Globe and Mail about his theory of a “Steady-State-Economy”, the recent British budget and the continuing Eurozone crisis as it extended to the tiny island of Cyprus this past week.
You can read a portion of the interview here. But the core of what he says, and how it relates to my theory of Meekonomics is summed up in this quote:
The way things work at the moment is that financial institutions create most of our money through loans. Banks are allowed to create money effectively out of thin air and loan it to me because I promise to pay it back.
As I see it, the system creates three basic problems: It drives inflation because banks tend to create more money than is actually needed for exchange; it drives growth because people then go out and generate economic activity; and it creates periodic crises when the amount of debt gets to be too much. – Dan O’Neil
Banks create money and drive the economy out of thin air through loans! This is ridiculous and it serves only to enslave people. Government has bought into this lie hook line and sinker through their low interest rate policies. It’s gotten so bad that for some it’s downright unpatriotic not to carry a huge amount of debt.
The amount of debt in the economy right now is stupid!
I’m not sure that Mr. O’Neil’s solution of prohibiting banks from creating money in this way is a viable solution but if enough people simply refused to take on debt as I advocate in the Meekonomist Manifesto the situation will repair itself.
The point is, consumers need to get out of debt, NOW!
For an advance copy of my book, “Meekonomics: How to Inherit the Earth and Live Life to the Fullest Under God’s Economy” write to: firstname.lastname@example.org