The Solution!

I re-listened to a talk the other day by economist Paul Zane Pilzner, that reminded me just where we are in today's world, both politically and economically. The main point he brought to light, is we focus on a economic theory of scarcity. Basically that we maintain the earth's resources are limited and finite, and if we abuse them, we'll run out. This opens the door for economic gain to step in. Orrin read me a passage out of a book he was reading the other day, that said, "Inflation has only two sources, the first is a scarcity of supply,(The demand exceeds the supply), or the government has played with the money supply." Our spending power is at the mercy of those in control of the money supply. Here's why....

While we do have limited resources, we control our use of those resources through our advancements in technology. To use one of Pilzner's examples, back in the 1970's we were faced with a world oil shortage, and prices and demand skyrocketed, causing lines at the pumps and panic ensued. The government was forced (by means of an artificial crisis) to step in and "regulate." Anyone ever wonder where that crisis went? Did we run out of oil as predicted and no one told us? Nope! Demand forced new technology, cars were made more efficient and used 1/2 the gas as the older models, with the invention of fuel injection and electronic ignition. There was new oil exploration and we found unknown deposits of oil in Alaska, which led to the construction of the Alaskan Pipeline.

Here's the point....Government intervention has never solved anything. Demand creates innovation, and that drives our creative juices to flow. The answer to all our problems lie within our own minds. Taxation, regulation, and government controls, are economic tools to feed the hungry Washington machine. They don't increase the supply, they simply put constraints on demand by making your needs less attainable. Ingenuity is the answer, it drives innovation, and innovation provides solutions. Isn't a solution what we all desire?

Next time someone says we need a candidate/president/politician/government official to solve our problems, we need to answer with. " I used to feel that way too, until I got more information!" Then turn briskly and walk away!

God Bless
Capt. Bill