The Golden Rule of Economics: People Want Stuff

One expects science to make progress, but since at least the 1930s, the science of economics has been stuck between two rival and largely contradictory paradigms, with no end in sight.  Much of the confusion revolves around money rather than wealth, and so by taking money out of the equation, things can be made much simpler. Many people equate wealth with money, but this is often a mistake.  I read that trillions of dollars of wealth were destroyed when the real estate market or stock market collapsed.  Where did it go?  The houses and the factories are the same.  In fact, the "lost" wealth was never there to begin with.  The markets were for a time overvalued by the over-creation of money, giving people the illusion of greater wealth than they in fact possessed.  This led them to make incorrect decisions, as was poignantly demonstrated when Harvard University was forced to sharply curtail its grandiose plans for expansion across...(Read Full Article)