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A Non-partisan Approach to Understanding Politics
If you understand Money and how it works, you have reduced your chances of being politically deceived by half.
Money politics affect welfare, taxes, business, unions, minimum wage, class warfare, Social Security, the IRS, construction projects, foreign aid, hidden taxes – also called "fees" – and much more political activity.
You should remember these important points about money. That will eliminate most of the deceit in politics for you.
- The dollar bills you spend are not real "money." The are tokens of value. That value is called "money."
- Money gets it value from business transactions, not from government.
- There is no limit to money.
- About 0.008% of the money used in the States are represented by dollars and coins. The rest are all numbers on books – that is, in computers.
All these figures vary by year. In 2015 these are the approximate amounts:
Dollars in circulation: $1.34 trillion – this is the money you hold in your hand.
United States worth: $225 trillion
United States Gross Domestic Produce (yearly) $15 trillion.
- No matter how much money a person has, he does not deprive anybody of one cent.
This is not a "Zero-sum" game. That is, it is not true that for every dollar one person has, another person goes without.
It works this way. Nobody has his billions or millions of dollars hidden in his house under his couch. All of it, except for that which he is using at the time, is in the bank or investment houses. The bank and investment houses are putting that money to work, for interest. They finance construction and other businesses. Thus, all this money that belongs to the millionaires are in general circulation, providing jobs and other sources of income for the average person.
- Money always flows from where there is more money to where there is less money.
It always flows down; it has to, just like water. It's impossible for money to flow from where there is no money to where there is money.
This point is sometimes demonized as the "Trickle Down Theory," but it's not a theory. It's the natural way things work. Plants grow up, roots grow down. Water flows down. Tempreature flows from hot to cold.
- Wealthy people get their money from business transactions. Poor people do the same thing.
A person would soon go bankrupt if he tried to get his money from those who have little or none to spare. You get it from where there is money. Some people get it from business transactions. Others get it from having a job – which is a business transaction in itself.
Wealthy people get wealthier because they know how to earn money, and they keep on doing the same successful things. Poor people get poorer because they do not know the principles of wealth-building, and they keep on doing the same things that keep them broke.