ECONOMICS AND NUTRITIONAL BALANCING

by Dr. Lawrence Wilson

© May 2017, L.D. Wilson Consultants, Inc.

 

All information in this article is for educational purposes only.  It is not for the diagnosis, treatment, prescription or cure of any disease or health condition.

 

THIS ARTICLE IS STILL BEING WRITTEN.  PLEASE CHECK IT ONCE A WEEK OR SO FOR CHANGES AND NEW MATERIAL

 

Contents

 

I. INTRODUCTION TO ECONOMICS

Why This Article?

Souls And Economics

Definitions

The Economic Spectrum

Academic Organization Of Economics

Other Useful Definitions

Moral Law And Economies

 

II. THE ECONOMIC BALANCING SYSTEM - ELEMENTS OF THE ECONOMY

Basic Principles (1 through 7)

The Seven Laws Of Economics

Infrastructure – (The Organs)

Regulators -  (The Glands)

Industries – (The Foods)

Digestion

 

IIA. THE SEVEN CENTERS OF A NATION OR SOCIETY

 

III. INTRINSIC VALUES IN AN ECONOMY

 

IV. NA/K RATIO

 

V. OXIDATION RATE

 

VI. OTHER MEASURES

 

VII. ECONOMIC PATTERNS

 

VIII. CORRECTION

 

IX. OTHER VITAL CONCEPTS

 

X. ECONOMIC “DISEASES”

 

XI. ECONOMIC TRAUMAS

_____________________________

 

I. INTRODUCTION TO ECONOMICS

 

WHY WAS THIS ARTICLE WRITTEN?

 

            1. To teach about the future.     

2. To present a new science of economic analysis and correction.  In our experience, just understanding current economic theories is not sufficient to produce healthy economies.

            3. To shift the discussion of economics from one of academic debate regarding the merits of various types of economies to one of reality.  In reality, a free market or capitalist economy is always best.  We hope this article helps everyone understand this fact.

            4. To provide help for economies in trouble.

5. To introduce the idea of the soul as it pertains to economics.  The next section explains this idea.

 

THE SOUL AND ECONOMICS

 

            Economics is about activities of souls.  This is a critical idea that is not part of mainstream economics, but it is the truth.  Until economists understand what this means, the science of economics will be held back.  So here are some very basic ideas about souls.

1. The soul is the animating force in all human beings and animals.  It is the basic unit of consciousness, not the body.

 

2. Souls are very tiny, but they are all powerful.  This means they can develop all sorts of abilities and powers.  This is rather esoteric, but important to know.

 

3. Souls must learn things, however, in order to develop their abilities and powers.  So they want to learn and they seek situations in which to learn.

 

4. Economics is one of the areas of life in which souls can learn many things. 

 

5. Planet earth is a fertile territory for learning via economics.  This is because earth is a highly ‘economic’ planet.  This means that people love shopping, buying, selling, trading, bartering, making things, destroying things, showing off their things, and more.  The internet and newspapers are full of economic messages and economic information.

 

6. Free market economies offer the most opportunities for learning for souls. In these economies, a soul can be on welfare and in poverty, but it can also be a company president, a wealthy philanthropist, an entrepreneur, and much more that is not permitted, or is much more difficult to achieve, in command or socialist or communist types of economies. 

 

7. In fact, in an ultimate sense, this is why free market economies work better.  In other words, economics is all about souls and making souls happy and fulfilled in their quest to learn and mature.  That system or type of economy that does it best will succeed the best.

 

Much, much more can be said about souls.  For details, read Soul Science and the other dozen or so articles about souls in the Unusual Life Forms section of the articles on this website.

 

DEFINITIONS

 

            Economics can be confusing.  Definitions are thus important.

 

              Economics.  Economics is the study of decision-making in a nation or society in regards to buying and selling, or otherwise acquiring and disposing of goods and services.  This includes producing, manufacturing, processing, distributing, sales and marketing of all goods and services in a nation or society.

              Economics defined this way is a subset of politics.  Politics is the science of all decision-making in a nation or society.

 

THE ECONOMIC SPECTRUM

 

            A way to understand various economies in the world is to view them along a line.

            At the left end of the line is economic anarchy. The word anarchy means no ruler or no laws.  It means that everyone has the ability to do as they please, without restraint, even if their actions harm others.

At the other end of the line is economic totalitarianism.  This is the situation in which the government heavily regulates every aspect of the economy.  Another name for this is a command and control economy.

In the middle, between the two extremes, are social democracies and free market economies.  These economies offer some freedom of choice for people, but it is within a framework of laws.

 

IS THIS THE SAME AS LEFT-WING AND RIGHT-WING ECONOMIES?

 

Not exactly.  Left-wing is a political term that refers to nations or societies that are more secular.  Right-wing is a political term that refers to nations or societies that are more religiously-ruled such as theocracies.

Extreme left-wing and right-wing nations or societies have command economies.  Left-wing nations have socialist and communist governments that are secular.  These include nations such as Russia and some African nations run by secular dictators.

Right-wing nations have religious governments, such as Iran and other nations of the Arab world.  They, too, have command economies.

Nations in between the extremes such as the United States and Europe have more free market economies.

 

MORE DETAILS ABOUT ANARCHIC, FREE MARKET, AND COMMAND ECONOMIES

 

Let us examine these three types of economies in more detail.

 

1. ECONOMIC ANARCHY OR LICENSE

 

Definition.  Anarchy means no ruler or no rules.  It is a free-for-all where anything goes. Individuals, companies and entire industries pretty much do whatever they wish.  There is little stability and contracts are not enforceable.

In some cases, there are simply few laws regulating the economy.  In other cases, the laws exist, but they are ignored due to corruption, tradition, or some other reason that results in inadequate enforcement of the laws.

Other names.  This type of economy is sometimes called rogue or predatory.  The operant principle or law is the law of the jungle.  That is, you may do whatever you can get away with - and so can everyone else.

It is a very chaotic and dangerous place to live, and usually the economy is very basic and undeveloped, as a result.  Anyone who amasses any wealth becomes a target and must live in an armed compound, for example.  it is an economy characterized by license, which means permission to do as you please, without restraint.

Examples.  Some of the South American economies, including parts of Mexico, Guatemala, El Salvador, Nicaragua and Columbia have this situation.  Other areas with anarchic or rogue economies are parts of Afghanistan, though this is less so today due to the American presence there.  Others are remote areas of Pakistan, and other nations in this area of the world.

 

2. TOTALITARIAN OR COMMAND ECONOMIES

 

Definition.  The other extreme is an economy that is tightly controlled by a strong central government or a king or dictator.  Free markets are not permitted and thought to be wasteful or extravagant.  These economies may offer two or three models of cars, for example, along with three types of houses, five different kinds of clothing, and so on.

The government regulates every aspect of the economy - who works, where they work, how they work, what is produced, how much is produced, and who gets what is produced.  There are five year plans and books of rules that must be followed to avoid harsh jail sentences, forced labor camps, or even death.

These economies do not develop properly and always fail miserably.  The reasons are:

1. They are top-heavy with bureaucrats who produce nothing.

2. Many bad economic decisions occur because the bureaucracy cannot see the needs of the people, or they don’t care.

3. The government does not respect the rights of the people to make their own economic decisions.

4. These economies are burdened with idiotic rules and regulations that are often designed to maintain control, but little else.

Other names.  This type of economy is also called command and control.  Other modern names for these economies are socialist and communist.  They may also be called leviathan.  This word comes from the Bible, where it was the name of a large sea monster in the Book of Job.  Today, it means an enormous and powerful beast.

Examples.  The former Soviet Union was a totalitarian state and its economy was strictly controlled and regulated by the central government.  Modern-day Russia is very similar.  Nazi Germany was not quite as controlled, but was also a totalitarian state.

At the present time, North Korea has a very tightly controlled economy.  The economies of the Arab nations are also very heavily regulated by the government.  None of the totalitarian economies are well-developed and none of these nations are prosperous.

 

3. MIDDLE GROUND

 

These economies offer some freedom, but not as much as the anarchistic economies.  They are controlled by laws, but they are not as heavily regulated as the command economies.

Several kinds of economies are in this category.  They are:

 

1. Socialist democracies.  The economies of these nations are quite heavily regulated and closer to command economies.  The governments basically do not trust the private sector and private ownership of companies and other assets.  So they insist on government control or outright government ownership of some larger industries.

This brings with it all the problems of bureaucratic control of the economy, so these nations allow some free market activity to help offset some of the problems.  Small businesses are allowed to be privately owned, although there is still a lot of paperwork to fill out to start a business.  It is a compromise solution that does not work very well.

Unlike the communist and other dictatorships, the people in the socialist nations have basic human rights.

Examples.  These are the economies of most European nations and many prosperous Asian nations such as Japan, South Korea, Taiwan and others.  The socialist compromise seems to work best in these Asian nations.  India and Israel are other nations with this type of economy.

 

2. Free market economies. These economies offer the most open and free markets and maximum economic freedom within a strict legal and moral framework to control abuses.  They are based on the idea that open and free economic exchange produces the best economy and the most prosperity.

This view of economics is based upon Western Biblical and moral ideas about human liberty and human rights, as well as practical observation of what methods work best in modern nations on earth.

An early proponent of these ideas was Adam Smith (1723-1790).  He wrote The Wealth Of Nations, in which he analyzed the most successful economies in history and concluded that the key to their success was the availability of free and open markets where people could decide what to buy and sell, and could haggle over the correct price for all goods and services.

Adam Smith strongly influenced the founders of America, which remains the main nation that follows this economic model.

Free market economies require a well-developed legal system to enforce contracts and to punish fraud, misrepresentation, counterfeiting, extortion, blackmail, murder, negligence and other economic crimes.  There should also be strict controls on the banks and the government in regard to management of the currency to maintain the integrity and value of the money.  (This is no longer the case in any modern nation.)

Within this legal and moral framework, these economies allow considerable economic liberty or freedom.  This means that one can do as one pleases, provided one does not harm others or violate the laws.

Other names.  These economies are sometimes called free, free market, free enterprise, laissez faire or capitalist economies.

Examples.  The best example is the United States.  Its economy is no longer as free as it once was, but it is still better than most other nations.  A few smaller nations such as Singapore also have free market economies.

 

4. THE UNUSUAL SITUATION OF RED CHINA 

 

This nation has a totalitarian communist political structure, but allows some economic freedom and a degree of free market economic activity.  This combination is unusual because in most cases, communist governments maintain tight control over their economies.  In this case, a hybrid situation has worked fairly well because China:

1. Has a huge and hard-working labor force.

2. People are used to totalitarian political rule.

3. People are willing to put up with corruption and other problems of totalitarian governments.

 

            Relation to left-wing and right-wing politics of a nation or society.  Nations and societies that are strongly left-wing (secular socialist and communist) and those that are strongly right-wing (religious dictatorships) both tend to have command and control economies.

              Nations and societies that are more centrist, such as the United States, most nations of Europe and those in parts of Asia, tend to be more in the middle of the spectrum between the two extremes above.

 

ACADEMIC ORGANIZATION OF ECONOMICS

 

            Economic theories are presented and taught as schools of economic thought.  They are perspectives about how economies operate.  They include:

1. The Austrian school – a natural approach and a systems approach.  Early in the twentieth century, a group of European economists formed The Austrian school of economics.  Among its main theorists were Ludwig Von Mises (1881-1973) and Friedrich Hayek (1899-1992).

They are proponents of free market economics with as little government interference as possible.  They say this is the natural way people acquire all their material goods and services, and that the right legal framework promotes this very efficient, very effective, voluntary, happy economy.

3. The Keynesian school – a government interventionist approach. This school of thought is named after John Maynard Keynes (1883-1946).  He was a British economist who worked for the British East India Company, the largest corporation in the world at the time, which collected tribute from the British colonies.

Keynes advocated a market economy, but also believed in government intervention or tinkering in the economy.  Most harmful, he believed in running budget deficits to get rid of high unemployment.  This idea has been proven incorrect over and over, but the theory persists.

3. The Chicago school – another free market systems approach.  Milton Friedman (1912-2006) founded this school of economics in the 1940s.  It is quite similar to the Austrian school of economics.

4. The Marxist school – a waring approach.  Karl Marx (1818-1883) was a social philosopher who decided that economics is basically a struggle between those who actually do the work in society and those who own the factories.  This model is the basis for communism, which is a totalitarian economic system supposedly run by the workers, but not really.

He believed that the workers were the “good people” because they performed labor.  The owners, he said, did not do much work and were just parasites on the workers.  Eventually, he said, the workers would overthrow the owners of the factories and take over the nation.  This belief system is today called communism. 

According To Karl Marx, capitalism is a stage in the evolution of a society.  However, the goal is to overthrow it by force and substitute an economy run by the workers. 

Many attempts have been made to do this.  The most well known is the takeover of Russia by the communists in 1917.  However, none of the experiments has ever produced a healthy economy.

The Marxists say the reason Marxism has not worked economically is that it is too soon in the evolution of society and/or the revolution was not done correctly.  Opponents say the reason Marxist or communist revolutions have always led to poverty and ruin of nations is that the theory is completely flawed. 

For example, the idea that workers are superior to capitalists or owners of businesses, and that capitalists don’t do much work, is rather ridiculous.  Those who launch, finance and manage businesses are among the brightest and hardest-working people in any society.  They are the entrepreneurs, a vital group of people in any society.

Opponents of present-day Marxism believe that this strange theory is just a modern excuse for tyranny or dictatorship, a very old-fashioned idea.

Advantages of Marxist economies are few for the general population.  The elites who run them, however, enjoy tremendous power over the lives of others, better protection from the police than others, and often receive more benefits than other people.

Disadvantages of Marxist economies are poverty, dullness, environmental filth, shortages of many goods, at times long lines for staple goods, and harsh jail sentences or worse punishments for violating a myriad of rules and regulations.

 

5. The socialist planning model.  Another economic model and school of thought is socialism.  This model is an outgrowth of the European monarchies in which the king basically owned everything and ran the economy. 

The socialists believe that the best economics is a system run by an elite group of planners, sort of a benign dictatorship.  This is the basis for the European socialist economies. 

In practice, this style of economy works poorly and produces little.  It is the system in many nations of Europe, India, Israel and the modern nations of Asia.  The problems with it are:

1. It does not reward effort or hard work because everyone receives the same handouts or benefits.  As a result, no one wants to work much, and this reduces the productivity of the economy.

2. Any time there exists large government bureaucracies, the economy is plagued by waste, fraud and abuse.  To clarify,

a) Waste means unnecessary programs, redundant agencies and programs, and generally stupid and inefficient operation.  Government bureaucrats have very little incentive to do good work.  Also, government jobs usually attract security-minded people, rather than the brightest minds and the hardest-working people.

b) Fraud means that with large bureaucracies, it is easy for people in the society or nation to cheat the government to obtain more benefits and perks.  One simply fills out phony paperwork and submits it for reimbursement.  This costs all government bureaucracies billions of dollars each year.

The government must spend millions policing the system, and even then fraud is difficult or impossible to stop.

c) Abuse means corruption within the bureaucracy.  This is also impossible to stop.  It is very easy for special interest groups to bribe, threaten, blackmail or use other methods to control government regulators, inspectors, clerks, researchers and everyone else in the bureaucracy.

The problems of waste, fraud and abuse apply as well to the communist and all other  totalitarian or command economic systems.

Advantages of socialist welfare economies are that wealth is distributed fairly evenly compared to the other types of economies.  Prosperity, and respect for human rights and law and order are better than in communist nations or societies, but worse than in free market economies.

            Disadvantages of socialist welfare states often include stagnant or sluggish economic growth.  People are often discouraged due to stupid rules and regulations on the economy.  There is also more poverty and environmental problems compared to free market economies.  Socialist welfare states are also less exciting and less satisfying places to live than nations or societies with free market economies.

 

6. Hybrids.  Some nations and societies combine aspects of several of the above types of economies.  The results are usually poor to mixed, based on the principles and concepts discussed above.

 

THIS ARTICLE IS ABOUT A NEW METHOD OF ANALYZING AND FIXING ECONOMIES

 

The rest of this long article is dedicated to explaining the economic balancing method of analyzing and correcting an economy to produce the most vibrant, and healthiest economy for a free people.  It is a free market model with a minimum of government intervention besides setting up a constitution and a set of laws to maintain order, and to avoid cheating.

NOTE: Socialist and communist elites have completely different goals for their economies.  They are primarily interested in exercising a lot of control over their citizens.  They are much less interested in the productivity, efficiency or vibrancy of the economy.  As a result, they would not agree with the advantages and disadvantages of a free market economy listed below.

Advantages of free market economies include:

a) Prosperity.  Free market economies generate the most wealth of any type of economy.

b) Proper incentives.  Only free market economies reward effort, hard work, and satisfying the needs of others.  They also reward courtesy and respect for others, and other positive values.  They also reward invention and innovation.

c) Liked by souls.  Only free market economies respect indidivual human rights and allow great personal freedom, which souls enjoy.  This also makes them fun and exciting places in which to live and work.

d) “Smarter”.  This occurs because they reward intelligence.  Also, information is distributed widely and able to be acted upon by millions of people.

e) Natural “cleansing” of bad products and services.  Capitalist economies have rapid and excellent ways to rid the marketplace of shoddy and dangerous products and services.  The methods are wide distribution of economic information, reduced sales, and, if needed, the legal system.  This is not true of command economies.  These are often plagued by shoddy products.

f) More self-correcting.  This is vital.  Free market economic systems are self-stabilizing in many ways if they are set up correctly.  Other types of economies do not have the same number of self-correcting mechanisms.

This means that free market economies last longer and are more stable.

g) Satisfying the needs of others.  This is a key to success in the free market.  As a result, these economies teach good moral lessons such as honesty, industriousness and courtesy.

The commonly taught idea that free market or capitalist economies are all about selfishness is not true.  In fact, the opposite is true.  Selfish and lazy people do not do well in this type of economy and often prefer command economies.

h) Legal remedies.  Only in free market economies is there clear legal redress if one is cheated in business.  Some socialist economies have these protections, but not many.

i) Safest.  While not always the case, a true free market economy is usually the safest in which to life and work because they economy is based on respect for human rights.

j) Cleanest.  Free market economies tend have the cleanest environments.  This may seem unusual, but it is true.  The biggest polluter in many nations is the government, which has little incentive to be environmentally conscious since they run the nation and can do as they like.

This is easy to observe in Asia, Africa, Brazil and other areas where large central governments run the economy.

k) Efficient.  Only free market economies do not require large, costly, government bureaucracies with their problems of waste, fraud and abuse.

m) Fun and exciting.  When set up properly, free market economies are always more exciting places to live because they provide many diversified choices and people are treated better.

n) Better soul development.  Development of human beings is a very important concept.  Free market economies promote development much more than other types of economies.

 

Disadvantages of free market economies are:

a) Difficult to understand.  A free market economy is a very complex, self-regulating system.  Most people do not understand systems theory, so they do not understand why free market economies must work in certain ways, and why they operate as well as they do.

Another example of a complex, self-regenerating system is the environment.  It is also very difficult to understand the complex interactions between all the plants, all the animals and the human beings.

b) More difficult to control.  This is related to the paragraph above.  This is not a problem for the great majority of people.  However, it annoys rulers, elites, planners and others who want to control the economy.

c) Greater need for infrastructure.  Free market economies require more of the correct legal and financial infrastructure to operate properly than do the other types of economies.  They require a constitution, a legislature, banking and lending institutions, a sound legal profession, courts, jails and other institutions to function optimally.

d) Income disparity.  Some people accumulate more wealth than others in a free market economy.  In fact, this is the design of the economy.  It occurs because some people work much harder than others, some are more intelligent than others, and occasionally for other reasons such as inheritance or luck.

While it is part of the design of the economy, some people object to the difference in material wealth in the population.

 

PERCENTAGES OF PEOPLE LIVING UNDER EACH OF THE ECONOMIC SYSTEMS

 

While it changes almost daily, a rough estimate is:

1. Free market economics: 1%

2. Marxist economics: 10%

3. Socialist welfare economics: 59%

4. Pure command economics: 20%

5. Hybrids: 10%

 

OTHER USEFUL DEFINITIONS

 

1. Left wing, liberal or progressive.  People who identify with these labels favor communist or Marxist economic systems.

Prior to the twentieth century, the word liberal described the founders of America such as George Washington and Thomas Jefferson.  However, the word was stolen by left-wing progressives and communists in the mid-twentieth century, in both Europe and America.  This is why the founders of America are today called classical liberals.

Dennis Prager and a few others say the word liberal does not denote a communist or socialist.  However, most liberals today vote Democratic in the United States and thus, whether knowingly or unwittingly, support communist and socialist causes.

2. Right wing.  These are religious or theocratic totalitarian nations or beliefs.  The nations are religious dictatorships such as Iran and Saudi Arabia. All of them have tightly controlled command economies. 

Germany under the Nazis was called right-wing because Adolf Hitler named himself as the new Christ for the people of Germany.  In this sense, it was a religious dictatorship.

Today, communists and socialists often accuse American conservatives of being right-wing, but this is not at all true.  Unfortunately, some voices of conservatism such as Dennis Prager accept the term right-wing to describe themselves, when it is not true.  The proper term for a conservative is centrist (see below).

3. Centrist.  This term is not used too much.  However, it means those who are not left-wing communists or socialists nor are they right-wing religious zealots.

Those who fall into this category are described below.

4. Classical liberals.  This term refers to the founders of America such as George Washington and Thomas Jefferson.  The founders were all deeply religious Christian men and women.  The term classical liberal has nothing to do with those who are called liberals, who are socialists and communists.

The founders were heavily influenced by Adam Smith and other philosophers of their day such as John Locke and Frederick Bastiat.  They strongly believed in the theory of natural rights and in the reality of the soul. 

They favored free markets and self-government based upon Biblical principles.  They repeated many times that economic freedom would only work if people understand and practice Biblical principles such as the Ten Commandments and the Golden Rule.  Otherwise, the people would require a powerful central government to control their behavior.

The founders wanted people to have the maximum freedom in both the political and economic spheres, but did not believe people were served by legalizing prostitution, homosexuality, recreational drug use or gambling.

A few also favor laws restricting work on the Sabbath, or other restrictions to help the society maintain its moral compass and direction.  Today, those with this belief are called conservatives (see the section below). 

5. Conservatives.  This name refers to people in America and Europe who have the same beliefs as the classical liberals (see the paragraphs above).

What occurred was that in the early 20th century, the communists managed to steal the real name of this group of people – classical liberals.  The communists also branded these people as conservatives, a fake name that does not describe them.  However, today this name is used by the media, which is communist-controlled.  Many with these beliefs have sadly accepted the name conservative for themselves.

In this article, we will use their real name – classical liberals – to describe this large group of people, especially in America, who favor a religious-based economic system that is largely, but not purely a free market system.  To understand pure free market capitalism, see the section below.

6. Libertarians.  This term was coined in the early 1970s in America.  People who identify with it believe they are following in the footsteps of the American founders.  However, they are not! 

They strongly favor a capitalist or free market economic system.  However, theirs is a secular movement that favors what is called pure capitalism. 

Pure capitalism is an economic model that believes that any voluntary transaction between two adults is okay. 

This was not the economic system of early America, which was a religious concept based firmly upon the teachings of the Hebrew and Christian Bibles.

For example, libertarians and others who favor pure capitalism believe:

- If two men or two women want a homosexual marriage, that is okay.

- If a man wants sex and a woman wants to provide sex for money, that is okay. 

- If a woman wants an abortion and a doctor wants to provide this service, it is fine. 

- If a person wants to gamble and a casino wants to provide this service, it is okay.

- If a person wishes to take recreational drugs, and another person wishes to provide them, this is okay.

None of these economic transactions or behaviors are permitted in a Bible-based economy because they violate moral principles.

Many libertarians also favor getting rid of all national borders so that people everywhere are free to live wherever they wish.  They also believe in limiting the size and scope of the military to only defending the homeland.

These were also not the beliefs of the founders of America.  The American founders strongly believed in nation-states and national borders, and they believed in a nation’s right to use force, if needed, anywhere in the world to defend their nation.

George Washington, America’s first president, suggested remaining on friendly terms with everyone because the nation was small and fragile at that time.  However, he did not mean to give up the right to defend the nation in any way necessary.  It makes no sense to wait until an enemy is at your doorstep to take action against him or her, if pre-emptive or other, more intelligent action can be taken sooner.

7. Keynesnians.  These are people who believe in the flawed theories of John Maynard Keynes.  Many economists today fall into this group.  This is a secular economic understanding that is somewhat free market, but with government intervention and tinkering.

 

MORALITY AND ECONOMICS

 

The belief of this author is the same as that of the founders of America.  It is that free market economics can only exist in an environment of strong moral values.  This is critical to understand.  Free markets depend upon people telling the truth, intending a fair deal, wanting to work with others, and respecting the rights and property of others.

Without these values, free markets do not work well.  There is endless cheating, corruption, sabotage and worse crimes such as murdering those who disagree with you or who are your competition in the marketplace.

The only value system that works with a free market economic system is based upon the Ten Commandments of the Old Testament of the Bible. 

This is why America has the best economy on earth, and why free market economics do not work as well in many other nations.

 

This concludes a very brief introduction to the field of economics.

 

II. ECONOMIC BALANCING – a method of understanding, analyzing and correcting economic problems

 

BASIC PRINCIPLES (1 THROUGH 7)

 

Life principles.  Economics follows certain principles.  It is helpful to express these clearly and simply.  The seven basic principles of economic balancing can be expressed as:

 

Mutual benefit. Both parties in any voluntary economic transaction always receive benefit.

Supply and demand.

Markets. These are places where the forces of supply and demand act and buyers and sellers gather and interact with each other.

Markets always exist, even in command economies.  However, in capitalist economies they are treasured and honored for their excellent economic effects.

 

THE SEVEN LAWS OF ECONOMICS

 

1. Private property and profit.  More specifically, this is the ability of all people to own, use and dispose of property as they wish.

2. Intimacy between buyers and sellers.  This is critical for an economy.  Ideally, there should be face-to-face contact, and at least telephone, email and other electronic contact to have a vibrant economy.

3. Power over buying and selling. Market economies require that people have control and power over the production, distribution, sale, and marketing of goods and services.

4. Trade.  This is needed for a varied and vibrant economy.

5. Entrepreneurship, innovation, invention and resulting efficiencies.  This requires higher thought and expression, which are associated with this energy center.

6. Establishment and enforcement of laws, including a constitution, statutory laws and regulations. This is very important for the smooth operation of any economy.

7. The moral and spiritual aspect of the nation or society. This keeps the entire society or nation operating properly.

 

 One can trace most problems in economies to a violation of one or more of these rules.  For example:

 

Violations of Rule #1 – Property and profit.  Governments violate this rule by passing laws or taking other actions abridge the right to own, control, use or dispose of one’s property.  Governments do this in a number of ways such as imposing high property taxes, real estate transaction taxes, environmental rules that limit land use, restrictive zoning laws, estate taxes that force people to sell property they own, and more.

 Profit.  Governments limit profit with high taxes, mainly.  However, they may also impose so many regulations and other restrictions on businesses that the businesses cannot earn much profit.

 

Violation of Rule #2 – Intimacy, or contact between buyers and sellers.  Governments ruin this with occupational licensing laws, censorship of speech and writing, restricting sales of health insurance, for example, to just in-state or local companies, and a myriad of regulations regarding the production, sale and purchase of thousands of items.

The need for free and honest exchange of information and education of the population regarding economic opportunities, principles, products and services is part of this rule.

 

Violation of Rule #3 – Power and control.  Governments often forbid certain transactions and, at times, impose mandates - a fancy word that means forcing people to buy certain products when they may not want to.  They may also force sellers to sell when they may not want to do so.

 

Violation of Rule #4 – Trade.  Governments impose tariffs, export taxes and outright bans on trade for various reasons.

 

Violation of Rule #5 – Entrepreneurship and innovation.  Governments destroy this important aspect of an economy with too many rules and regulations, high fees to open a business, and other silly rules designed to stifle new businesses.  They may allow unions that prevent innovation and also make starting a business more difficult.

 

Violation of Rule #6 – Establishment and enforcement of laws to regulate the economy.  Governments violate this law by their own lawless behavior, by not enforcing good laws, through corruption, negligence, and by passing bad laws.

 

Violation of Rule #7 – Moral overview or moral principles of the nation or society.  Governments violate this with their corrupt behavior, and at times, by actually banning religions or teaching false spiritual doctrines to their people.

 

THINK OF THE ECONOMY AS A BODY  

 

Relation to nutritional balancing science applied to living beings.  The principles of nutritional balancing can be applied in the field of economics.  This is a whole systems approach to economics that is very powerful and precise in its ability to pinpoint economic problems and correct them.

 

            The economic “body” has a head, feet, organs and glands.

The head:  These are the inventors and entrepreneurs.  They are initiators who drive the economy.  The head includes the investor class of people, as well.  These people are usually middle or upper economic class people, though not necessarily.

The feet:  These are the poor and dependent economic class of people.

           

THE SYSTEMS OF AN ECONOMY OR “ORGANS”

 

              Digestive system: This includes the agricultural sector and the food distribution system of a nation.

            Respiratory system: The energy or power systems of a nation or society.

              Eliminative system: This includes the judicial system and criminal justice system, courts and prisons.  It also includes pollution control, waste disposal, sewage treatment, hazardous material disposal, recycling and related facilities and industries.

              Brain and nervous system.  This corresponds to the governing bodies of the society such as the Congress, Senate, Parliament or other governing councils.

            The peripheral nerves have to do with communication.

              Cardiovascular system.  This has to do with the transportation system of the society or nation.

            Endocrine system.  This is the regulatory systems discussed in the next section.

            Reproductive system.  This includes the hospitals, doctors and all others involved in bearing and raising the young.

            Immune system.  This has to do with all groups and institutions that keep out imposters and criminals, and those that preserve law and order.  It includes the military, mainly.  It also includes intelligence agencies.

            Structural system.  This includes infrastructure such as power systems, dams, roads and bridges, possibly, rail lines and more.

            Integumentary system or the skin.  These are the borders, walls, fences, checkpoints and other control systems that keep unwanted people out and perhaps keep the citizens or their money inside the nation.

            Sensory system.  This includes all information-gathering groups in the nation such as intelligence agencies, security agencies and others.

 

THE REGULATORS OR “GLANDS”

 

            Every society has certain methods of regulating the economy.  These can be important for this method of economic analysis.  They are analogous to the glandular system in a human body and include:

 

1. The testis/ovaries: These have to do with new life and creation in the economy, such as the birth rate, but also the rate of business formation.

2. The adrenal glands: These have to do with regulating the money supply, which is liquid in an economy.

3. The pancreas: This helps regulate the banking system that allows money to move freely in the society.

4. The thymus:  This helps regulate the police, whose job it is to arrest criminals and maintain law and order.

5. The thyroid gland: This helps regulate the media, who hopefully are the voice of the people.  This allows proper communication and information exchange, a vital activity in any economy.

The thyroid gland is located at the level of the fifth energy center, or throat, which has to do with expression.

6. The pituitary: This regulates the quality and responsiveness of the governments - local, state and national.

7. The pineal: This helps regulate the religious climate of the nation or society.  It is located at the level of the seventh energy center, which is associated with spiritual matters.

            For more details about the glandular system of the body, read The Glands And The 7 System.

 

INDUSTRIES  - THE FOOD AND DRINK OF THE ECONOMY

 

            There are:

1. Solid foods.  These are the various industries and occupations.

            2. Liquids.  These are the solvents and mediums of exchange in an economy such as cash, checks, promissory notes, IOUs (which means “I owe you”), credit cards, electronic currencies and exchange systems, barter systems, stocks, bonds, options, futures and other means of exchange.

 

            Types of industries (or foods):

Proteins:  These are building industries such as construction, manufacturing, fabrication, agriculture and perhaps a few others.

Starches: These are the service industries that do not directly produce things.  They take care of other needs such as doctors, attorneys, retail sales, office workers of all kinds, psychologists and other services.

Sugars: This is government welfare, which is a type of industry.

Fats: This is manual labor such as plumbers, electricians, gardeners, landscapers, and many other similar heavy manual labor industries and businesses.

Oils:  These are manual labor jobs similar to fats (above), but occur in lighter industries.  They include manual labor that is not as heavy, such as chefs, waitresses, librarians, childcare workers, teachers, inspectors, mail carriers, delivery workers, shelf-stockers in supermarkets, check-out people in supermarkets, train conductors, bus drivers, taxi drivers, airline pilots and others.  These industries involve some manual labor, but not as much as those listed under fats above.

            Let us discuss some of these in more detail:

 

INDUSTRIES OR SOLID FOODS

 

Meats = heavy industry.  This includes steel, aluminum, other metals, mining, smelting, fabricating, and their sales and distribution.  These are somewhat toxic and polluting, but very necessary for a healthy economy, just as some meat is needed for a healthy body.

            Nations and societies that are “vegetarian”, meaning do not have much heavy industry, are always somewhat weak, just as are the vegetarian bodies.

 

Grains = the consumer economy.  This includes retail shops and large retail outlets, supply industries, shopping centers and mall, the media, charity organizations, and others that usually involve a lot of people serving other people.  These are very important for an economy because people like them.

Example 1. The mass media.  This consumer industry is critical for a modern, free market economy.  It informs the people about all sorts of matters from politics and sports to sales at shops, and much more.  It should also be a critical check on the activities of the government to reduce fraud, waste and abuse by the government.  It also teaches values, morals, religion, and other subjects to the people.

In fact, it is so critical that we believe that the president of the United States, at the present time, has the legal authority to shut down about half of the mass media outlets in the United States due to fraud. 

Fraud, in this case, means that these media, such as the New York Times, are not carrying out their stated purpose.  The New York Times’ slogan is “All the news that’s fit to print”.  This states that they will print the news, not propaganda or just opinion that is not the truth.  Since they are not doing this these days, they are committing fraud.

Of course, a judge might decide otherwise, but we bring up the subject because of the enormous importance of an unbiased and truthful media in any economy.

An enormous problem all over planet earth.  It occurs whether the media is privately owned or government-controlled.  In fact, the problem is much worse when the government controls the media.

When the media is in private hands, at least there are usually competing media outlets, and the people can choose their favorite one.  In addition to producing choices, if a private media outlet lies or does a bad job in some other way, people will stop reading or listening, and it will likely go out of business from a lack of viewers or subscribers.

However, when the government owns the media, as is the case in most command economies:

1) The people have few, if any choices of media.

2) No matter how bad the reporting or how phony the news, the government channels never go out of business.  In fact, their purpose is often to deceive the people with fake news.  The more of it they produce, the better they think they are doing.

A problem with the private media today is that secret owners support failing news outlets, such as the New York Times.  Otherwise, most mainstream newspapers and some television stations would go bankrupt and disappear.

Example 2. Charity. 

Definition. Charity is any private, voluntary giving programs to help the poor, disabled, retired, and other needy people in a nation or society.  It equivalent in nutritional balancing is blue corn. 

Charity is a wonderful food for any economy because giving in a voluntary way of your time, your money, or your efforts in some way benefits both the giver and the receiver in enormous ways.  It teaches hundreds of lessons about compassion, caring, efficiency, how to help others, how not to be taken advantage of, and others.

Charity may also be called private giving, in contrast to government welfare.  Private giving is almost always:

1. Far more efficient and effective.

2. More humane

3. Creates less dependency and laziness.

4. Much less costly for a society.

This occurs because private giving is generally local, the incentives are better, and it is less plagued with waste, fraud and abuse that occur with all government programs.

Government welfare is discussed below under the heading of SUGARS.

            The importance of consumer industries.  The above is an example of one of the critical consumer industries in any economy.  Do not listen to the left-leaning pundits who say that the consumer economy is not important. 

It is extremely important in an advanced society where most people do not work in factories.  It is the social life of the economy and a place where people survey the newest products and services.

Capitalism gives people many choices, which is very good.  It is not a “waste” to have 200 different automobiles to choose from or 1000 different types of shirts to choose from.  These are staple items and important to have in many varieties and styles so people can customize or adjust their environment to their likes.  This builds individuality, which is an intrinsic value in an economy.

 

Vegetables and legumes = the agricultural sector.  This is also a vital sector, so that the nation or society can feed itself.  It is one of the strengths of the United States, for example, over Europe, Canada and some other nations.

            Even if the quality of the agriculture is not good, such as in the poor nations, it is an important sector.

 

Dairy = the helping professions.  This includes doctors, nurses, teachers, social workers, psychologists, and similar professions.  They are important but not as important as one might think if the people are healthy.  They are important at this time in the West because the bodies are so ill, and this needs to be solved with nutritional balancing, since medical approaches just make people sicker in the long run.

 

Fats and oils = manual labor sector.  These are builders, repairmen, trash haulers, some factory workers, and craftsmen of all kinds.  They are essential for an economy, especially a robust economy that has a faster oxidation rate.  They are less essential for a slow oxidizer economy.

 

Fruit = the entertainment industry.  Fruit is sweet and “entertains” the body.  Everyone likes it, but it provides little value, in general.  It includes some movies (not educational material), most television, most radio, some print material and industries such as art, music, dance, sculpture and related professions.

            A little bit is okay as a garnish or “topping” in your life.  However, more than this is unhealthy for an economy, just as fruit is basically an unhealthy food group.  For details, read Fruit-Eating.

 

            Salt = advertising.  This is an essential food.  It is advertising.  This will shock some readers who hate all the stupid ads they must watch and listen to every time they turn on the television, radio, or computer.  However, advertising is necessary in a free economy to inform others of your products and services.  Without it, “the food has no taste”.  This means that things do not go well for the economy, which thrives on information.

              However, there is “good” salt (natural sea salt), which is unrefined, pure, and wholesome.  Notice it comes from the sea, which is the reservoir of value or money that is all around us.).

            There is also refined “junk” salt, which is what most people eat today.  It is bleached, the trace minerals are removed, making it deficient in vital nutrients, and toxins are usually added such as aluminum.  These are advertisements that have been faked in some way to suck in the customers with false promises, chic female models who have never even tried the product but are promoting it falsely, and with subliminal words, sounds, or images, and other “toxins” added to them.  You should be upset to have to view them!

 

Water = cash or ready credit.  The water industry or economy of the body is the same as the financial services industry.

 

Proper operation of the financial services industry.  The purpose of this industry is to help people store, safeguard and invest their money.  They also make loans for personal or business uses.

The industry consists of the banks, investment counselors, estate planners and asset management companies, and includes some attorneys, accountants and bookkeepers.

Today, this is one of the most corrupt industries in every nation.  They often steal their clients and depositors money and get away with it.

Proper financial service operation.  Financial services should operate on a fee basis, not a commission basis. 

With the commission system, the client does not pay a set amount for the services of the investment counselor.  Instead, the investment firm or counselor makes money by selling products that have a load, as it is called, built into them.  This is a hidden fee that is included in the price of the stock fund, bond or whatever the client buys through the broker or financial consultant.

With the fee-based system, the investment company or bank charges a set fee for their services – usually every quarter or perhaps annually.  The fee can be a set amount of money.  Usually, however, it is:

1. A percentage of the assets under management, OR

2. A percentage of the profits or gain that has accrued in the client’s account during the quarter or year.

 

Advantages of the fee system. The fee system is far more transparent and simpler to understand.  Also, when set up correctly, (#2 above), the investment bank or financial counselor has a greater incentive to make money for the client.  With option #1 above, there is no direct incentive to make money for the client.  Of course, if the investment counselor does not make money for his clients, they will likely go to someone else.

In the economic balancing model of how an economy should work, only the fee-based investment services are permitted.  The reason is that with the commission system of charging for financial services, there is too much opportunity for cheating.

 

Liquids, as a general rule, are analogous to “liquid” money in an economy.  Liquid assets are those that one can access quickly and easily to pay for all sorts of items one wishes to purchase.  This “liquid” is absolutely necessary for the proper working of any economy, just as water is essential for a human body.

If an economy is “dry” it means there is not enough cash or easy credit around.  This slows an economy down a lot.

Many kinds of water.  Just as there are various types of drinking water, there are a number of types of water in an economy.  They include:

1. The best.  This is gold. Its value is very stable and it is recognized around the world.  Gold is fairly easy to use for big purchases.  It is not convenient for small purchases, however, and it is somewhat unsafe and cumbersome to carry around.

2. Paper money or coins. This is good for small transactions and easy to use.  Its value is not too stable, so hoarding it is probably not a good idea in most economies today.  However, for everyday transactions, it is excellent.

3. Credit cards.  This is not as good.  Credit cards create cash when they are used.  However, it is created as a loan, with interest.  If one pays the credit card bill in full, on time, there is no fee.  However, if it is not paid back in full and on time, one must also pay interest on the loan.

Many people in modern societies end up bankrupt due to interest payments on credit card debt. 

The analogy of credit cards in nutritional balancing is sugar water or soda pop.  It may seem to be okay, but it is unhealthy.  Sadly, many people live on soda pop because it gives them a little extra temporary “energy”, as do credit cards.

4. Debit cards.  This is better than credit cards because these do not create cash and they are not loans, upon which interest can be charged.  These are thus much safer for people than credit cards.  They also do not create debt in the economy.

Banks may charge fees for debit card transactions, but these are usually less than the horrors of interest payments that just keep accumulating month after month.

5. Loans, mortgages and lines of credit.  These are similar to credit cards, meaning that they create cash when they are set up.  However, unlike credit cards, the interest rate is usually lower and they are more regulated by the government.  In this regard, they are better than credit cards, but they are harder to obtain.

6. Checking accounts.  Checks are convenient forms of money. Checks create very short-term loans – just several days  until the check clears – and therefore do not add a lot of debt to the economy, unlike credit cards and other loans.  Therefore, checks are quite a good form of “liquid” for an economy.

 

Today, many economies, including that of the United States, are so “dry” that without credit cards and loans the economies would almost come to a halt.  This is very important because a debt-based economy is not as good as a wealth-based one.

A water crisis = barter.  If there is not enough cash in an economy, people resort to barter in order to obtain what they need.  This is very inefficient and does not work well.

There is a direct analogy between dehydration in a body and barter in an economy.

 

Coffee = small bribes.  Coffee is a liquid, meaning it is a little money or cash.  However, it is a toxic stimulant when taken by mouth.  It is not helpful for one’s health, but one cup is not too harmful.  Drinking a lot is harmful, as are a lot of small bribes in an economy.

In many nations, people love their coffee.  The economic analogy is that in many nations, people love little bribes that go along with payments of all kinds.  Some are tips given to service workers, and some are “incentives” and other little add-ons.  Some of this activity in an economy is not too bad, but too much is not good.

 

Toxic chemicals in foods. These are the extra fees, penalties, interest payments, application fees, strange taxes and other hidden and overt charges that are added to many items in the financial world.

These harm the consumer in many little ways that can add up to a lot of money, in some cases.  For example, some credit cards have “fine print” with up to a dozen different kinds of fees and penalties.

The closer one stays to “natural foods” in the financial world such as gold or cash, the fewer of these one encounters.  If one uses the fancier “prepared foods” in the financial marketplace such as credit cards and Wall Street investments, one can easily get poisoned with toxic fees and hidden charges.

 

Refined sugars (glucose, dextrose, maltose, honey, maple syrup, corn syrup, etc.)  In an economy, these are all kinds of welfare programs.  They include retirement programs such as Social Security in the United States, Medicare, Medicaid, Food Stamps, disability programs, unemployment programs, free cell phones given by the government, and hundreds of others.

They are “refined”, meaning they are missing essential elements.  In an economy, this may mean, for example, that one does not have to work for them.

Sugar (welfare) is simple to “digest”, or take in.  However, it is very yin or weakening.  It slowly ruins the health of the economic system, just as its ruins the health of human beings. 

The more sugars or welfare that is around, the weaker an economy.  This is an ironclad rule!

            The alternative to welfare programs is  charity.  It is a completely different food item described above under GRAINS.

 

Junk food! 

Definition.  This is when people spend their hard-earned money in return for very little.

Junk is rampant in most of the world’s economies, as it is in many people’s diets.  The United States is one of the worst, but fortunately also has the most “good food”, which helps balance it out.  Here are examples of junk food in an economy:

Fake news. The controlled news media in all nations feed most of the world’s people a constant diet of slanted or even entirely made up or fake headlines and news stories.

Gambling.  Governments around the world now control most of the gambling industry such as lotteries, “Powerball”, betting operations, casinos and more.  They falsely teach that these are real industries that pay for education, welfare and other programs.  However, they give no real value.  They just take money from some and give it to others, while wasting people’s time and energy.

Prostitution.  This is a sad one.  99% of prostitutes were abused, raped, beaten, trafficked, and almost killed to make them sell their pretty bodies for a few coins.  Yet libertarians around the world tell us it is a legitimate industry that “satisfies a need” as with all industries.  It is not true.  Prostitution mainly spreads disease, ruins marriages, adds more abuse for the prostitutes, and cheapens sex.  Wake up, libertarians!

Most health care.  Most health care the world over is an enormous waste of money and time!  It makes no difference if it is “private” (read horribly controlled and regulated) or “government”, “universal” or “socialized”, though this is even worse).

I know it will shock some readers, but most allopathic and even naturopathic and holistic medical care does not build health.  It just keeps you going a little longer, while intoxicating the body, throwing the body further out of balance, and in fact shortening the lifespan.

Most surgery is not needed if people were taught how to eat and live correctly.  Most remedies of all kinds would not be needed if nutritional balancing methods were employed instead of the current healing methods.

I know the natural medicine people will hate me for saying it, but we find that homeopathy, most herbs, most hormone therapies, most IV vitamins and some other so-called natural therapies are not all that much better.  They are much less toxic than allopathic drugs, which is an improvement.  However, they are all very yin, and this is a powerful toxin.  Please read about this in articles such as The Healing Arts.

Shoddy products.  Thousands of these exist.  In part, this is unavoidable in an economy.  Companies make products that break easily, do not function well, are toxic or harmful in some way, or just clutter up the house. 

In a socialist economy, shoddy products are often all that is available and people must put up with them.  It is a big part of the horror of a socialist nation or society, meaning one in which there are few choices and most decisions are made by a powerful central government.  Other horrors of socialism are shortages and just a lot of stupidity, both because bureaucrats are not the smartest people and because even if they are smart, as are some, they cannot know the needs and wants of millions of their constituents.

In a capitalist economy, people have choices.  So they shun these products, tell their friends to do the same, write “consumer reviews” about them, and the “junk” tends to disappear.  However, new ones pop up continuously, so it is an ongoing process.

Many of these “junk” products are heavily advertised, or they would fade away by themselves.  In some economies, the government forces the issue by prohibiting advertising for things like cigarettes, marijuana, medical drugs (the worst junk products today), alcoholic beverages (another bad one), gambling and prostitution.

Pornography.  This is another junk industry.  The poor women who make the movies and are in the photos were almost all raped, beaten and/or trafficked to get them to do it, and the pimps are generally high-level criminals who have all spent time in prison.  Yet it is promoted as another “legitimate” industry, particularly by libertarians in Western nations.  In fact, it is almost entirely a criminal industry.

Criminal industries. Certain industries such as pornography, drugs, medical, prostitution, gambling, and sometimes others have been taken over by organized crime syndicates such as the mafia and other rogue groups.  They are thoroughly toxic to everyone involved and serve mainly to funnel money to the bad people of the world.

College and universities.  This will shock some readers, but most college educations are junk!  People pay up to $50,000. per year in America and elsewhere to send their sons and daughters to basically sewers and cesspools of socialist and communist thinking, drugs, alcohol and rape.  Please wake up, people!  Read The College Trap.

 

Minerals = truthful content. Junk food has few minerals in it.  This is one of its main problems.  (Another main problem is toxicity).

Minerals in an economy equal truthful content.  An economy must have a lot of truth in it so that people can make excellent economic decisions.  Otherwise, economic decisions will be incorrect and the entire economy suffers. 

            Just as everyone today is mineral-deficient, causing almost every disease imaginable, so the world’s economies are starved for truthful information that is kept from the people by the controlled media, controlled education systems and controlled political systems.  The result is many economic problems.

 

DIGESTION

 

            Definition.  Digestion is a process of integration and assimilation. Economies must not only have industries (foods), but they must assimilate and integrate those businesses with the rest of the economy.  If this does not occur, or if it occurs too slowly, the economy suffers.

Analogy with nutritional balancing.  This is similar to digestion in a human or animal body.

              Examples.  When a new business opens up, for the best chance of success, it is not enough to just open the doors and stock the shelves.  The owners of the business need to integrate and assimilate into the local economy.

            They do this by getting to know other businesses, especially those that are similar to theirs or that supply them with raw materials, services or other things.  They also reach out so that other businesses and the public know that they exist, and know the nature of what they offer.  This is what is meant by digestion in an economy.  The following concept are related to digestion:

 

1. Digestion is a parasympathetic activity.  This is a very important principle in economics.  Economies are either in parasympathetic mode, or in fight-or-flight mode, also called sympathetic mode.  Digestion works much better and faster when an economy is in parasympathetic mode.

Therefore, if digestion is not going well, meaning businesses are not integrating well together, look to see if the economy is in sympathetic mode.

              Sympathetic mode.  This is an anxious, fearful, unstable mode of operation of an economy.  At times, it occurs naturally due to a natural disaster, for example, such as a massive storm that knocks out power, collapses bridges, flood businesses and more. 

Normal business stops or slows, and many businesses must fight just to survive until things get back to normal.  This type of sympathetic state is less common and less threatening, however, than another type. 

Government-induced sympathetic state.  The worse type occurs due to deliberate attempts by a government to upset, scare, destabilize and harass businesses.  This is more common than one might imagine.  In many socialist and communist nations, business is frowned upon and seen as a “necessary evil”, perhaps until the “great revolution” sweeps away all vestiges of “capitalist oppression”.

As a result, these governments harass businesses in many ways.  They pass many and varied regulations and tax laws, some of which are insane.  Businesses must comply with all these burdensome rules and taxes.

They may raid businesses on silly pretences, sending in armed troops who destroy inventory and drag people off to jail for no good reason.  They impose strange fines for non-crimes.  They may spread lies about businesses, which scares away the customers.  A hidden goal of all this is to keep the business owners off balance and upset.

The effect of all this is to move the economy into a fight-or-flight or sympathetic mode because the business owners are continually anxious about what the government will do next.  This is very harmful for any economy, yet it is common in some nations.

 

2. Cooking.  Industries and businesses need to be “cooked” before starting up.  Cooking, in an economy, is adding fire and fiery experiences to a business setup to prepare the owner for the real world.  Cooking prepares businesses for all sorts of emergencies and situations.

Cooking cleans up certain toxins in new businesses, in particular.  See below for a discussion about this.

Proper cooking also gets rid of structures that are in the way, such as fiber (fiber = non-nutritive incidentals or garbage).

Raw Businesses. A raw business is one that starts up with little or no preparation.  This means that the owners are not prepared for the real business world, with its business cycles, accounting problems, legal risks, employee problems and more.  As a result, raw businesses fail much more often, are more yin, and are more trouble.

Analogy with nutritional balancing.  This is analogous to cooking food, which makes the nutrients it contains much more available and prepares the food for digestion and assimilation.  Raw food is popular today, but our bodies cannot extract nearly as much goodness or nutrition from raw food.

Also, raw food is often unclean, even if you can’t see the bacteria and parasite eggs on it.  This is true in business, as well.  Raw businesses often have toxic, unrealistic or simply wrong ideas that need to be cleaned up before the business starts.  Otherwise, they can easily doom a business.

Examples.  When a franchise business opens, it is well-cooked.  This means that it come with many features “baked in”, such as legal help, personnel help, advertising help, management help, accounting and bookkeeping help, and even more.  This is the reason why franchises do well and why people like them.

Overcooking.  It is possible to overcook a business.  This means giving people so much preparation for doing business that they become confused, overwhelmed and discouraged.  Things fall apart, just like overcooking your vegetables.

 

Crunchy, al dente or half-baked businesses.  These are businesses in which the owners thought they were prepared to go into business, but they really did not prepare well.  Preparation was “half-baked”.  Food should be cooked until soft.

 

Fussy eaters.  These are governments that pick and choose businesses according to whim.  They control business through business licenses, so they can accept or reject various types of business.  Economies that operate this way are always unbalanced and usually quite unhealthy.

 

Gourmets.  These are business school graduates, usually with a Masters in Business Administration (or MBA).  They know the theory and language of business, but have little or no practical experience running businesses in the real world.  As a result, they often make big mistakes in guiding governments or even corporations who hire them as consultants.

Analogy with nutritional balancing.  Those with business degrees are like people who seem to know a lot about food, except they don’t know much about nutrition, which is what really matters.

 

Food combining.  When new businesses are brought into an area, it must be done carefully.  The right combination is important.  Otherwise, “digestion” will be slow or may not occur at all.  It is best to bring in businesses that are somehow related to each other.  This will help them integrate into the general economy more easily.

Analogy with nutritional balancing.  This is like eating foods with similar digestive requirements in order to facilitate good digestion.  It is quite important in many people.

 

A stomach ache.  Bad food combinations, meaning bringing in too many businesses too fast, or the wrong types, will cause a stomach ache for an economy. 

This is common, in fact, in some areas of the earth.  The worst situations are often urban renewal projects.  Here, too often “raw” businesses are brought in quickly and it looks good.  However, they don’t mix well and they are not prepared for the challenges that businesses face, and things do not go well.

Better “food combinations” often occur in shopping malls.  There, most of the businesses are franchises, so they are “well cooked” before they begin.  Also, they are often well-capitalized so they can survive the first year or two of existence fairly well.

Even the combination of businesses is often better because the owner of the mall has a strong vested interested in seeing the businesses survive.  If the owner thinks that a business will not “fit in” or combine well with the other businesses in his mall, he will often not allow them to rent space.

 

Leftovers.  These are businesses that have failed for one reason or another.  Like food leftovers, some are in fairly good condition and failed due to a natural disaster, perhaps, that destroyed their inventory or did other lethal damage.

Other leftovers failed due to poor management, employee problems or for other reasons.  Some of these need to be thrown away because they are not nutritious for the economy.  Others can be reused or recycled if the management is good and the business concept also valid.  A truly wise government will assess the reason for business failures and will help some failed businesses start up again. 

 

Order of eating foods.  When bringing in new businesses, it is best to begin with construction and heavy industry.  Later, one can bring in other “lighter” businesses.

Analogy with nutritional balancing.  This is the same as eating the protein in your diet first, followed by the vegetables and/or starch.

 

IIA. THE SEVEN CENTERS OF A NATION OR SOCIETY

 

            This topic is included because, while not directly related to basic economic theory, it is vital information for any nation or society.  We will explain it in more detail later.     

Just as every living being has seven physical energy centers that regulate and control its activities, nations and societies also have these seven centers.  These centers are not tied together in the same way as they are in a living body, but they have the same roles as those in the body.  They are:

 

1. The Defense Department.  Every viable nation or society must have means to defend itself against intruders, invasions, treason, sabotage, subversion and other direct life-threatening situations.

 

2. The Commerce Department.  This is in charge of regulating trade, transportation, commercial treaties between nations, and everything else having to do with trade.

 

3. The Justice Department or Legal Department.  This is in charge of seeing that the laws are made and carried out and judged properly.

 

            4. The Sociological Department (sometimes called welfare department).  This is in charge of managing everything to do with the population – their health, numbers, psychological well-being and more.

 

            5. The Communication Department.  This department regulates all communication such as telephones, cable systems, wireless systems such as radio and television, satellite communication and perhaps others.  It is a nerve center.

 

            6. The State Department or Department Of External Affairs.  This department regulates all treaties and political interactions with other nations or societies.  It is not about waging war, but rather maintaining good relations with others and spreading the values of the society to others.

 

            7. Oversight And Coordination Department.  This is a culmination of all the others.  It is essential in a nation or society.  It might also be called a council of advisors or joint chiefs of staff.  Its role is to make sure all the departments work together to the same ends and in harmony with each other.

 

III. INTRINSIC VALUES IN AN ECONOMY

 

LIBERTY

 

            Definition.  Liberty is the ability to make one’s own economic decisions inside of a legal framework that protects the property and integrity of each individual.

In the economic balancing model, liberty is an essential quality for a healthy economy.  The reason is that liberty enables people to make the best possible economic decisions.  By so doing, they create the smartest and wisest possible economy.

 

LAW AND ORDER

 

Definition.  These are two pillars of any nation, society and economy.  Law and order refers to a legal, moral and perhaps other sense of what is right and what is wrong.

The laws need to be simple, short, to the point, written in simple language, enforceable, and they must apply equally to everyone.  The latter is sometimes called equal justice.

Order means that the laws are enforced correctly, rapidly and thoroughly.

 

More about laws.  Laws in any society exist at different levels and are of different types.  All of them are needed.  Here are the most important types of laws.

Moral laws or morality.  These are often dictated by a religion that the people follow.  Examples in the Western world are the Ten Commandments of Moses, for example, and the Golden Rule to do unto others as you wish others to do unto you.  In the Orient, and in the Bible, the law of karma or “As you sow, so shall you reap” is another powerful moral principle or law.

These laws are usually not written in law books, but the people follow them because the religion teaches that if they are not followed, one will suffer either in this life or the afterlife.  Nations that lack these moral values generally do not have vibrant economies, no matter what other laws they have in their lawbooks.  For some reason, moral laws or religious laws are needed.

Common law or traditional law.  This is often an unwritten code of law that has been handed down from generation to generation in some societies.  It works, so it continues to be used.

Constitutions.  Another kind of laws are the constitution of a nation or society.  These are the basic contracts between the government and the people.  They should be short, clearly written, and understanding by all the people.  They are very important laws.

Statutes.  These are laws passed by legislative bodies such as the Congress, Senate, the parliament, the Knesset, and similar councils present in every nation.

Implementing regulations.  This is a very dangerous type of law that is used in modern nations of the West.  What occurs is that the legislature passes a statute or law that is general.  Implementing the law is left up to government bureaucrats who write the regulations, which are specific rules about how to carry out the law.

The problem is that the rules and regulations can be written in a way that distorts or even totally subverts the original intent of the law.  Examples of the perversion of the statutes are the rules by the Obama administration in the USA making carbon dioxide, a vital gas on planet earth, into a pollutant and then mandating that it must be gotten rid of.  This is nothing short of insane.

Another example is the rules about automobiles on planet earth that basically destroy the hybrid car concept.  This is explained fully in the article, The Regulatory State.

Case law.  This type of law comprises actual legal cases that have been decided by juries or judges.  It is a very important kind of law because no written law can take care of every instance or every situation.  Therefore, people bring cases to judges and juries and they are charged with applying the principles of the laws of the nation to every possible situation.

Once again, it is important for a nation or society to have ALL these types of laws if it is to have a vibrant economy.  Creating this legal framework is not an easy task, and is one reason for the failure of many economies.

 

Levels of laws.  These are laws at the national, state, province, county, city and even community level.  A healthy economy needs laws to be distributed and diversified in this way.  Reasons are:

1. It prevents too much concentration of government power at one level which powerfully contributes to a more stable governmental structure.

2. Economics, by its nature, is local, at least to a degree.  Just having national laws is not usually enough to regulate the local economies. 

3. It allows more people to participate in the three-phase process of making the laws (legislative activity), carrying out the laws (executive activity), and judging the laws (judicial activity). 

The idea of having three equal branches of government, called separation of powers in American law, is very helpful to build a vibrant economy.  America is the leader in identifying and separating these three governmental activities into different departments of government in order to be a check on government power and a great stabilizer of the nation.  The concept actual comes from a phrase in the Bible that “God makes the laws, carries out the laws, and judges the laws”.

Dictatorships, and socialist welfare states always tend to combine two or even all three of these functions in the same agency or person.  This is always a form of tyranny and not helpful for an economy.

 

A STABLE GOVERNMENT

 

Definition.  This is a government that exists by the consent of the governed, that respects human rights, and that operates efficiently and with a minimum of corruption and waste.  This is a must for an advanced economy.  Some details about a stable government are in the section above this one.

 

PRIVATE PROPERTY RIGHTS

 

 Definition.  Private property is important in the economic balancing model of the ideal economy.  Private property gives people incentives to care for and improve their personal and business territories, and time has shown private ownership of property to be a great boon to an economy.

There are at least three aspects to private property rights.  They are:

1. The right to buy and sell property as one sees fit.

2. The right to utilize one’s property as one sees fit.

3. The right to avoid taxation of property that puts ownership of the property in jeopardy.

Nations that do not have clear and strong private property rights have much worse economies.  No one is willing to invest much effort, time and money into a building, factory, or farm if there is a chance that the government will suddenly decide to take the property away.

The only way a government should be able to take private property from an individual is for a public use such as a roadway, and never for private use.  In the event that a government needs to take private property for a public use, they must also compensate the property owner adequately.

The other sin of governments today is to restrict property owners from using their property as they see fit.  The usual excuse to restrict land use is to protect an endangered species. 

Most of this is not justified, except that zoning laws are fine.  These are laws that limit the use of property in specified areas to certain types of use such as commercial, residential, or other.

 

PAUSES

 

Definition.  A pause is some kind of break from one’s regular routine.

Examples.  People in economic situations go through daily pauses when they come home and go to sleep at night.  There are also weekly pauses for the Sabbath observation, holidays when businesses close, and “natural” pauses such as a large snowstorm that shuts down the area for a day or two until the snow is cleared away.

Pauses are important for an economy because they give people a chance to rebalance themselves, reflect, take inventory, make repairs to machinery, change direction, and more.  Often pauses are used for family time, vacations, recreation, hobbies, social time and more.

 

BUILDING INDIVIDUALITY

 

            Definition.  This means activities that enhance one’s sense of oneself.

              Examples.  Reading is very good for this.  Sports are okay, but not terrific.  Learning anything is good.  Making or building things is good.  Working with others is also good.

              In the economic balancing model of how an economy should work, building individuality is very important.  The idea is not to be just a cog in a vast machine.  It is to be an informed producer, consumer, family member, friend and more.  This builds a healthy, vibrant economy.

Little cogs in a machine are actually dangerous, as they all act as a herd and can make bad economic decisions together.  Individuals tend to make better economic decisions, and this is the key to a “smart” economy.

 

TOO MUCH INFORMATION

 

            Definition.  This simply means plenty of market-related information such as product reviews, advertising if truthful, descriptions of products and services, and more.

A free market economy thrives on information.  There is really no such thing as too much of it.  There is only too much of deceptive and wrong information. 

 

III. THE NA/K RATIO – THE CONSTITUTION

 

              The sodium/potassium ratio mainly has to do with the constitution of a state, nation or society.  More specifically, it is:

1. A rating system with which to evaluate the fairness and practicality of the constitution of a nation or society. 

2. A measure of how well the constitution is being followed or enforced.

3. To a lesser degree, the Na/K is a measure of the validity and fairness of all the laws of a nation.

4. It is also a measure of how well all the laws in the nation are being enforced or carried out.

            The constitution of a nation or society is the “DNA”, so to speak, of the society, giving it form and guiding its operation.

            Definition of a constitution.  A constitution is the contract between a population and their government.  It defines the role of the government, the powers of the government, and which functions and powers will be handled by the states or by the people themselves.  Thus it divides the tasks of setting up and running a nation or society into jobs delegated to various agencies and levels of government. 

            This is not unlike the DNA of the body, which dictates how the body will work, which organ will perform the work, and how they will work together.

            A constitution is much more important than one might think.  It is not just an old piece of paper to be ignored or even easily changed or amended.  The previous American administration did not like the constitution because it puts strict limits upon the power of the president, the congress and every other branch of government.  This is its purpose, in fact.  It is a format for the construction and operation of an entire culture of human beings or even other intelligent creatures.

            Examples.  The leading constitution on our planet is the United States National Constitution.  We rate it at 1.7 out of 2.5.  Because this is a human society, it is helpful to rate things relative to the ideal of a human being.  The ideal human Na/K is 2.5. 

            A rating of 1.7 means that the US National Constitution could use some work to be as good as the design of a human being.  However, it could be much worse, as is the case with most of the other constitutions on the planet.

            For example, the next best national constitution is that of Great Britain.  It is relatively new, having been written only about 150 years ago.  It rates at about 1.

            Readers who are familiar with nutritional balancing science know that a Na/K ratio of 1 is a cutoff point, below which we call it extremely low or a trauma Na/K.

            The next best constitution on earth is that of France. It rates about 0.85, which is not very good.  All the others, of which there are hundreds, are even worse.

            A low Na/K ratio is also called a chronic stress or give-up pattern.  The reason is that when the constitution is poorly constructed, the people have little hope of getting out of poverty, so they always feel stressed and often feel like giving up.

 

            Does this have anything to do with the minerals, sodium and potassium?  Yes, it does, but this is much more esoteric, so we will not discuss it here. 

 

IV. THE OXIDATION RATE = THE FULL-TIME, PRIVATE SECTOR EMPLOYMENT RATE

 

            Definition. In a society or nation, the oxidation rate is calculated based on the amount or percentage of the population involved in private sector employment only.  It is, of course, an average since the employment rate changes minute to minute.

Other economic measures can be used to measure the oxidation rate of a nation or society, but private sector employment is usually the best.  Others include the pace or velocity of money exchange, the gross domestic product or GDP, the growth rate in the economy, or other general indicators of economic activity.

 

Analogy with nutritional balancing. The oxidation rate is a very important measure in nutritional balancing.  It has to do with the rate of metabolism of an organism.

           

WHAT AND WHOM DOES THE PRIVATE SECTOR EMPLOYMENT RATE INCLUDE?

 

            Those included.  It includes office and factory workers, farmers and manual laborers.  It includes businessmen, investors, private school teachers and tutors, philanthropists, writers, musicians, artists, planners and hundreds of other occupations.

It also includes housewives who prepare food, raise children, and do yard work and do household chores.

 

            Those not included.  It does not include the children of the society or nation.  This is true even if they help their parents with farm work or other tasks. 

            It does not include those who are retired from work and mainly stay at home watching television or playing cards, for example.  It does include a retired person who has taken on a new job, such as raising his grandchildren or helping his sons with their business.

            It does not include volunteer workers, even if they work full time or more.  These are people who assist at the library, the hospital, the homeless centers, the daycare centers, and in many other places.

            It also does not include the sick, the mentally ill, or criminals in prison.  It also does not include those in criminal enterprises such as prostitutes, money launderers, robbers, rapists and others.  It also does not include those who work in gambling casinos and bars for example, because they do not create enough value.

            Interestingly, it does not include ANY government employees.   It does not include government postal workers, policemen, firemen, public school teachers, office workers, government construction crews, government scientists, government researchers, legislators, bureaucrats, mayors, governors and all others employed by local, county, province, state and national governments.

 

WHY NOT INCLUDE GOVERNMENT WORKERS IN THE EMPLOYMENT CALCULATIONS? 

 

The short answer is that they do not provide enough real value to an economy.

I know that many people will not agree with this perspective.  However, we find it to be true.  Problems with businesses, both private and government, are classified in economics as fraud, waste and abuse.

            Fraud means cheating – by the public, by employees and by others.

            Waste means inefficiencies, stupidity, and lack of oversight.

Abuse means corruption, which can occur in many ways at many levels.

These problems are much worse in government programs than in private ones.  Here are examples of why this occurs:

 

1. Politics.  All government agencies and programs suffer from political intervention.  This is the intrusion into the business aspect of the agency by legislators, governors, presidents and perhaps others.  This usually has the effect of reducing the effectiveness of the agency.  Private businesses have much less of this serious problem.

2. Corruption.  All government systems and agencies are subject to fraud moreso than private companies.  This is because they are often distant, less well-policed, and wield a lot of power that makes them a target for private interests, foreign governments and other invaders and cheaters.

3. Waste.  Governments simply have much fewer incentives to keep track of money and other resources.  The money is someone else’s and if one needs more, one just asks the legislature for it.  This is very different from the private sector that must show a profit and must compete with others for business.

4. Hidden agendas.  Some readers know that the hidden goal of many government welfare programs, for example, is to spy on the people and make the people dependent upon government handouts.  A related hidden agenda is to control the people using adhesion contracts and other methods.  Adhesion contracts are simple-looking agreements that, in fact, have a lot of fine print that lets the government spy, regulate you, listen in to phone converations and more.

At other times, the hidden agenda is to “look good” for the next election or to impress the donors to a senator’s campaign, or just to inflate the ego of the leaders.  Private sector companies have many fewer of these agendas.

5. Stupidity.  This serious problem with all government programs occurs for several reasons:

A. Cannot attract the best minds.  Governments do not attract the brightest people.  The brightest do not want to deal with the politics and usually rigid rules.  They can also make more money in the private sector if they are very talented.  Governments tend to attract more security-minded people, which are not the smartest ones.

B. Politics.  The programs are usually political compromises, since that is how governments function.  This may have some benefits, but often interferes with the functioning of the programs.

C. Fewer demands.  As a result, the workers become lazy and dull.  The main difference is that if the government program does a poor or inefficient job, it keeps right on going.  In the private sector, it must stay up with its competition or it goes out of business.

D. Rigid rules.  These are needed, at times, to limit corruption and fraud.  However, they tend to get in the way of the efficiency of the business.

6. Perverse incentives.  Whether or not one understands all the reasons for problems with government workers, the truth remains that government workers are always plagued by what are called in economics perverse incentives.  These are forces that “built-in” to government jobs that interfere with hard work, efficiency, intelligence and effectivenss.

For example, a private business that does not do its job well tends to go out of business.  A government agency that does not do its job well often just grows larger because they demand and are usually given even more money to “do a better job”. 

Another example is that if a government agency is set up to solve a problem such as poverty, the more they solve the problem, the smaller the agency becomes, and the workers don’t like this because it threatens their jobs.

Conversely, the more poverty there is, the more secure the workers’ jobs, and often the more important the workers become in society.  This often leads to higher salaries and better benefits for the workers.  As a result, the workers do not do a good job on the problem, though they may say they do.

The same perverse incentive applies to legislators.  If society is running smoothly, there is less need for legislation, so the legislators become less important, which they don’t like.  However, if society is in trouble (often due to bad laws the legislators pass), then the legislators have more to do and become more needed and important, which they like.  Also, the larger the government, the more influence legislators have, which they also like.  The end result is the growth of laws and government that does not serve the needs of the people, but rather serves those in charge.

Another example is that if a government agency grows smaller, the workers will have less opportunity to advance themselves in the agency.  There will be fewer supervisor positions available, for example.  However, if the agency becomes larger, opportunities for “advancement” for the workers increases, which they like. 

Also, in this example, if the agency grows in size, the more experienced workers will have more power because they will have more new workers under their control, which people like, as well.  As a result, bureaucrats in all agencies tend to grow their agency.  This usually requires that they subtly create more of the very problem they are supposed to solve.

7. More paperwork.  This is needed in bureaucracies to help minimize all the problems listed above.  However, it wastes people’s time and thus makes for a less efficient business operation.

8. Petty tyranny.  Government programs always carry the force of law.  Often, they use this force against the people.  This is disruptive, often stupid, wasteful and harmful for the people.  Governments often justify this behavior by saying it is “for the people’s own good”.

This is a serious problem with all government programs that does not occur with private businesses that do not have the police power of the state behind them.

9. Generous benefits.  As a rule, government employees have more generous vacation, holiday, health care and other benefits than workers in the private sector.  This is because there is less cost accountability in the government, so they give their people more benefits.  This is expensive and reduces the productivity of government workers.

10. Skewing the marketplace.  A government-owned or government-run business is a totalitarian intrusion into a market economy.  It does not follow the standard rules as do private sector businesses, such as the law of supply and demand, the law of diminishing returns and others.

The result is that government enterprises almost always skew the marketplace, often in severe ways.  In America, for example, the health care sector, the education sector, and the welfare sector have been horribly impacted by competition from government programs.  In some other nations, it is even worse.

11. Less redress.  Suing the government if you are mistreated is more difficult, in most cases, than suing a private individual or company.  At times, it is completely forbidden.  When it is allowed, one has to go up against a very large entity that has the police power of the state behind it.  Less opportunity for redress means that problems are not corrected as well or as fast in government programs.

12. Fraud.  It is often easier for private individuals to cheat the government than it is for them to cheat private sector businesses.  The reasons are that private businesses often check things more carefully and are more likely to take legal action against a cheater because they need the money or merchandise.

Also, private business is usually simpler, with fewer opportunities to cheat compared to the larger amount of paperwork involved in government programs.  Also, private businesses are often run more locally and know their customers better than distant bureaucracies.

13. Actual harm to society.  Some government jobs actually harm the economy.  This occurs for a number of reasons.  We have described one of them above – the incentive to create more problems in order to grow government agencies to solve them.

Another reason is that many government programs compete with similar programs that exist in the private sector.  This is a hidden problem, but a very real one.  If a government starts a large university, it tends to discourage private universities from being formed.  The government school usually relies on tax money to fund it, whereas the private school must rely upon tuition or private grants, and so it usually cannot compete with the government schools.

The same is true of government research, government health care systems, government welfare systems, government retirement systems, government construction crews, engineering crews and much more.

This is a very important reason that government employment is not counted as being of great value to a society.

14. Unions.  In many nations, laws allow public sector unions.  In America, for example, the teachers and service worker unions are among the largest and most powerful unions in existence.  As explained elsewhere in this article, unions are a plague upon a free market economy that reduce efficiency.

            15. Patronage or cronyism.  Too often, public officials hire armies of bureaucrats to give jobs to their friends and donors, and not because they are needed or even helpful.  In an economy, this behavior is called patronage or cronyism.  It is difficult to avoid!

              A confusing and related term is crony capitalism.  This occurs when government workers give money to only those businesses that are run by their friends or donors to political campaigns.  Often, the companies are phony, and are set up just to receive the money, and then they mysteriously go out of business and the money is reported as “lost”.

            The term crony capitalism is confusing because it seems like it is about capitalism.  It is not.  It is about corruption in government.

 

These problems affect ALL government schools, government health programs, government welfare systems and ALL other government agencies and programs.

             

What about more efficient versus less efficient workers?  For example, does a farmer who drives a large combine that hoes 1000 acres a day count the same as a farmer that uses an ox-drawn plow?

For this analysis, they count the same.  We know this is not exactly accurate, but it works and is easy to calculate.

 

PART-TIME EMPLOYEES

 

            Part-time employees are not counted as employed.  This is because it is a difficult area to assess.  One part-time worker may work 5 hours a week, while another works 10 hours a week, and so on.  The hours may also vary from week to week or month to month.  For this analysis, they are not needed, so they are not included in the employment figures.

 

V. OTHER MEASURES

 

THE CA/MG RATIO – LIFESTYLE PROBLEMS

 

            This is another important measure.  In nutritional balancing for bodies, this ratio is called the lifestyle ratio.  When it is too high, it indicates a problem with the person’s lifestyle.

            In the analysis of a society or nation, a high ratio above about 13.5 indicates something similar, but on a wider scale.  For example, if a lot of people are using illegal or recreational drugs, the ratio will climb.  Other things that cause the ratio to climb are homosexuality and unhappy relationships and marriages.

 

VI. PATTERNS IN THE ECONOMY

 

 

SYMPATHETIC DOMINANCE PATTERN

 

            Definition.  This is a special imbalance in an economy that occurs when the underlying economic fundamentals such as the oxidation rate are not good.  However, things appear to be okay because there is still a lot of economic activity.

              This is dangerous because the economy is running on stimulatory energy in all cases.  If it continues for too long, more serious problems will always occur that could lead to a catastrophic collapse.

            Sympathetic dominance always contains a lot of fear and worry, and often depressed mental attitudes.

              It requires a special corrective progam because a “standard” correction will not heal the problem.

Analogy with nutritional balancing.  The exact same thing occurs commonly in human beings, and at times in animals, and the pattern has the same name.  If not attended to, it can result in cancer or other serious health problems.

Examples.  America and Europe lost many of their factories in the late 1960s to the 1990s, and the trend is continuing today.  Yet their economies have not gone into total collapse.  Instead, they have moved into sympathetic dominance, which is a stage just before collapse.  One could argue that a few European nations such as Greece are very close to collapse.

The United States, in particular, is in a typical sympathetic dominance way of operating:

- There appears to be a lot of economic activity.  Many people still have jobs, and still go shopping. 

- However, many have lost their jobs, or their full-time, good-paying jobs.  The government manipulates the unemployment numbers to make things seem better than they really are.

- In other words, the economic activity is somewhat illusory.

- There is much fear and worry.

- The people suffer from many more mental problems such as depression and anxiety.

- The economy is tenuous, at best.

- Economic activity depends heavily upon stimulants such as food stamps, welfare, and other government spending programs.

- As a result of the measures in the paragraph above, the nation is deeply in debt, and it is getting much worse quickly.

- The economy is “skating on thin ice”!

 

FOUR LOWS PATTERN

 

            Definition.  This is a terminal or end-stage metabolic pattern.  It is the result of a great stress on the economy such as a war, serious shortages in the economy, an epidemic, perhaps, or some other trauma to the economy.

              Four lows is a situation in which the economy does not function properly at all.  Instead, it is disconnected with itself.  This means that one part of the economy does not communicate well with other parts. 

For example, if radio communication and the internet are stopped due to a war, advertisers cannot get their messages to the people.  As a result, people do not know about products that are available, and business slows down.

Four lows pattern can be thought of as an economy that is somewhat in a shut down sequence.  In the example used above, shutting down radio and internet are part of a general shut-down of the society.

            Analogy with nutritional balancing.  This is the same as a Four Lows Pattern in nutritional balancing science.

              Examples.  This pattern may occur after a war in which a lot of the industry of the nation or society has been destroyed.  It could also be the result of losing a war, which resulted in a takeover of the economy by a hostile enemy who does not believe in free market economics.

 

THE THREE AMIGOS – GOVERNMENT STIMULUS PROGRAMS

 

            In the bodies, a sign of trouble is the presence of toxic oxide forms of certain minerals.  We call them the amigos because they often occur together, like friends, which is the word in English for amigos.  In the bodies, the cause of this problem is weak glands and mineral depletion.  The amigos act as irritants and stimulants and keep things going, but they do so in an unhealthy way.

            A similar phenomenon occurs in societies and nations.  When the economy is weak, government programs are often put in place that stimulate the economy.  However, they are all compensations, unhealthy and bad for the economy in the long run.  Getting rid of them is not easy, however, because they serve a function, as do the amigos in the bodies.

            The societal amigos are of three main types, which correspond to the three types in the bodies, as well.  they are:

1. Tax breaks, including tax deductions or giving tax credits and other gimmicks for certain businesses or groups of people. (aluminum) 

2. Subsidies for certain businesses or groups of people. (iron)

3. Laws that protect certain industries.  For example, licensing laws protect medical doctors.  They do not protect the consumers of health care, who are forced to patronize only certain healers and use only certain healing methods that the government allows. (manganese)

4. Regulations that force people to buy certain products or services.

5. Monopoly legislation, which is similar to licensing.  It simply outlaws certain products and services, and benefits others.

6. Government infrastructure projects to employ people.

 

FOUR LOWS – EXHAUSTION OR COLLAPSE

 

            In the bodies, the worst pattern is often one called four lows.  It occurs when the first four macrominerals – calcium, magnesium, sodium and potassium – are all less than their ideal values.  This is a collapse, depression and discouragement pattern.  We also call it spinning your wheels in the ditch.

This pattern has an equivalent in a society or nation.  It is seen particularly in socialist welfare states where there is little real economic activity because most people work for the government.  The government, in turn, is very inefficient and does not really want to produce much value.  There seems to be economic activity, but it is minimal.  People become very discouraged and hopeless.  It can go on for years.

 

THE SHELL PATTERN (or calcium shell)

 

            Another important pattern is called the shell. Here things really slow down and it is a depression pattern.  It is caused by a very slow oxidation rate, meaning very low full-time, private sector employment.  The result is that the economy sort-of withdraws into a mere survival mode of operation.  People hoard money and goods, spend as little as they can, and the appearance of the economy is that of extreme sluggishness and depression.

            America and some other nations went through this condition in the 1930s after the crash of the stock market in 1929.  It lasted until World War II, which ended it by causing full private-sector employment.  This raised the oxidation rate or pace of the economy and ended the depression.  Many programs put in place to supposedly end the depression had the opposite effect.

            These were largely amigos – make work projects, infrastructure projects such as building huge dams, parks, roads and other things.  They helped with employment, but it was government employment and, for some strange reason that we will explain, it did not end the great depression, but rather prolonged it.

            The reason it did not end the great depression, according to this analysis, is because it was not stable work.  It was subject to political manipulation, it ended quickly, in most cases, and it paid a relatively small number of workers. 

            For example, one sees pictures of the construction of Hoover Dam in the United States, with hundreds of men pouring concrete into the dam.  However, that lasted only a few months.  Then it was over, and the men were sent home without jobs.  The workmen knew this was coming, so they did not purchase much with their wages and salaries, and the general economy languished.  It proved once again that government welfare jobs are no substitute for a strong private-sector economy.

 

THE HILL PATTERN

 

            This is a pattern seen in the bodies in which a person is excited and joyful.  It also occurs in societies and nations.  It is an achievement pattern, but at a mental level.  This means that people are happy, hopeful, looking forward to better days, and usually quite excited.  It can be read in an economy with this type of analysis.

           

THE BOWL PATTERN

 

            In the bodies, this is the opposite of the hill pattern.  The person feels emotionally stuck, and a good analogy is that of a spider or other bug that is trapped inside a toilet bowl or sink bowl and cannot climb out.

            This occurs in societies or nations, as well.  The people feel trapped, stuck and feel they cannot get out of it.  The economy is like a sink that traps the people and keeps them in a rut.

 

DOUBLE LOW RATIO, DOUBLE GIVE UP, OR SLOW DEATH

 

            An extension of the pattern above is if both the Na/K ratio and the Ca/Mg ratio are low.  This combination is called double low ratio, double give-up or slow death.  It is the same as a low Na/K ratio, only more extreme.

            This pattern occurs quite commonly in some nations on earth.  Basically, the thugs run the economy.  Often, they carve up the nation into “territories”, like wild tigers who have their own territory and no competition in their own area.  They “own” everyone and everything in the area, or at least they control them and feed off them.

            For those that work and live in such areas, life is bad.  Women are abducted and raped with impunity, men are robbed or killed with no punishment, businesses languish because no one cares much, the neighborhood deteriorates in appearance and function, and the area is in a death throe. 

            Drug-infected areas often look this way because most of the economic activity is controlled by a gang or group of thugs.  They  don’t care what the neighborhood looks like as long as they collect their due and remain in control.  It is a serious infection that can be fatal.

 

STEPPING INTO LIFE – ECONOMIC RECOVERY

 

            This is seen, at times, in the bodies and indicates a person who is joining in the active life of their community or nation.  It is considered a positive pattern.

            On a  hair mineral test, the pattern looks like

 steps going down to the right.  Seen from the side of an airplane, it looks like a dive with the wing tilting downward as the plane moves ahead.

            One might think this is very dangerous, but in fact a standard maneuver by airplane pilots in order to regain control of their aircraft is to aim the plane downward a little to pick up speed.  This is exactly what occurs in economics in some situation.  By picking up speed, the economy rebounds and moves out of danger.

            This may be called an economic recovery pattern in this analysis.  It is a positive change that bodes well for the future.

 

STEPPING OUT OF LIFE – CATASTROPHE LOOMING OR QUICK DEATH

 

            This is the opposite of the pattern above.  On a hair mineral test of a body, it looks like steps going up to the right.  From the side view of an airplane, this looks like a stall.  Anyone familiar with airplanes knows that a stall is the worst possible situation.  This is important for economics, as well, and could be called a stall.

            In the bodies, this pattern indicates a runaway imbalance that usually results in a person’s quick death from a heart attack or stroke.  We all know of people who have suffered this way.

            In the economic sphere, it is the same.  The pattern indicates an unsustainable trend or activity that can only end in a crash, and usually a severe one.

 

COMING ALIVE PATTERN

 

            A very positive pattern seen in the bodies and in societies and nations is called coming alive.  This pattern is indicated by a rise in one, two, three or four of the macrominerals – calcium, magnesium, sodium and potassium.  The other rule is that the macrominerals that do not rise must remain the same.  They must not decrease.

            As with all these patterns, they can be more or less intense or powerful.  With the coming alive pattern, the more macrominerals that rise (1, 2, 3 or 4), and the greater the rise or increase, the more powerful and significant the pattern.

 

(there are many more that will be added here)

 

VII. CORRECTION

 

There are five main areas of correction:

 

1. The constitution and the laws.

2. Education.

3. Bringing in new industries.

4. The fixes.

5. The emergency procedures.

 

            Let us discuss each of these areas.

 

1. CORRECTING THE CONSTITUTION AND THE LAWS (fixing the Na/K)

 

            This is the most important area to correct because until this is done, the economy will not operate correctly.  It can be the easiest area to correct, or it may be difficult to impossible to correct in an older society. 

Correction of the laws is easy if one is dealing with a new nation or society.  Here one does not have to deal with the inertia and special interests of an entrenched economy.

Correction is also much easier when the leaders of the nation are open to having a vibrant economy.  This is not always the case if the leaders are most interested in control, for example, or follow a socialist or communist ideological path.

 

Difficulties.  Changing the laws and constitution are very difficult, however, if the society or nation is older.  It is also much harder if the nation or society has established traditions, regulations, and ingrained behavior patterns that are dysfunctional.

For example, most societies on earth have totally unfair laws governing the financial sector that allow this sector to accumulate vast sums of money at the expense of their depositors and investors.  Changing these laws will mean the end of this type of predatory financial sector. 

 

The problems of correcting the laws.  The main problems are:

1. Fear.  Often, the leaders will not go along with correction, even if they believe in it, because they fear the repercussions of certain powerful and wealthy groups who benefit from the unfair laws.  For example, the bankers and money brokers will fight hard against destroying their niche.

2. Dislocation.  Another problem is that a major change in the laws of a nation or society will cause dislocation in the economy.  For example, financial centers such as New York City and London, England might collapse, financially.  Many people might be forced to move out of these areas and into regions with more jobs, for example.

Also, a change will cause unemployment and poverty for some people via a ripple effect.  For example, the Metropolitan Opera Company and even some libraries and museums might have to close for lack of financial support.  Subtle effects of a correction of the laws are hard to predict and can occur quite distant from the affected sector.

Unintended consequences.  In economics, these changes are called unintended consequences.  They are system effects as the economy rebalances.  A better term to describe them is healing reactions or purification reactions.  This is a better description of what occurs.

For example, there might not be enough homes in another city to accommodate the people who will move there as a result of the change in the laws.  Perhaps there might not be enough revenue to support a lot of city services in New York, for example, so the city could undergo immense changes for the worse.

If one is lucky, and the changes are made properly, the purification reactions are fairly mild.  However, one must expect some drastic changes if, for example, the financial industry as we know it were to end in America and elsewhere.

Healing crises.  The situation could even get worse if a natural disaster, for example, came at a time when services had been cut back and the new economy had not yet gotten going very well.  At the same time, criminal elements in the society might sabotage the effort, sending out a mob of people to loot and riot at the same time.

In such cases, fear sweeps through the population and faith in the government can waiver.  Economists and government leaders must be ready for such occurrences.

3. Deeper psychological and other disturbances.  A consequence of the above is that some people will suffer psychological distress that could affect the economy.  In the financial sector example, many people will need to learn new ways of investing their money all over the nation and the world.  Some will think that their financial future and retirement plans have been destroyed.  Some might even commit suicide as a result.

This is another level of disturbance or purification reaction.  We could group it with the paragraphs above, or it can remain as a separate problem of changing the laws.

            How to proceed.  As a result of the problems above, legal changes of this sort must be done properly.  Ways must be found to help people find other work, and to otherwise adjust their lives to the new economic reality.

Such changes also require extremely far-sighted, courageous, tenacious and wise leaders who can explain the situation to the people (see next section), and who can handle the pressures to slow down or stop the corrective process.

 

2. EDUCATION (teaching and explaining to all the people the new lifestyle)

 

              An enormous task.  Education is a massive undertaking that needs to be done well, on all levels, in all types of media.  It will cost a lot of money and require a lot of effort to do well.  It must be targeted to all groups in society from the wealthiest to the poverty-stricken, the children to the retirees.

Coordinated.  Education also must be coordinated perfectly with the correction of the laws explained above in order to work properly.  This is also not easy.  However, if it is not well-coordinated with the law changes, either the laws or the education will not make sense, or conflicts will arise that will anger and confuse people needlessly.

Easier in some ways.  Education is easier than changing the laws because it does not involve legislation and resisting special interest groups who are threatened by the new laws.  Of itself, it also does not cause dislocation, unemployment and other economic problems. 

Radical change needed.  The current public education system in most nations is a hotbed of communist ideas, false and very sick so-called liberal and progressive moral ideas, and more.  The schools are also not safe, especially for girls. 

Schooling must be changed.  Most likely, public schooling will be replaced by home schooling, a far better alternative in the computer age.  It is better for children and for mothers, for whom working at jobs with men is simply not safe.  Mothers will be paid by the government to school their own children.  There will be plenty of money to do this because the waste of money called public education will stop.

Changes in education will run into problems, such as:

 

1. Academia.  There will be resistance from academia and other intellectual groups in society who do not agree with the new ideas.

2. Textbooks. Books used in schools and universities will still teach the old ways, as will the professors who learned the old ways.  This will need to be corrected.

3. Resistance.  Some of the new teaching will be disturbing to those who benefit from the old unfair laws and improper policies.  They will no doubt spread lies and try to sabotage the educational effort.

 

            Leadership.  Education requires great leadership, compassion, ability to express ideas simply and clearly, and a desire to inform and educate without confusing the people.  These qualities are rare, at best.

 

            How to proceed.  This, and all the areas of correction, require specialists who are willing to experiment, not afraid to use all the media, and not afraid to use the procedures below to achieve their ends, if needed.

 

3. BRINGING IN NEW INDUSTRIES (improving the diet)

 

            This is very important in some economies that are thin and unbalanced, or simply unhealthy.  It sounds easy, but at times, it is very difficult.  The problems are:

 

1. The leaders will need to go along with the plan.  This is not always simple.  Some may be invested or have many friends in the old industries.  Others may simply be afraid of making changes.  Other hidden consequences may also be revealed when discussion arises about bringing in new industries.  For example, laws may need to be updated that will expose unfair practices and cheating among the existing industries.

2.  The population may lack trained workers to work in the new jobs that the new industries require.  For example, it you bring in electronics companies, these require special skilled workers such as engineers.  It will take time to train these workers.

3. There will be resistance from those who benefit from the status quo.  For example, if new industries come in, they will compete for space and workers with existing industries, who will lose some workers and will not be happy.  Also, the older industries may have to pay their workers much more money to keep them, which will raise the prices of some goods and services.

            All of this puts pressure on the leaders to stop the process and continue with the status quo, and this must be opposed at every turn.

 

4. FIXES (the vitamins and procedures of nutritional balancing)

 

            Economists have many fixes that they use to move an economy in one direction or another.  They are mainly stimulants, sedatives, pain killers, anti-depressants, props, and cosmetic adjustments to make things look better.  They are like giving medical drugs or random vitamins to a patient to relieve symptoms.

Most of these are to be avoided. These are all toxic and most don’t work well.  They are symptomatic remedies that end up making things worse.  They fix one problem, but often create two or three more problems later that are as bad or worse.

However, some fixes can be used and are used, at times, when correcting an economy.  This is the same as remedies that are used in nutritional balancing, at times, usually for a short period to handle a particular type of problem.  The tricks are to know which remedy or remedies to use, use them judiciously, and discontinue them as soon as possible.

For example, if a law change is going to cause massive unemployment or other dislocation, a remedy may be added for a while to soothe the inflammation, anger, confusion and upset caused by the law change.  To return to our example of the financial laws, one might want to begin a government job training program to re-education thousands of workers to prepare them for new jobs in other industries.

 

5. THE PROCEDURES (same as the procedures in nutritional balancing)

 

These are emergency measures that may be needed in an economy to move things along and make sure that the process of correction doest not stall.

For example, let us say some members of the financial industry do not agree with the new laws and threaten to blow up skyscrapers if the laws go into effect.  This is not uncommon when profound law changes occur in a society.

In this case, the government must take immediate emergency action against these criminals – and that is what they are.  They must shut them down, put them all in jail, and end the threat so that the correction process does not stall.  If this is not done quickly and forcefully, usually an economy cannot be fixed if it is old and has entrenched industries that need to change and do not want to change.

This is like giving a person a coffee enema, rubbing the feet, or putting a person in a sauna.  These are “unnatural” and “stressful” procedures.  However, at times they are absolutely needed or a person will not get well.

 

 

 

 

CALCULATING THE OXIDATION RATE

 

            To use this system of analysis, the first step is to gather the proper information.  Below is a simplified list of the most important information to gather about a society or nation.

 

INFORMATION TO GATHER

 

The unemployment rate

Total population

If possible, men, women and children population

Number of government employees

Number of retirees and other groups, prison population, mentally ill, etc.

The GDP or GNP or a similar measure

 

            The next step is to come up with the right employment numbers.  To do so, you need to take the full population of the state or society and start subtracting the groups that are either unemployed or who don’t count as employed, even though they hold jobs.  These are:

 

children

retirees

criminals

all public bureaucrats and employees of all kind

 

            When you have subtracted these, you will be left with the number of employed for this analysis.  Then compare this with the total population to arrive at the employment percentage.  In many nations and societies, you will be shocked at how few are employed, by this measure.

 

            The next step is to use the chart below to calculate the oxidation ratio:

 

To be continued …

 

PUSHING DOWN IN AN ECONOMY

 

            Definition.  Pushing down in an economy occurs when people focus their energy on their businesses, occupations, trade and other economic activities.

              It is an important idea because, at times, there is not enough focus on work, trade and other economic matters.  This tends to slow down the economy.

            Pushing down in an economy also has to do with connecting the head of the economy with the feet.  The head of an economy are the entrepreneurs, leaders, and often the wealthier people.  The feet of an economy are the poor and dependent class of people such as the elderly, the sick, widows, orphans and the disabled.

            In healthy free economies, entrepreneurs should work closely with the poor and disabled.  This makes for a much happier society.  The way to connect these two economic groups are:

1. Don’t isolate the elderly, poor and disabled in ghettos, neighborhoods or barrios.  Many societies do this using zoning rules and other laws. 

Instead, mix them in with the rest of the population.  This exposes them to the rest of the society.

2. Encourage charity, volunteer programs, formation of thrift and second-hand stores, homeless shelters, free health clinics, pawnshops, job locators, check cashing services, low-cost counseling and legal services, and other businesses that the poor and disabled require.

Analogy with nutritional balancing. In nutritional balancing science, the Pushing Down Exercise is a vital part of the healing process.  It functions in several ways:

1. At the beginning of development, the exercise is critical to “get things off the ground”.  The same can be true in an economy.

3. Downward motion is calming and steadying to a person and to an economy.

4. The pushing down exercise in the body and in an economy actually realigns and balances the entire system.  It may not look like much, but its effect is quite amazing.

5. Without downward motion, fear can gain the upper hand in a body or an economy.  Fear is an enemy of a robust economy, since fear causes people to hoard money, stay home rather than shop or work, and it can cause people to panic and make bad economic decisions.

            Examples.  Ways that people “double down” and focus more on work and other economic activity include working more, taking fewer vacations, thinking more about work and other economic activities, and doing more reading, viewing, studying and talking about their work and other economic-related material.

            Ways that economists can suggest to encourage people to “push down” and focus more on their work are:

1. Establishing a very pro-business “climate” or focus of the nation or society.  This is critical and extremely helpful.

2. The government can hire business professionals to high-profile leadership positions, both to teach the public and to serve as examples to them.

3. Encourage and reward the study of business and economics by the public, and by students at all levels in the education system.

4. Teach business principles and practice to all middle school, high school and college students.

5. Set up internship programs at companies and other locations so young people can learn about business.

6. Offer scholarships to students to study business in college.

7. Encourage authors to produce books, articles and multi-media presentations supportive of business, sponsor essay contests among students to help them write and learn about business, and more.

8. Establish governmental and private groups to promote and support business activity.  The nation with the most of these is the United States:

-  Each city has a Chamber of Commerce, which lobbies on behalf of business people.

 - The Small Business Administration is a government agency that offers inexpensive loans for some businesses.

- http://www.Meetup.com and other website connect business people with each other.

- The Better Business Bureau is a private group that rates businesses.

- The Small Business Association is a private group that offers many benefits for businesses such as insurance, legal help, and more.

 - SCORE is a volunteer group made up of retired businessmen and women.  They advise new businesses at no charge.

- Others are the National Federation Of Independent Businesses, Startup Nation, Entrepreneur’s Organization, and BNI.  Some of these are international.  In addition, America has many business organizations for specific industries or occupations and for specific groups such as women or veterans.

            Carrying out these activities is often very important to launch an economy and to give it new life.

 

THE TWIST

 

            Definition.  This is a maneuver to dislodge stuck parts of the economy.  It is especially helpful for some older economies or those that are stuck in a rut.

              The way it is done is for an economic consultant to review how long all aspects of doing business have been in place in a company or even a government, and to suggest reviewing these methods and policies.

            Analogy with nutritional balancing.  This maneuver is the same as the Spinal Twist Exercises that are used with human beings to realign and loosen the spinal column.

Examples.  Many times, especially in older economies, people become accustomed to certain ways to do business.  For example, for years they have shipped their goods to another city via truck.  This becomes their habit and they just continue the practice, even if it is no longer efficient, inexpensive or practical.

Businesses and governments can be stuck in a rut in a hundred other ways, from the accounting systems they use, to their hiring policies, their telephone systems, and much more.

 

FORCED DETOXIFICATION

 

            Definition.  This is the use of certain maneuvers to clear out toxic businesses or toxic elements in a society quickly to help restore the economy.

Ways to do this are:

1. Pass a law that forbids the toxic business or activity.

2. Increase enforcement of existing laws.

3. Increase the punishment for certain activities to discourage them.

4. Institute an educational campaign or program to warn people away from an activity.

5. Declare martial law to suspend the usual freedoms of the people, and then send in the police or military to handle the problem. 

            Analogy with nutritional balancing.

One analogy is the coffee enema.  This is a forced cleansing of the colon, liver and other organs of a body to help restore health.

            Examples.  Recently, some states in the United States passed laws forbidding the use of cell phones while driving a car by teenagers or by anyone, in an effort to reduce accidents.  Using a cell phone while driving was perceived as a “toxic activity” that needed to be stopped.

              The new president of the United States has vowed to actually enforce the American immigration laws to stop illegal immigration into the nation.

            In the event of rioting, governments often institute curfews and other measures to get people off the streets at night to prevent riots.

 

 

VIII. OTHER VITAL CONCEPTS

 

I. TAXES

 

WHAT ARE TAXES?

 

            Definition.  Taxes are any confiscating of money from the economy by any of the governments (national, state,county and local governments) of a nation or society.  Taxes are brakes on the economy.

              Taxes are always taken by force.  This is very important point about taxes.  It means that there is a lot of opportunity for abuse in a society through the taxing laws and tax system.

 

TAXES ALWAYS SLOW THE ECONOMY

 

To levy taxes literally means to put on as a yolk around the person’s neck.  That is what taxes are, in fact.  They are a yolk around people’s necks.

If one does not pay one’s taxes, one usually goes to jail.  In times past, many people lived in dungeons for this reason.  Things are little better today, but not much in many nations of the world.

 

WHY TAXES?

 

            In the economic balancing model of how an economy should work, taxes exist for only one reason - to pay for the government.  In this economic model, the government does not own businesses, so it has no income.  The reason for not allowing the government to own businesses are is they are usually full of waste, fraud and abuse.

            In other economic systems, taxes serve other purposes.  For example, in socialist economies, taxes are used to:

1. Redistribute income from wealthy people to poor people.

2. To redistribute money from the general population to special interest groups that the government likes or feels are more worthy of the money. 

Often, this is just corruption.  Anyone who gives a political donation to the government may receive a kickback in the form of a tax break of some kind.

3. To channel consumption, production and other economic behavior by rewarding some of it and punishing other behavior by taxing it.  For example, in many nations, cigarettes and alcohol are taxed to discourage people from using them.

4. For general control and harassment of the people, especially in communist and socialist nations.

            For example, during the Obama administration in the United States, billions of dollars of tax money that was supposed to be used for infrastructure was funneled to donors and friends of the administration.  In addition, a scandal arose because the tax system itself was being used for harassment of those with views different from the government.  Tea Party members and conservatives were audited and sent threatening “demand” letters at a much greater rate than everyone else.

 

TYPES OF TAXES

 

            When analyzing any economy, one of the first areas to study is their tax system.  The reason is that most taxes are damaging to an economy.  If you fix the taxes, often the rest of the economy can recover.

            Types of taxes:

- Taxes on income such as wages, salary or capital gains (investment income).  Income taxes may apply to individuals, as well as to entities such as corporations and trusts.

- Taxes on property.  Many nations tax real estate, homes, and sometimes personal items inside the home or office.

- Taxes on consumption.  These are taxes on the sale or trading of goods and services, such as sales taxes.

- Taxes on international trade of good and services.  These are taxes on imported or exported goods.  Another name for them is tariffs.

- Taxes on selected items produced and sold within a nation or society.  Examples are so-called sin taxes – on alcohol, cigarettes, gambling or recreational drugs.  Another example is luxury taxes.  These are taxes on certain luxury items such as private airplanes, private yachts, or very expensive homes.  Another is a gasoline tax.  These are also called excise taxes.  They are either a percentage added to the sale price of an item, or a fixed amount of money added to an item.

- Taxes on value added.  The VAT or value added tax is a tax on every step in the manufacture of a product.  It is extremely complex, hard to understand and non-transparent.

 - Taxes related to these are those on entitites themselves.  They include the poll tax (an older tax on each person once a year), and user fees required to maintain a corporation, trust, or other entity.

- Other.  Some nations have situation taxes.  The most common one is the death tax or inheritance tax.  Upon your death, you owe the government a certain percentage of all the wealth you had at the time of your death. 

At times, a family is forced to sell their family farm or family business to pay this punishing tax.  This is especially true if a family leader dies unexpectedly before putting his affairs in order to minimize or evade this tax.  Saavy people can get around this tax by setting up trusts, for example, so they don’t own anything at the time of their death.

 

User fees.  These are not technically taxes, but they are very similar.  They include car registration fees, filing fees to maintain a corporation, parking fees to park your car, and others.

 

            Levels of taxes.  Every level of government requires money.  Therefore, in any nation or society, there will be taxes at the local, county, state or province, and national level.

              For this reason, most nations and societies have hundreds of different tax codes and laws that people must obey.

 

The least damaging taxes.  In order to do the least damage to an economy, taxes should be:

1. Easy and inexpensive to collect.  For example, a sales tax is easy to collect while a person is buying an item.  It is a simple percentage added to the bill.

In contrast, an income tax is very difficult to collect.  It requires extensive record-keeping, complex formulas to calculate it, and then is an honor system because the government does not have the resources to check every single tax return.

2. Hard to cheat on.  A sales tax is difficult to cheat on because it is so obvious.  The more complex taxes such as income and others are much easier to cheat on.

3. As non-invasive as possible.  This means they should not involve a need to spy on people or cause other hardships.

4. Fair.  Taxes should affect everyone in society so that everyone pays at least a little tax.  This makes sure that everyone knows the cost of government and participates in supporting it.

Some people believe that “fair” means that if a person has more money, he or she should pay more tax.  There is a debate as to how much more the rich people should pay.

One can argue that wealthy people have benefited more from society, so they should pay more.  Others, however, say that a wealthy person has contributed more to society, for which reason he or she is more wealthy.  Therefore, they should not pay more.

Others say that wealthy people use more government services such as airports, so they should pay more.  In America today, the wealthiest 1% of the people pay 40% of the total tax collected.  Some say this is too much, while others say it is not enough.

5. Should not be regressive or graduated.  Regressive means that the poor pay the most.  Graduated means that the wealthy pay the most.

6. Transparent.  This means that people can see clearly how much they are paying in taxes.  For example, a sales tax is very transparent.  It is an amount added on to a purchase.  A corporate income tax or value added tax is not transparent.  That is, when you buy a car, for example, it is impossible to know exactly how much of the price went to pay the corporate income tax.

7. Voluntary.  This does not mean that one can skip the tax, if one wishes.  It means, however, that one can have some control over how much one pays.  For example, if one does not want to pay a lot of sales tax, one can perhaps buy fewer or less expensive items.  If one wants to pay less income tax, one can work less, but only to a degree since some income is needed to live.

8. Easy to understand.  Some taxes, such as income tax, have thousands of pages of rules that almost no one understands.  In contrast, a sales tax is a one-page law listing the items to be taxed and the percentage of the total sale to add as the tax.

9. Do not punish wealth creation.  Wealth creation is the purpose of an economy.  Income taxes (individual and corporate) directly punish wealth creation.  This makes them among the worst possible types of taxes!

10. Do not punish home ownership.  Owning a home is very nice for the comfort, safety and security of the people.  Property taxes punish home ownership and often force people to sell their home just to pay the property taxes.

11. Do not punish trade.  Trade between nations and societies is a very good thing to prevent strife and war.  In fact, it is the best way to prevent war.  Punishing trade, especially between nations, often leads to war.  For this reason, import and export taxes (tariffs) are not good taxes.

12. What is left are user fees and consumption taxes.  These are the best types of taxes.  They are also very transparent and quite easy to collect, and difficult to cheat on.

 

Economic balancing tax principles. 

1. All taxes are a drag or brake on the economy and slow it down.

2. Most taxes are unnecessary if the government is small and run efficiently.

3. The worst taxes are graduated income taxes.  The reason is they require tremendous record-keeping, they destroy privacy, they invite government snooping and interference in people’s lives, and they are easy to cheat on.

            4. The best taxes are sales taxes.  This tax is easy to understand, easy to collect, hard to cheat on, does not require extensive record-keeping (merchants usually record sales, anyway), and is very transparent.

              Sales taxes can easily be piggybacked upon each other for ease of collection and payment.  For example, an item might carry a 10% sales tax.  Of this total amount, 3% may be for the city government, 2% for the county government, 2.5% is for the state or provincial government, and another 2.5% is for the national government.

            In the economic balancing model of economic analysis, most, if not all taxes will be sales taxes.

 

            Figuring out how bad the tax system of a nation or society is.  In the economic balancing model, a very important aspect is to assess the tax system and structure and give it a rating.

              The simplest way to do this is to ask the governments how they pay for themselves.  Then figure out how much money each one takes from the economy, and you can figure out the percentage that comes from the different kinds of taxes.

            For example, the national government might need $1 trillion dollars a year to operate.  Of that, they collect half as income taxes, 1/8 as user fees, 1/10 as gambling and alcohol taxes and some in another way.  It is easy to calculate the actual amount they collect from each type of tax. 

Then one just adds up the totals of all the governments – local, state and national – to figure out how this nation or society pays for its governments.  The more that comes from sales taxes, the higher the rating.  The less that comes from sales taxes, the lower the rating.

 

MORE ON TAXATION

 

            Taxes are a focus of the economic balancing model of how an economy should function.  Almost all, if not all nations on earth use taxes to reward their friends and punish their enemies, reward and punish behaviors of their people, redistribute wealth and perhaps for other purposes, as well, that are not ideal, in our view.

            All of this harms their economies to some degree.  Europe is often the worst, with their high income taxes and the VAT tax, one of the very worst.  America is a little better, with lower income taxes and no VAT.  Asian nations are also better, and most do not have a VAT.  The large number of nations with bad tax systems explains a lot of the poverty on earth.

 

FAIR DEALING

 

            Definition.  This is a critical concept in any economy.  It means giving people fair value for their money.  It involves how much profit one makes on one’s products or services.  It could involve how much time one spends with a customer or helping a customer.

            Fair dealing also has to do with honesty about one’s product or service and perhaps other qualities of one’s interaction with a client or customer.

Another aspect of fair dealing is full disclosure about the ingredients in a food product, or the contents of a manufactured item.

 

CHEATING

 

Cheating is one of the most important concepts in any economy. All economies have some cheating.  The more of it that goes on, the worse the economy, in every case.  It is a potent toxin, in other words, for any economy.

 

            Definition.  Cheating is not dealing fairly.  (see Fair Dealing just above).  There are numerous forms of cheating in an economy.  Here are some of the major ones:

 

1. Lying about or misrepresenting one’s product or service in any way.

2. Intentionally confusing and usually deceiving people by writing and enacting long, confusing laws and regulations.

3. Violating the laws of the nation in regard to commerce, manufacturing, distribution, sales, marketing or some other aspect of business.

4. Going along with unjust and/or unfair laws because you receive personal benefit.  Ideally, a participant in an economy should report such laws or “loopholes”, as they are sometimes called, and have them changed.

5. Fraud, which means fakery in any aspect of a transaction involving any product or service.

6. Using your size, power or numbers to gain an unfair advantage of your competitors.  For example, an unfair use of size is to force manufacturers, distributors, sales people or others to do things your way or you will avoid them or hurt them in some way.

Economy of scale.  This means buying a large quantity of an item because you are a large retailers, for example.  This is a legitimate way to reduce your cost of product and is not an unfair use of size, numbers or power.

7. Stealing.  This is enriching yourself by secretly and without compensation using the money or other goods that belong to others.  For example, Wall Street firms and banks use their investor’s or depositor’s money as collateral for buying securities, to issue loans, to obtain loans, and other purposes.  They do this without compensating the investors or depositors for this use of their funds.

This form of cheating is described under the heading of Wall Street Cheating in this article.  It is very different from the legitimate use of a depositor’s funds at a bank to make loans to others. 

8.  Occupational licenses are a form of cheating.  They artificially limit competition to benefit only the licensees.

9. Unions are a form of cheating.  They artificially limit competition and impose other conditions and rules upon employers to benefit only their members.

10. Thought control.  This goes beyond lying.  For example, in America and perhaps other nations, the only people allowed to speak or write the words diagnose, prescribe, treat or cure are licensed physicians.  In other words, freedom of speech and of the press have been limited to protect one small group of people.

This is censorship and thought control, and is always cheating.  Few people know about this horror, and the doctors like it that way.

11. Bodily or physical harm to the competition, lawmakers or others.  This includes murder, rape, beatings, arson, bombings and sabotage. 

11. Engaging in cronyism, kickbacks, blackmail and other forms of corruption.

12. Forcing the population to support or even patronize certain businesses, but not others.  Governments do this all the time with subsidies, tax breaks, heavy taxation of those they do not like, public service messages, and more.

For example, government schools are tax-payer supported, while home schooling and most private schooling is not.  Drug medicine hospitals are often taxpayer-supported, while natural healing office and clinics are not publically funded.  Welfare programs such as Medicare (program for the elderly) in the United States reimburse for drug medicine, but will not reimburse for nutritional balancing or hair mineral testing.

 

            Other examples of cheating.  These include knowingly producing bad quality or defective products, false advertising or labeling, bad warranty service or customer service, cheating on invoicing or billing, padding the bill, exceeding estimates, and dishonest return policies.

            Some kinds of cheating affect an entire industry.  For example, all doctors are required to recommend vaccines by their licensing boards, although it is a dangerous, stupid and unnecessary practice.  This is a special type of cheating the public out of the truth. 

Another example of this is the use of superphosphate or N-P-K fertilizers.  These increase crop yields but decrease the nutritional value of most food today throughout the world.  As a result, all people are cheated out of nutrients their bodies require.

Other words for cheating in any economy are lying, stealing, deceiving, misinforming, hoodwinking, seducing, robbing, raping, ripping off, using, taking unfair advantage, false advertising, fraudulence (the legal term for cheating), and others. 

           

Preventing cheating.  This is so important in an economy that it deserves a separate article.  For now, let us just mention a few of the best methods of preventing cheating.  They are:

1. Teach good moral values to the people. This is absolutely necessary to limit corruption, cronyism, and other types of cheating in economies.  It is the only way to limit lying, stealing, murdering, raping, and other crimes in the economy, as well as in other areas of the society. 

2. Maintain free and open competition.  This is a critical task for an economy, and often not easy.  There will always be those who favor limiting the marketplace “to protect people” from products and services they don’t believe in.

Free competition is a major advantage of free market economies.  The lack of competition in command economies and even socialist economies means that cheating is impossible to limit in these types of economies.

3. Insist upon a gold standard for the money and no government deficits.  This would do much to limit government cheating.

4. Insist upon law and order in society.

5. No occupational licenses or special arrangements such as trade unions.  Licenses and trade unionism are themselves cheating because they prevent competition and force people to patronize only certain services or people.  A deeper problem with licenses and trade unions is they actually encourage cheating by protecting certain people.

Occupational licensing needs to be eliminated.  It does not protect the public, as is claimed for it.  For example, modern medical care is at best the #3 killer of people today.  Some say it is the #1 killer of people in the Western world. 

This is the result of licensing, and not a need for more licensing, as some say.  Licensing protects sloppy, outdated and toxic medical practices, just as unions protect old, outdated and inefficient ways of running businesses such as the postal service of most nations on earth.

Unions would disappear overnight if the laws were changed making it illegal for anyone to force a company to bargain collectively.  There is no need for the National Labor Relations Board in every nation, for example.

6. Transparency, clarity and simplicity in all the laws.  Simple methods to assure this including forcing legislators to keep all laws to three typed pages or less.  Also, all laws must be written in plain language that everyone can understand.

For example, the Affordable Care Act of 2010 (Obamacare) in the United States contains more than 2000 pages of very confusing legalistic language.  It would take a year or more to read it and understand it.  This is a type of cheating!

7. Open meetings of all city councils, county, state and national bodies.  Ideally, broadcast these meetings by radio or television to all the people.  People should be able to attend these meetings and interject questions at any time.  It slows the process but prevents a lot of cheating.

8. No reserving the right to use certain words or phrases only to a certain group of practitioners or businesses. 

9. Require full disclosure labeling of all items of food and other things in which the ingredients matter.  For example, at the current time throughout the world, a few large food and chemical companies are spending millions of dollars fighting against truthful labeling of genetically-modified food (GMO food).  This is cheating.

 

Punishment for cheating.  Cheating should be punished in an economy with stiff fines or jail sentences for all involved.  Companies and their boards of directors should not be exempt from prosecution because they work for a corporation, for example. 

 

TYRANNY IN AN ECONOMY

 

            Definition.  The word tyranny means control without regard for the feelings or situation of others.  Tyranny in an economy is basically the same as a command economy, or a socialist, communist, or dictatorial economy.

              Examples.  A government might mandate that all producers of autos must use a specific design, although it is not needed or helpful.  They might force all doctors to be licensed, although this is not helpful.  There are many examples of tyranny in economies, even free market economies.

            Taxes are a mild form of tyranny.  Subsidies, welfare programs and other government interference in the economy tend to all be forms of tyranny.

            As a principle, tyranny always diminishes the vibrancy of an economy.  However, some government interference such as prohibiting drug use and prostitution, can be beneficial for an economy.

 

ENTREPRENEURS

 

            Definition.  These are people who start businesses.  They usually start very small, in a garage or their bedroom, perhaps, and they begin by doing all the jobs themselves.  As they grow, they hire others to do some of the jobs so they can concentrate on the other ones.  This is often how large corporations begin their life.

Analogy with nutritional balancing.  Living bodies start out as one cell, which multiplies.  Soon, division of labor begins, in which certain cells do one job while other cells perform other tasks.  It is completely analogous to entrepreneurship.

Entrepreneurship is one of the most important qualities in any economy.  Smart economies encourage start-ups and entrepreneurs.  This is quality of America, for example.  Stupid economies do not foster entrepreneurship.  They have many fewer businesses, as a result.

 

LOVE IN AN ECONOMY

 

Definition. It is feelings of goodness, sharing and helpfulness.  It has wonderful effects upon the stability, vibrancy and overall health of an economy – just as it does for individuals.

The degree of love in an economy has a lot to do with the moral values of the people in the nation or society.  It also has to do with the constitution and the laws of the nation or society. 

Its opposite.  Some economies are plagued by angry and negative individuals, companies and employees.  They tend to “poison the air” with their complaints, negativity, and even sabotage and treachery.

Analogy with nutritional balancing.  Healthy cells and healthy human beings display these same qualities.

Examples.  A person who is so happy to do business with a particular merchant that he or she recommends them to all their friends, writes a positive review about them on a website, and even visits their store or location just to say hi.  The person might even buy items they do not need, just to help the merchant or because they enjoy the shopping experience.

Some businesses and companies treat the employees and their customers with total honor and respect, doing all they can to help them succeed and do their best.  They “go the extra mile” to give excellent service with a smile.

Some employees also love helping and serving others.  They, too, go out of their way to assist their customers and often their employer, as well.

Others in an economy can also behave in similar ways, spreading good cheer, helpful information and recommendations, and promoting their favorite businesses.  All of this has an uplifting and very positive effect upon an economy. 

 

EFFICIENCY

 

Definition.  Efficiency is the degree to which an economy carries out its activities in the least costly, safest, fastest, and most effective way.  Efficiency is vital for any economy, especially in a world in which many economies compete for labor, raw materials and other economic inputs.

Efficiency can be very complex because it can depend upon many subtle factors.  For example, it might seem strange to manufacture a product thousands of miles away from where it will be sold.  However, factors might come into play include:

- the basic stability of the government of the nation.

- type and rate of taxation in the area.

- the laws of the nation in regards to private property rights, right to work versus unions, litigation, consumer product safety and other areas.

- the availability of inexpensive labor and inexpensive electricity to run the factory.

- the educational and health level of the working class of people.

- the safety of the area from terrorism and natural disasters.

- the availability of airports or shipping terminals.

Analogy with nutritional balancing.  Comfort is a good word to describe a physical analogy for efficiency.  Pain in the body is the same as inefficiency in an economy.

Examples.  Efficiency is a consideration in every aspect of the economy and in every business.

 

RIGIDITY AND MISALIGNMENTS

 

Economic definition.  Rigidity means doing business in the same old ways as in the past without checking to make sure it is still the most efficient way to do things.

Misalignments occur when parts of an economy don’t “fit” correctly with other sectors or part of the economy.

These are often qualities of older economies or “lazy” economies that are stuck in their patterns or ways of doing things and don’t want to change.

Analogy with nutritional balancing.  This is analogous to chiropractic problems.

Examples.  An example of rigidity is if a company has shipped their goods by truck for 50 years and do not check for more efficient ways to ship their products.  They may know the truckers and the schedules, sod the easy thing to do is just to continue the same way.

Perhaps, however, a new rail line or air route has recently been established.  It would be better for profits and efficiency, but the company directors don’t bother checking this alternative.

A misalignment might be if a large industry in a nation depends upon a particular raw material supply that is no longer available in that nation.  The result is that the industry becomes much less efficient because they must import their raw material at a much higher cost than if it were locally available.

 

ECONOMIC REMEDIES

 

            Definition.  As the word is used in this article, economic remedies are measures that are applied to fix a problem in an economy that always unbalance the overall economy, even if they correct a problem.  In other words, by definition a remedy is not a systematic correction of an economy, but rather a band-aid or symptomatic and superficial approach to fixing problems.

            Examples.  If a lot of people in a nation or society are consuming alcohol, the government may correct the problem by establishing or  increasing the tax on alcoholic beverages.  Establishing a new tax is the most common “fix” that is applied to economies that are moving in a direction of which the government does not approve. 

The effect of a tax is to reduce economic activity in that sector of the economy.  The problem with this method of fixing the economy is that it may not work because it does not address underlying issues. 

For example, people may be drinking more alcohol because they are very unhappy.  Taxing alcohol does not increase their happiness, so it does not address the real problem.  It just makes it more costly to drink alcohol, which makes people more unhappy.

 

GOING VEGAN

 

            Definition.  This occurs when a nation decides not to develop heavy industry.  They rationalize this decision by saying that heavy industry is polluting.  Also, it is a “old”, “industrial revolution” type of industry that is on it way out.  It is not worth the large capital investment and possible environmental damage.

These nations would rather buy their iron, steel, nickel, aluminum and other metals, and perhaps even cement and glass, from other nations.

            Analogy with nutritional balancing.  We call it going vegan because it has a similar effect on the economy as when a person follows a vegan diet.  It is a very deficient situation that shortens the life span and leads to many ailments.

              In the economy, it leads to poverty, inflation and worse problems.  It can even cause a collapse of the economy.  That is how important heavy industry and meat are to an economy and to the body.

Examples.  This problem is common in the nations of South America and Africa, and some of the nations of Europe.

 

TRAVEL

 

Definition.  Travel can include moving from one area to another within one’s own nation or society, as well as visiting outside of one’s own nation or society.

Analogy with nutritional balancing.  One analogy is the movement of the blood, lymph, bile and other fluids around the body.  It is necessary for good health.

Examples. Travel is an important part of some business enterprises such as multi-national companies, import-export businesses, and many others.  Businesses know that, at times, an in-person visit is needed to “close the deal”. 

Businesses set up remote locations for many reasons.  These include to take advantage of the climate, to get abundant and cheap power to run factories, to hire a good labor force, or to serve a growing marketplace for their products or services.

Other types of travel are to attend a school or university, or travel for field study such as in the area of anthropology.  On earth, people sometimes travel to learn a language or study a foreign culture and broaden their overall knowledge of the planet.

Travel is also an excellent pleasure or vacation activity within and between economies.  It exposes people to different locations and different ways of doing things.  They bring home this knowledge and implement better solutions to their own problems and situations, as a result.  This is a major benefit of travel that helps make planet earth a vibrant place.

Travel as entertainment.  People also enjoy travel very much.  They like riding on airplanes, boats, trains and buses, meeting other people, seeing new places, tasting new food and even experiencing new climates.  They also enjoy the hotels, motels, bed and breakfast locations, museums, natural wonders, casinos and so many other places they visit.  An economy must keep the people happy in order to be vibrant.

Travel is often classified as an entertainment business.  However, it ought to be classified as a basic business, which it is in the economic balancing system of economic analysis.

 

WAVES

 

            Definition.  Economies go through ups and downs, or speedups and slowdowns.  There are various reasons for this, ranging from inadequate communication in different parts of the economy to bad laws that cause “business cycles”.  These are often just ways that parasites in the economy can take advantage and use the cycles to make money.

              The best way to avoid these ‘waves’ are to set up the economy properly, using mainly sales taxes to fund the government and prohibiting laws that cause inflation and other destabilizing effects in the economy.

            Entrepreneurs and the ‘waves’.  Those who would start businesses must know that all economies go through ‘waves’.  The entrepreneur must be prepared for these waves or his company will likely be destroyed during one of these ‘waves’.

            A good analogy is that if one wishes to sail the oceans, one must be prepared for the effects of ocean waves.  Otherwise, a wave will capsize your boat and you will be lost.

 

MAINTENANCE

 

Definition.  Maintenance includes everything needed to keep an economy running smoothly and functioning well.  It is a critical concept in the economic balancing conception or analytical method.  Maintenance is considered so important that it is given as much importance as trade in the economy.

Maintenance is essential for an economy because in the physical world, all things tend to age, decay and fall apart.  To overcome this tendency requires maintenance.

Analogy with nutritional balancing.  Maintenance of the body is critical for health.  This is why we sleep and rest, do some exercise and eat well.  Only stupid people do not understand this.  Good parents spend a lot of time teaching it to their children, and families must cultivate it to avoid “burnout” and many other problems.

Sadly, the drug medical profession does not emphasize it nearly enough.  They would rather wait until a crisis occurs and then seek to fix it.  This is stupid, in both economies and in bodies.

Examples.  Examples of maintenance include:

1. All inspections of people, buildings, vehicles and machinery. 

2. Some quality control

3. Parts replacement of worn parts of machines of every kind,

4. Lubrication of all machinery.

5. Adjustment and re-calibration of all machinery.

6. Performance reviews, firing and hiring new workers are also part of maintenance of businesses.

7. Replenishing inventory is a critical part of maintenance.  It includes resupplying raw materials, office supplies, cleaning supplies, building materials, and more.

8. Updating and modernizing.  This must be done to all kinds of equipment, such as computers, manufacturing machines, and farming and office equipment.

9. Building maintenance.  Structures such as office buildings and factory buildings require a tremendous amount of maintenance and are one of the main costs of doing business. 

10. Transportation maintenance.  Vehicles, roads, rail lines, airplanes and all other transportation apparatus also require a lot of maintenance to keep an economy running at peak efficiency.

 

“REMEDY ECONOMICS” VERSUS LIFELONG ECONOMIC SUSTENANCE

 

Definition.  Remedy economics is the usual way economic analysis is applied to a nation or society.  A problem is detected and a remedy is applied to fix or correct the problem.

Lifelong economic sustenance is the method used in economic balancing.  This means periodic reviews of the state of the economy, even when is functioning very well.

Based upon the reviews, suggestions are offered to adjust or modify the economy to keep it running at maximum efficiency and maximum vibrancy.  This is a forever process, not a temporary one.  It is far more preventive, less costly, safer and much more effective than waiting for crises to arise.

Analogy with nutritional balancing. In nutritional balancing, one monitors the body every three to six months with a hair mineral analysis, even if a person has no health problems.  Based upon the results, one adjusts the metabolism of the body to maintain it at the optimum efficiency and health.

With nutritional balancing, one does not wait for diseases or other problems to show up, as is the case with most health care.  Some doctors believe strongly in frequent monitoring, but most do not know how to do it well.

Examples.  Most nations and societies have councils or teams of economic advisors whose job it is to monitor the economy.  However, like the medical and holistic doctors, they usually do not know enough to spot all the danger signs and take corrective action before problems show up.

A goal of economic balancing is to teach economists how to do this simply and reliably.

 

PREVENTION

 

            Definition.  This is related to the section above.  Prevention in an economy means to intervene early and properly in an economy to head off problems before they become large, and ideally to avoid them altogether.  This is often not an easy task.

              Analogy with nutritional balancing.  Prevention should be a major part of health care, but it is not.  The allopathic and even naturopathic professions do not know how to accurately and easily prevent most illness.

In addition, many of their preventive measures such as vaccination, fluoridation of the water, preventive use of cholesterol-lowering and other drugs, and periodic breast x-rays, for example, are not too effective and quite toxic.  They often make people worse, instead of better.

            Examples.  As explained above, most applied economics is done with remedies that often harm the economy.  A goal of economic balancing is to teach a true science of economic prevention.

 

MALICIOUSNESS IN AN ECONOMY

 

            Definition.  Maliciousness in an economy means deliberate acts of the government, usually, or perhaps others, to damage or even destroy the economy.  We call it a potent toxin in an economy.  Any economy that has a lot of it will be in serious trouble, often for years.

              Analogy with nutritional balancing.  Although few people want to discuss it, planet earth is plagued by malicious attempts to harm the health of the bodies of all people.  These include pollution with toxic chemicals and toxic metals intentionally added to our soil and products.  These include fluoride and chlorine added to the water, vaccination, and overuse of medical drugs.

Another malicious act is the use of superphosphate fertilizers to damage the food.  Another malicious act is suppressing valid information about the importance of food, diet and nutritional supplements for optimum health.  Another is growing man-made ionizing radiation in the environment.  Another is the proliferation of electromagnetic toxins, mainly coming from cell phones, computers and television sets.

            Examples of maliciousness in the economy.  These are many.  Some are ideological in nature, such as suppressing free markets and laissez faire business through regulation as part of Marxist, communist and socialist dogma.

            Others are simple selfishness and cheating in economies for personal gain.

            A third type is personal vendettas directed against certain companies or people.  One might use the apparatus of government to impede, fine, stifle or shut down a rival, for example.

            Many economies have maliciousness built into their nation’s constitutions in the form of bad laws that favor the rich, or some other group, or just laws that are stupid.

 

VIBRANCY OF AN ECONOMY

 

Definition.  Vibrancy is a positive quality of an economy that is a combination of how many new businesses are formed, and how rapid is the pace of money exchange.

Analogy with nutritional balancing.  This is similar to the rate of protein synthesis in the body.  It is also similar to the oxidation rate.

Examples.  A vibrant economy creates a lot of new businesses.  They do not all succeed, but that does not stop people from trying again and again to establish businesses of their own.

Vibrant economies also move along at a rapid pace.  This means they change and develop easily.  They incorporate new technology easily and adapt to changing conditions easily, as well.

 

OLDER AND YOUNGER ECONOMIES

 

            Definition.  Older economies are those that have been in existence longer, in most cases.  As a result, they have certain well-established businesses, industries, infrastructure or other factors.

              As a rule, these economies recover more slowly than younger economies – those that have been in existence a shorter time.  There is more inertia to overcome in the older economies and change is usually more upsetting to the people involved.

            Analogy with nutritional balancing.  This is identical to making changes in an older person versus a younger one.

              Examples.  Older economies today include those of Europe and Asia.  Newer economies are those of the United States and China.

 

INCENTIVES

 

            Definition.  Incentives are ways to get people to participate in the economy and/or ways to produce desired economic behavior.

Analogy with NB: condiments or spices.

              Examples: All economies use taxes (bitter flavors), advertising (salt), subsidies (sugars), or outright force of law (poisons) to steer people toward or away from certain economic behaviors.

TRADE WITH OTHER ECONOMIES

 

            Definition.  Trade is the extension across state, national, or societal boundaries of usual economic transactions.  These can involve the transfer of any goods and services, in return for cash, electronic currency, or for barter

            Analogy with NB: sex. 

Examples: Sex can be healthy or very destructive.

For an economy, healthful trade is done lovingly and for the benefit of both parties.  This roughly corresponds to a procedure in human beings called Down Sex.

Trade can also be only somewhat healthy and, in fact, wears out the participants.  This is what occurs with regular or usual sex.  A little is okay, but not really helpful.

Harmful trade is the same as rape.  Here one nation or society benefits a lot, while the other gets little or nothing in return.  It is called trade, but it should be called economic destruction of one nation or society by another.  This is more common than one might imagine on earth. 

The more powerful nation usually uses one or more of three methods to get what they want.

1. Actual force.  They might send their battleships to make sure the other nation or society goes along.  This is identical to a rape by force.

2. Threats of force. Sharp words or waving weapons around to force compliance.  This is the same as rape by threat of force.

3. Deception. The aggressor nation may lie and suggest a phony price for the goods they want, or tell the weaker nation that there are no other buyers – it is them or no one.  This is rape by deception.  All represent pure exploitation.

 To read a detailed article about rape in human beings, read Rape.

 

VARIETY

 

Definition.  A healthy economy has a lot of variety, meaning many different industries, different jobs and other opportunities for people.

Analogy with NB. Eating a varied diet with many foods.

Examples.  The United States has one of the most varied economies in the world.  It has manufacturing, agriculture, many services, electronics, banking, and more. 

In contrast, many nations have only one or two main industries, and this weakens the economy.  They may specialize in tourism, agriculture, or a particular type of manufacturing, but not others.

“Nutrient deficiencies” develop in these economies and they cannot make all their people happy because they lack economic opportunities in some areas.

 

INFLATION

 

Definition.  Normal inflation is a rise in the price of a commodity in response to a fixed supply and an increased demand. 

Structural inflation is somewhat different. It affects many products and services and is due to dilution or an increase in the amount of currency printed or debt issues by a government.

Structural inflation is one of the worst taxes or killers of an economy.  First, it is a tax on most items, since the price of all or most goods and services rises.  Secondly, it is regressive and harms those with the least money the most.  Third, it is very hard to figure out the real cause, so it is hidden.

Structural inflation of an economy is the perfect crime.  It transfers tremendous wealth from the poor and middle class to the wealthy class of people, and does so in a way that few of the victims understand.  Therefore, the victims do not know how to stop it. 

If they knew the cause, they would insist upon a balanced budget and no government debt.  Instead, they often vote for more government benefit and welfare programs, not realizing that this is the hidden cause of structural inflation and their impoverishment.

The upper economic class is usually protected from structural inflation because they own hard assets such as land, homes, cars, and gold, which rise in value in sync with inflation, protecting their wealth.  Poor people do not own assets, so they have no protection.

Runaway inflation occurs usually after a war or other catastrophe.  This is due to severe shortages of goods or services, mixed with improper monetary policy of diluting the money supply.  This combination is deadly to an economy and usually ends in a severe collapse of the economy and destruction of the nations’ currency.

              Analogy with nutritional balancing - our food supply on earth.  Our food in the past 100 years has suffered from inflation.  It looks the same, but its mineral content is 1/50th or less of the food grown 100 years ago.  This is easy to prove because the US Department Of Agriculture has kept records of the mineral content of food for about 80 to 90 years.

The cause is the use of hybrid crops and superphosphate fertilizers to increase crop yields.  This is exactly analogous to monetary inflation.  Interestingly, this change occurred, starting in the United States, about the same time as the dilution of the currency began – about 100 years ago. 

One of the effects is that people eat a lot more than they did before because their bodies need to eat much more to obtain the same amount of minerals.  This leads to obesity, the modern scourge.  Few understand that this is the real cause of much obesity and many other diseases today. 

Economies are also somewhat “bloated” and “obese” today due to inflation.  They have a lot of businesses in them that are toxic such as pawn shops, bars and pubs, houses of prostitution, junk food restaurants and others that are a direct result of inflation.

Also, structural inflation of the food (fewer nutrients in the same food) is similar to economic structural inflation in that it is hidden.  This is about the worst aspect of inflation of the food or the money.

Food inflation, however, ruins the health of everyone – not just the poor people.  The only people who are protected, and only to a degree, are those who find nutritional balancing with its special diet loaded with cooked vegetables and a regimen of the correct supplementary nutrients.  Even they suffer, however, because there is no really good food to eat.

Ending inflation.  In the healing field, trying to go back to the old food is very difficult because the old seeds produce much less crop per acre, so the farmers would likely starve and won’t grow it.  This problem affects our fruit, vegetables, beef, chicken, milk, and everything made with these foods.

Ending monetary inflation is similar.  No one in government wants to return to the old way of doing things because it would be costly for governments to have to pay their bills in uninflated currency.

Wild game is one of the few foods that has not been ruined.  This is like hard assets in the economy. 

A very few foods including blue corn do not grow well with the superphosphate growth stimulants that we improperly call “fertilizers”, so this food is somewhat better.  Blue corn, in the economic analogy, is a wonderful type of asset.

 

Watering down the blood.  Another very crude analogy in the health field would be if someone waters down a person’s blood.  If this occurs, more blood is needed to nourish the body.  Doctors do exactly this a little when they give intravenous salt solution (or saline) or sugar solutions (dextrose and water IV) to patients.

Fortunately, in human beings, the patients’ bodies quickly excrete the excess fluid to avoid serious consequences.  In an economy, getting rid of extra currency or debt is not nearly so easy. 

If a patient’s body could not excrete the extra saline or dextrose solution a doctor puts in his veins, it would cause a “runaway inflation” that would quickly lead to the death of the patient.

 

Worldwide inflation today and its effects.  Inflation upsets, destabilizes and weakens economies.  It is done in most nations today, so the effects are not clearly apparent, but the effects are similar.

Among the problems are that prices for common goods and services are always changing, which disorients and frightens people and causes insecurity.  Inflation also always causes slow impoverishment of the middle class and lower economic classes.

Liberal policies such as welfare and entitlement programs that claim to “help” the poor and middle class in fact cause more inflation so the poor become poorer and the rich become richer.  Very few people understand why this is so, and those that understand usually cannot explain it to the rest of the population.  As a result, the policies go on.  Continued inflation usually destroys nations!

 Types and examples of inflation. Normal inflation comes and goes as the supply and demand of all goods and services vary.  Structural inflation is occurring today in almost all major nations on earth because almost all nations are diluting their money supplies to hide their out-of-control spending.

Runaway inflation occurred most dramatically in Germany after World War I (early 1920s) when the German currency lost its value within about 10 months.  It took a wheelbarrow full of paper money to buy a loaf of bread when it was at its worst.  the currency was completely destroyed and it contributed to the Second World War.

Other runaway inflations have occurred in several South American nations due to wholesale printing of money with nothing to back it up.

 

DEFLATION

 

Definition. Normal deflation is a decrease in the price of a commodity or service in response to a fixed supply and a decreased demand.

Structural deflation is somewhat different. It affects many products and services and is due to a decrease in the amount of currency printed or debt issues by a government.

Analogy with nutritional balancing.  A crude analogy of structural deflation would be a decrease in the water content of the blood supply.  This would cause less blood to be needed to nourish the body.

Examples.  These are very hard to find because governments hate deflation!  Deflation of the currency means that debt-ridden governments must pay back their debts in more valuable currency, which they do not like to do because it exposes their evil spending habits.  Therefore, all governments tend to favor inflation and they tend to manipulate their currency to avoid deflation.

 

ADJUSTMENTS OR HEALING REACTIONS

 

            Definition. Temporary events that occur as an economy rebalances or heals.  A times, a harmful economic situation such as organized crime or unemployment moves from a chronic or ongoing problem to an acute situation because the society is now fighting back.

              In other situations, it is a temporary toxic condition as poisons in the economy are released quickly.

            In yet other situations, it manifests as a rapid or deep shift in the oxidation rate (employment) or another economic indicator.

Analogy with NB: Healing reactions.  They are also sometimes called purification reactions, aggravations or flare-ups.

            Examples:

            1. A flare-up of an “infection”.  As an economy improves, police move into drug-infested areas and announce that the thugs who sell drugs will be arrested and order restored.  The thugs respond by blowing up a few businesses, raping some women, and demanding more money from the other businesses to “keep everyone in line”.

            Upon superficial analysis, one might think the cleanup effort has failed.  In fact, the opposite is true.  The thugs are losing control and reacting the only way they know how – with more violence as a show of force until they are all arrested.

            2. Detoxification reactions.  As the economy improves, toxic or substandard situations are eliminated or removed.  For example, thousands of people in a city may be living in substandard, rat-infested apartments.  As the economy improves, plans are made to demolish these apartments and replace them with better ones.

While this is wonderful, thousands may be displaced until the new construction is finished.  This can cause problems getting to work, going to school, shopping and destroy the old neighborhood.  So they object and may riot.  In fact, this type of reaction can stop some good urban renewal projects.

It is also necessary in any recovery for the obsolete, criminal, or low-value businesses (equivalent to toxic metals and toxic chemicals) to either fail or be forcefully removed.  There is a time delay until new jobs and businesses arise and take up the slack.

            For example, in some areas of the world, quite a few people make their living selling sex or selling illegal drugs.  As the economy improves, the police demand that it stop.  This is a good thing, but it can be extremely disruptive until new employment for the people can be found.

            3. Decompensation reactions.  These are adjustments in the economy as it improves. 

            The economy was in a state of compensation and suddenly the compensation is no longer needed and ends.  Some people might lose their jobs, their pay or hours might be cut, work locations might need to change, or other disruptions occur.

For example, pawnshops are very important in certain economies to provide people with quick cash.  However, as the economy booms, this type of business may not be needed, and will fail, putting some people out of work.

4. A retracing reaction.  This is when an old problem was never handled correctly.  As economic recovery occurs, the nation or society is forced to go back “to the scene” and revisit the old problem, and bring it to a healthy conclusion.  This is often not easy to do.

A very current example is immigration into the United States through the Southern border.  Nobody wants to deport hungry and perhaps oppressed minorities back to poor nations when they could earn good money in the United States and even have enough left over to send to their loved ones back home.  However, if they are sneaking into the United States, they are breaking a number of laws, and bringing in diseases, drug dealers, thieves, and upsetting our economy and more.

What occurred in America is that the previous administrations basically ignored the problem.  The new administration was elected because people are fed up with this attitude and want to take their economy back.

However, recently when the president and Attorney General announced they will vigorously enforce the immigration laws and build a wall to keep people out, it is causing an uproar, protests and calls to impeach the president for cruelty.  This is an excellent example of this type of healing reaction.

              5. Emotional and spiritual reactions.  This is a reaction in a society or nation on an emotional, rather than a purely economic level.  It will affect the economy, perhaps powerfully, but the essential reaction occurs at another level.  A recent example is the election of Donald Trump as president of the United States.

            After only three months in office, the US is reporting a significant decline in illegal immigration, increased consumer spending, and lower unemployment, in part because more companies deciding to remain in the US rather than move their factories to nations with cheaper labor. 

            In part, the changes are due to an upswing in business and consumer confidence, as well as an increase in general happiness in the society.  In just a few months, there has also been an increase in the economic Na/K due to enforcing existing laws that had been ignored for years, in some cases.  In fact, the events are unprecedented and many are amazed by it – especially economists.

            In all these cases, it can look like things are getting worse for a time.  However, it is not true.  If the government will just have patience and keep their hands off, the reaction will pass.  Unfortunately, politicians who think short-term usually don’t do this.  Instead, they react with stupid welfare programs or other laws that prolong the reaction or perhaps stop the healing process altogether.

            Rarely, a healing reaction becomes so violent that measures must be taken to mitigate it.  For example, if taking away the people’s livelihood that involved selling opiates upsets the people to such a degree that they take up arms and begin rioting, then measures are needed to slow down the healing reaction.

 

HOLISTIC HEALING

 

Definition.  In economics, this means that if there is a problem in one industry or area, do not just look at that industry or area to find the solution.  Also, look at the structure and functioning of the entire economy using the economic balancing method of assessment.

This approach is based on systems theory, a very powerful way of analyzing all complex phenomena including economies.  

            Analogy.  This is the same approach used in nutritional balancing.  One never focuses just on symptoms.  One also balances the entire body or whole system using the oxidation rate, the Na/K ratio and very specific methods.  This is always more effective than just focusing on correcting symptoms with remedies.

            Examples.  All economic difficulties, in this analysis, can be viewed as local expressions of a deranged whole system.  This applies to unemployment in one sector of the economy, for example, or to shortages of one kind of commodity or service.  It might apply to oversupply, inflation of prices of one kind of good or service, or any other problem that arises.

 

DEFENSIVE ECONOMICS

 

            Definition.  This is when an economist or financial planner makes recommendations to a government, usually, about how to fix their economy that assumes the worst case scenario instead of looking at the actual situation.  As a result, the recommendations are usually incorrect and can make the situation worse.  Many economists do this simply to protect themselves from lawsuits.  Hence the term defensive economics.

              Analogy with nutritional balancing.  This is identical to defensive medicine, a very common practice today.  This is when doctors recommend tests, drugs or procedures that are not based on the facts of the case, but rather based on preventing possible lawsuits.  In both situations, it is dishonest and often harmful for the “patient”.

            Examples.  A common example is that an economic advisor senses that an economy is slowing down, even mildly.  He does not want to be held accountable for it. 

So he or she advises the government to put in place a stimulus program immediately to forestall any further slowing.  This unbalances the economy and can actually cause the very problem the economist wanted to avoid.

 

GIVING TOXIC DRUGS TO AN ECONOMY

 

            These are of three main types:

1. Stimulus programs.  These are analogous to giving stimulants to a human or animal body.  They produce a quick effect, but they leave the body or the economy more worn out and out of balance afterwards.

              Examples are the stimulus programs done in the United States in 2009 by the Obama administration to get the economy going again after the decline in 2008.  They made a slight difference at first, but the economy then languished and is still sluggish in 2017.  This is a typical response to a stimulus or stimulant.

2. Suppressant programs.  This is identical in its effect to giving a suppressive drug to a person or animal.  This is done, at times, to “cool down” an “overheated” economy.  In reality, it is done to tame inflation, one of the enemies of a stable economy, when the real cause is not understood.

This type of ‘drug’ also has only a short-term effect, just as medical depressant or suppressant drugs such as tranquilizers only have a short-term effect.  They do nothing to correct the cause of the problem, so the problem usually comes roaring back in a few years.

3. Giving a killer.  A killer in economics is a tax increase.

Analogy with nutritional balancing.  This is analogous to giving an antibiotic to a human or animal.  Antibiotics kill germs.  The problem is they are also somewhat toxic to healthy cells.  In economics, the same is true.

Examples. For example, it could be an income tax increase, a new sales tax, a value added tax or VAT, or it could be a tariff or import tax.

These have different effects depending on the nature and size of the tax.  If done right, the effect is mild and it could even balance out the economy.  Usually, it is not done correctly and the effect is just to unbalance the economy more.  How to impose taxes is a delicate subject discussed later in this article.

There are other ‘toxic drugs’ used in economies, just as there are many drugs given to human beings and animals.  The above is an introduction to the subject of ‘drug medicine’ of the economy, a method we rarely recommend either for economies or for people.

 

HEALING LATENT OR SUB-CLINICAL CONDITIONS

 

            A very important concept and great advantage of this method of economic analysis and correction is that it will correct problems that are not obvious and may be producing few or no symptoms.  These include latent and sub-clinical problems.

 

            Latent problems.  These are serious economic problems that are still in their early stages.  However, if left alone, they will grow and can cause havoc with the economy.

            Often, they are producing few disruptions or other symptoms at this time.  As a result, they are missed or minimized by most economists, legislators and other leaders of the society.  Usually, they are not included in even the best economic analyses, so they are overlooked until they appear full-blown and then are difficult to fix.

            However, if one follows the procedures in this article to correct economic imbalances, these will be exposed and corrected, usually without much effort expended.  This is a great advantage of this type of economic analysis and correction.

            Example.  Organized crime may be moving into an area slowly and quietly so as not to attract too much attention.  They may not be coercing the businesses too much, so there is little real effect at this time.  However, if left unchecked, in a few years the situation could explode.

 

            Sub-clinical problems.  These problems are similar to those above, except they may be full-blown problems that simply do not produce easily measured negative effects.  Once again, they are usually ignored by most economists because they give few outward signs and symptoms.  Yet they are important.

            Example: More and more people are moving into the tourism industry in an area because several new hotels were built there.  No one notices because it does not upset things much.  However, the economy has become “top heavy” with tourism, as a result, and is less resilient and healthy.

            There could be few outward symptoms of the problem until a stress on the economy produces a major crash.  Economic balancing, however, would discover the truth early and show the way toward correction.

 

REWARDS

 

            Definition.  Rewards are types of incentives that make people happy.  They include financial rewards, but also include reduced work hours, increased employee benefits, better working conditions, awards and perhaps a few other items.

              Analogy with nutritional balancing.  Something similar is to balance the body chemistry, remove toxic metals and reduce stress on the body.  While this does not always make a person happier, it often does.

              Examples.  Employee benefits include such items as vacations, pensions, sick pay, wellness programs, child care and others.  Better working conditions might include improved lighting, new furniture, a new cafeteria, or more parking for employees.

 

FULL AND EMPTY ECONOMIES

 

            Definition.  A more full economy is one that offers many industries, many products, many services and many opportunities for personal development through work.  There is usually a lot of private employment and thus a faster oxidation rate.

The nation or society is more yang, a Chinese word that means warm, dense or compact, and faster moving.

A full economy is always a varied economy.  However, a full economy is more than just varied.  It is also bustling or rich with activity.

            A relatively empty economy has fewer industries, fewer products, fewer services and fewer opportunities for people of the nation or society.  It has lower private employment, a slower oxidation rate, and it is more yin in Chinese terminology, which means empty, cool, and more sluggish.

            One can have combinations of the two with some sectors more full and others more empty.  Usually, for purposes of analysis, one takes an average to evaluate an economy.

            Analogy with nutritional balancing.  This is identical to describing bodies as more yang or more yin, and in fast or slow oxidation.

              Examples. As a rule, free market or capitalist economies are far more full than socialist or communist ones.  There are many reasons for this having to do with incentives, personal freedom, simplicity of the laws, and more.  This is an important advantage of capitalist or market economies.

 

OVERHEATED ECONOMIES

 

              Definition. This is an economy that is on fire, out of control, and usually somewhat crazy.

            Analogy with nutritional balancing.  This is a fast oxidizer.  The body is too hot, irritable, often in a fight-or-flight mode, and often somewhat hyperactive or hyperkinetic.

              Examples.  When gold or oil is discovered at a location on earth, this kind of economy can come into being.  People who formerly did not have much money suddenly have lots of money.  They spend it foolishly, getting drunk and partying a lot.  It is all somewhat wild and out of control.

              A number of years ago the Chinese economy was overheated, growing at 11% or more per year.

 

FAT AND THIN ECONOMIES

 

            Definition.  An overweight economy is one in which there is too much retail industries and not enough manufacturing.  Thin economies are the opposite.  They have plenty of manufacturing and heavy industries, but not much retail industries.

Analogy with nutritional balancing.  This is analogous to obesity in a human being or animal.

Examples. The United States and Europe today are examples of fat economies.  They are not healthy for this reason.

A thin economy is more rare.  North Korea, for example, has a thin economy with most of the nation’s resources devoted to weapons manufacture, although it is not a major weapons maker.

 

CHAOS

 

            Definition. Chaos that is really fine-tuning is an important quality of any free market economy.  It looks like a certain amount of randomness, craziness, or impropriety.  In reality, it is a vibration back and forth and up and down that is imperative for the proper functioning of the economy.

            Socialist and Marxist economists do not like free market economies, in part because of this chaotic quality.  Dictators also do not like them for this reason, as the chaos is hard to control and to “read”.  However, it is a vital quality of the whole system of an economy.

            Analogy with nutritional balancing. During a nutritional balancing program, people will go through some fluctuations in the way they feel, and on their blood, urine and hair tests.  This is normal and expected.

            Example:  In a capitalist or free market economy, people constantly experiment with prices, advertising methods, production methods, distribution, sales methods, and more.  Without this experimentation, they would make much slower progress in improving efficiency and sales of their goods and services.

            To the untrained eye, some of this can seem crazy and chaotic.  For example, some advertisements seem really stupid or odd.  Some product design can seem strange.  However, it is absolutely necessary for the proper operation of the economy.

            Socialist economies have much less of this kind of chaos in them, mainly because it is not permitted.  However, these economies are much less productive.  They have plenty of chaos, but it is of a much more destructive type and may not be obvious.  It shows up as strikes, bombings, riots, shut-downs and other problems.

 

CHANGE OVER TIME

 

            Definition.  Healthy economies are never stagnant.  They are extremely dynamic and hard to read and pin down.  They have a life of their own.

              Analogy with NB. Bodies go through many complex changes on a nutritional balancing program that are often very difficult to understand.  This is normal.

              Example: Vibrant capitalist economies are very dynamic and lively creatures.  The main reason is that this is permitted and even encouraged.  This economic system rewards changes that benefit large numbers of people.

In contrast, socialist, communist or progressive economies change relatively slowly.  The reasons are they are weaker economies, and they often do not reward change, even if it benefits the population.

 

INVENTION OR INNOVATION

 

            Definition.  New products or services that offer value in the economy.

              Analogy with NB.  New testing methods, new foods, new vitamins and other discoveries that promote health and healing.

              Examples.  Vibrant economies need inventors, innovators and problem-solvers.  This is the life blood of an economy.  This group of people are very underrated and often underpaid.  That is why they are included in this section of the article.

 

A MORE INTELLIGENT ECONOMY

 

            Definition.  The people understand the rules better, communicate better, process economic information better, and for these reasons make better economic decisions. 

This is a wonderful side effect of economic balancing that does not occur with most other approaches to economic recovery.  In fact, it is the reason this method is superior.  It enhances the recovery greatly, which has far-reaching effects.

Examples.  If one makes the tax code more transparent, which is one of the essentials of economic balancing, the people suddenly can see exactly how much money their government is taking in, and how it all works.  This alone will increase the people’s economic intelligence greatly.

Rewriting the laws of the nation or society to make them much simpler and easier to understand enables people to learn the laws and live within them easily.  This, in turn, enables them to spend more time in productive activity, instead of worrying about complying with hundreds of arcane and confusing rules and regulations.  This method is also used in economic balancing science.

In fact, all the corrective measures used in economic balancing have a similar intent and effect.  The cumulative effect upon economic intelligence is tremendous.

 

PAUSES IN AN ECONOMY

 

Definition.  A pause is simply a break or change in focus.  These are important for economies.  The reasons are:

1. Pauses are helpful to avoid boredom.

2. Pauses are a time for reflection and rethinking one’s business or situation.

3. Often, one can get creative ideas to improve business during a break.

4. Some businesses actually go off in a new direction after a pause.

5. Pauses are sometimes used to repair or replace machinery and other equipment, or even to move a business or factory.

Analogy with nutritional balancing.  These are the same as pauses or breaks that people take during the day, once a week on the Sabbath, and other breaks such as vacations, retreats, sabbaticals and others.

Examples.  Closing one’s business on Sunday or for a holiday is a simple type of pause.  Other types of pauses are when an entire society takes a holiday, such as for Christmas in Western nations.

Individual businesses take pauses to refurbish and make repairs, install new equipment, or just because the owners want a break.

 

SLOGANS

 

Definition.  Slogans are made-up names or phrases that businesses use to help people associate their product or service with qualities the company wants people to think of when they think of their product.

Slogans have to do with branding, a very important concept in a market economy.  Branding is the idea that people will come to identify a product with a particular brand that they trust and will keep buying for this reason.

Analogy with nutritional balancing.  The body tags thousands of molecules so that it can readily identify them.  This is the same idea as slogans.

Examples.  Kleenex, a brand of facial tissues, has the word ‘clean’ in it.  Many people in America, in particular, don’t even use the word facial tissues.  They say “I need a Kleenex”.  This is an example of how a company has conditioned people to think of their brand of a product.  The same principles applies to thousands of products and services in free market economies.

 

POLICE OR IMMUNE SYSTEMS

 

Definition.  Economies require policing to remove criminals and stop cheating of all kinds.  They are also needed to keep people safe while they engage in economic activities such as shopping, making things, distributing and selling things.  Otherwise, people will just stay at home and the economy will crash.

Analogy with nutritional balancing.  This is the same as the immune system of a body.  It is a highly sophisticated and complex system to keep out unwanted elements.  If the system breaks down, health is seriously compromised.

Examples.  The parts of the “immune system” of an economy include:

1. Clear, sane criminal laws.

2. An excellent police force.  The police need to have the authority and power they require, cannot be corrupt, there must be enough of them, and they must be effective.  They also need to treat the population well.

3. Other.  There also needs to be courts, judges, juries, prisons and other parts of the justice system to maintain the economy.  Nations that do not have all this legal infrastructure never have good economies.

 

SHORT-TERM/LONG-TERM

 

Definition.  Most economic fixes are short term.  Economic balancing is a long-term system that works much better if one gives it time.  However, politicians who must run for re-election every few years want fast results and often do not like longer-term solutions.  This is a serious problem to be aware of.

Analogy with nutritional balancing.  This is the same problem we have with NB versus medical drugs.  Drugs give instant relief, but then they stop working.  Nutritional balancing works slower, often, but it lasts.

Examples.  The most common economic fix is a stimulus package to “kick start” the economy.  This is like eating sugar.  It works for a time, and then it leaves the economy worse than it was before.  Yet governments use it over and over because it gives a quick boost – similar to a medical drug that just suppresses or stimulates.

 

ECONOMIC TREASON

 

Definition.  Treason has varying legal definitions.  We hereby propose that a crime be designated called economic treason.  It would be used to remove the worst criminal elements from a society.  It would be defined as:

1. Any act done with the intent to destroy the economy of a nation or society

2. Giving aid or comfort to the enemies of the economy of a nation or society.

3. Treason does not require that the nation or society be at war with another nation. 

4. Treason does not include negative or harmful thoughts, but only actions.

5. Treason is not the same as just cheating or stealing.  Treason is similar, but occurs on a larger scale.  The worst of it is built-in or structural to an economy, and often perfectly “legal”.  This is a very serious problem with all earth economies today.

 

Why is this important?  Because those who steal, cheat, counterfeit, or engage in fraud, misrepresentation, or negligence, are a mortal threat to an economy.  These crimes need to be prosecuted immediately and very harshly to preserve the economy.

Analogy with nutritional balancing.  This is the same as having a strong, competent immune response in a body.  It is imperative to maintain health.

Examples.  This is very important and very controversial.  So hold on to your hat!

The financial industry:

1. We consider many, if not most Wall Street activities to be treason because they cheat people out of their money.  Those doing it such as all the brokerage houses should all be shut down and the principals thrown in jail.

In fact, the entire stock market needs to be closed down.  This is a drastic move, and some would say that capitalism could not survive it.  We respectfully disagree.  Capitalization would need to occur privately, and it would continue this way.  The stock market and its system of brokers is just too easy to cheat and manipulate.

2. Fiat money is treasonous, whether it is paper, base coins, credits or other electronic currencies.  Sadly, these are the standard today the world over.  The only money that is not so easy to corrupt is gold.  Any nation that uses it should be expelled from the world economy until it changes to a gold standard.

3. Lending institutions the world over are treasonous because they use fractional reserve banking, a fraudulent method of accounting that allows banks to make a fortune at the expense of their depositors.

4. Even more treasonous are the central banks of most nations, including the United States.  They have an unholy monopoly, destroy the money via inflation, and do a host of other horrible things that amount to stealing and definitely treason.

Other areas of the economy.

5. The medical profession in many nations is treasonous when they poison people and say they “cure” people.  In addition, they don’t allow non-doctors to use the terms cure, diagnose or treat.  This is treasonous since it is a method of thought control and has nothing to do with healing.

6. The public school system in America and Europe, in particular, is treasonous because they teach liberal values that are false, allow drugs and rape on their premises, and do other things that ruin children’s minds and bodies.  These days they also teach altered history and political correctness, both of which are false.

7. Tax cheating by individuals and companies can be treasonous when it involves a lot of money.

8. Welfare fraud and insurance fraud, when they involve large sums of money, are also treasonous for an economy.

9.  Government corruption, which all governments have today to some degree, is also often treasonous for the economy.  It basically redistributes wealth secretly from those who generate it to a class of parasites who don’t deserve it.

10. Fake religions, when they have many members, are treasonous for an economy because they control large numbers of people and their money.

If these and perhaps other egregious crimes were cleaned up, the world’s economies would all operate far better than they do today.  Most people would have plenty of money, the parasites would either have to get a job or live in poverty, and life would be so much better it would hardly be recognizable.

 

OUTSOURCING

 

Definition.  This is when one business hires a second business to do certain tasks.  Often, outsourcing involves going to other nations to hire workers.

Governments also outsource various tasks, such as buying and setting up their computers, construction, road repair, and many other tasks.

This is related to subcontracting.  Once again, one business acts as the main contractor or responsible party to accomplish some work.  This business, in turn, hires others to actually do the work.  The contractor becomes a supervisor of the sub-contractors or those to whom one has outsourced the work.

Examples.  A common example is when one hires a contractor to build a home, the job involves dozens of separate tasks.  Often, the contractor will do a few and will outsource or subcontract the rest.  These might include digging a foundation, framing the house, installing drywall and texture, landscaping and more. 

 

A LAZY ECONOMY

 

Definition. This is an economy that is not producing many new businesses.  People are too content to just sit around, rather than work to create new businesses.

Analogy with nutritional balancing.  This is somewhat similar to a low phosphorus level on a hair test.  It is an indicator that protein synthesis, or building new protein, is sluggish or weak. 

Examples.  European and South American economies, in particular, create fewer new businesses than most Asian or American economies.  One reason is the character of the people in these nations.  There may be other reasons such as incentives, laws that block or make difficult startups, and othe reasons.

 

TURNAROUND

Definition.  This is an upswing in economic activity that indicates revival and speeding up of the economy, with more job creation.  This is what all economists want to see in a sluggish or collapsed economy.

The problem with turnarounds is they can be short-lived, or even fake.  Also, at times a turnaround causes temporary pain or dislocation in an economy as toxic businesses close down or other balancing occurs.  It takes some practice and experience running the numbers to assess whether a turnaround is real and will last.

Analogy with nutritional balancing.  This is evidence that a person is really feeling better and on the road to recovery.  Once again, it can be tricky because symptom removal is not the same as a turnaround in your health.  Also, at times symptoms become worse for a while, even when deeper healing is occurring.

As with the economy, “running the numbers”, meaning reviewing successive hair mineral tests, can be most helpful to assess whether a turnaround is occurring.  Blood or urine tests are much less useful, in our experience.

Examples.  Many people credit the Obama administration of “saving” the American economy after the slowdown of 2008.  However, checking the real employment numbers makes clear that there never was a real recovery or turnaround.

Figures were manipulated to make it look like things were better, but they were little better.  This is one reason the Democrats lost the 2016 election.

 

THE ABSURD IN AN ECONOMY

 

Definition.  Economies all have some absurd or humorous qualities to them.  This may sound unusual, but it is important to recall.

Capitalist economies allow these absurdities, and they enrich life, even if we do not understand them.  At times, they foretell the future, as well.

Analogy with nutritional balancing.  At times, during a nutritional balancing program, very unusual symptoms occur.  One simply allows them and they pass on their own.

Examples.  An absurd in an economy is when a stupid, fairly useless product sells millions of copies and people become all excited about it.  It occurred in America with the Hoola Hoop, for example.  No one ever figured out why this product sold so well.

 

ATTRACTORS

 

Definition.  These are ways to draw people to a product or service.  Advertising does this, but there are many other ways, as well.

Analogy with nutritional balancing.  The body has sophisticated and unusual ways of moving nutrients around the body so that they end up where they are needed.

Examples.  These can be divided into direct methods and indirect or reactive methods.  These are not always mutually exclusive, but this division may help understand them better.

Direct methods.  In addition to advertising, direct attractors include press releases, public service announcements, reviews, propaganda (or fake news), newspaper and radio reports and stories, television and movie documentaries, and first-hand accounts by people who have experienced a product or service.

Indirect or reactive methods.  These include inducing fear in the population and then skillfully using this to direct people to a product or service to allay their fears.  The medical profession is proficient at this tactic.

Another indirect method is to suppress alternative advertising, press releases and more so that people’s only option seems to be to use a particular product or service.  This method is also widely used by the medical profession.

Another indirect method is to make people very angry on a false pretense, and then suggest your product or service as the remedy.  Although it is a political example, Adolf Hitler need to “sell himself” to the German people.  He arranged a fake attack on the German parliament and then brought in his troops to stop it, making him a hero in the people’s minds.

 

AN OPEN ECONOMY

 

Definition. This is an economy with plenty of opportunities to start businesses, change jobs, and generally to be creative.

Its opposite is an economy with all sorts of rules about hiring and firing people, and lots of paperwork required to begin a business.

Analogy with nutritional balancing.  A healthy body is flexible, can change its oxidation rate as needed, and can adapt easily to conditions around it.

Examples.  America used to have an extremely open economy.  This has changed somewhat, but it is still better than most other nations.  Hong Kong and Singapore also have fairly open economies.

 

YIN DISEASE IN AN ECONOMY

 

Definition.  This is a modern welfare state.  Its characteristics are:

1. It is “fat”, meaning it has too much retail and not enough manufacturing.

2. It is “cold”, meaning it is sluggish and often on the verge of collapse.

3. It is full of parasites.  These are people who live off the work of other people.

4. It is corrupt in all cases.

5. It operates inefficiently for all the above reasons.

 

Analogy with nutritional balancing.  Yin disease is very common today among human beings.  It means the bodies are too yin, which includes cold, expanded, yeasty, tired, depressed and more.  For details, read Yin Disease.

 

Examples.  Yin disease is widespread in economies on earth due to welfare, which is like eating sugar and fruit all the time in a human being.

 

FUN, COLORFUL, HAPPY, INVITING ECONOMIES

 

Definition.

 

Analogy with nutritional balancing.

 

Examples.

 

LEASHES

 

Definition.

 

Analogy with nutritional balancing.

 

Examples.

 

PAIN IN AN ECONOMY = inefficiencies

 

Definition.

 

Analogy with nutritional balancing.

 

Examples.

 

PREFERRED INVENTIONS

 

Definition.

 

Analogy with nutritional balancing.

 

Examples.

 

PLACEHOLDERS

 

Definition.

 

Analogy with nutritional balancing.

 

Examples.

 

 

IX. ECONOMIC “DISEASES”

 

            Problems in an economy are exactly analogous to common human and animal diseases.  Here are some examples.

 

ANXIETY ATTACKS OR PANICS

 

            Economies are very prone to panics or runs.  They start when something triggers anxiety in the population or among businesses.  It could be a natural disaster such as a bad storm, or a change in policy by the government, or perhaps a war somewhere.  It can also be a combination of factors that happen to occur in close succession. 

            The result is widespread anxiety.  This, in turn, causes a business downturn that causes more anxiety and panic.  In a few short weeks, the problem can escalate into a full-blown panic or anxiety attack.

            Analogy with nutritional balancing.  This is exactly how a panic attack occurs in the body.  It is a cascade effect that can occur within seconds or minutes.

YIN DISEASE

 

            This condition is not known in modern medicine, but it is very real.  Some day it will be recognized by doctors.  An analogous condition occurs in economies and is quite serious.

            Definition of yin. Yin is a word in many Oriental languages that refers to a condition of atomic particles.  We use the term because there is no equivalent in English.

Yin refers to particles that move slowly.  Slow-moving particles cause their container to be cool or cold.  Often, the particles are few in number, causing an appearance of emptiness.  Due to low numbers and slow movement, the pressure is also low.

           

Definition of yin disease in an economy.  Yin disease is a constellation of symptoms in an economy that are often found together.  They include sluggishness and emptiness (see Emptiness under Vital Concepts).  Often there is an apathetic attitude toward law enforcement, corruption, and even concerning telling the truth.  Debt and addiction are also features of yin disease.

 

Causes for yin disease in an economy.  Yin disease can occur when the bodies and/or minds of many people in a nation or society become too yin.

It can also occur if the leaders act in a yin manner.  In some cases, the reason is the legislators and others are themselves too yin.  In other cases, acting in a yin manner is just a tactic to damage the economy.

For example, an important governmental cause of yin disease is too much government welfare.  This may occur because people are weak and ill, and don’t want to work.  It can also occur because the leaders want to discourage the people, and make them weak and dependent upon government programs.

 

Symptoms of a yin economy. 

Sluggishness.  The economy is not vibrant or robust.  It is fragile, weak, sluggish and prone to recession.

Empty.  This means that the economy is unbalanced and usually missing some important types of businesses.

Lying and deception.  Individuals and businesses that are yin have a greater tendency to lie and deceive each other.  Governments move economies into yin disease when they lie and deceive their people.  It causes confusion, another quality of a yin economy.

Laxity in law enforcement, and perhaps other aspects of economic regulation.  This leads to corruption, in all cases.  In fact, this is sometimes the reason the government causes yin disease in an economy.

Debt.  This includes private sector debt (individuals and businesses) as well as government debt.  Debt can be due to mismanagement of money.  However, it is often due to bad laws, lax enforcement of financial laws, or an intentional effort to ruin an economy.

Chaotic. There is usually too much chaos in the economy.  Some chaos is good.  However, in this case it is excessive due to the factors above.

 

            Correction of yin disease.

 

 

ADHESIONS = TRADE UNIONS OR LABOR UNIONS

 

Definition. An adhesion is an abnormal and harmful sticking together or association of the tissues of a body.  For example, after surgery of the intestines, many people get adhesions which can be life-threatening.  Scars are also a type of adhesion.

The problem with adhesions is they prevent the movement of tissues and organs one over another, which is necessary for health.  For details, read Adhesions.

 

LABOR UNIONS ARE ADHESIONS IN AN ECONOMY

 

Definition.  (NOTE: The common definitions of unions are wrong!)  Trade or labor unions are small groups of workers in an industry, usually assisted by communist organizers.  They take advantage of laws in most nations that permit a small group who supposedly represent all workers in a factory or even an industry:

1. To control who works in the industry or factory.

2. To negotiate with the management of the company, as though they represent all the workers.  This is called collective bargaining.

They may negotiate issues such as wages, working conditions, work hours, vacations, pensions, hiring and firing policies, retirement programs, and perhaps other issues.

3. Other.  A union might also control the type of education the workers receive.  This is true to a degree in the medical field, for example, which is like a unionized industry.

This definition is very important in order to understand the harm that unions do to an economy. 

 

A danger to economies.  In the economic balancing model of how an economy should function, unions are toxic and dangerous for an economy.  The reasons are:

1. Unions often act violently to achieve their ends.  They rationalize terrorist acts against businesses and individuals as being needed to oppose “oppressive” company management.

2. Unions usually have a left-wing political agenda.  They have a long record of giving money to communist and socialist organizations.  These are groups that seek to destroy all free market economies.

So while unions claim to simply represent the interests of the workers, in fact they are subversive organizations that want to destroy the economy.

3.  Unions often do not represent a majority of workers in a factory of industry.  Yet they are given a lot of power by bad laws.

4. Unions often attempt to limit competition in an economy by forcing all workers in an industry to be union members. 

They also limit the individual workers’ ability to negotiate the terms of his or her employment.  Instead, the union engages in “collective bargaining” on behalf of the workers, whether the workers want it or not! 

Analogy with nutritional balancing.  This is a type of infection or cancer that is always dangerous for an economy.

Examples. 

1. In Europe and Asia, unions are very widespread.  Communist nations do not allow them.  In the USA, some states are “union states”, mainly in the North, while others are “right to work” states, most of which are in the South of the nation.  They have weaker union laws.

2. Certain industries such as automobiles are often unionized in many nations. 

3. All licensed professions have a type of structure that amounts to a union.  These industries include teachers, doctors, attorneys and many others.  They do not fall under trade union laws.  However, the profession is rigidly controlled by a licensing board and a trade organization that effectively decides who works, what they do, and they may set some other work conditions.

            For example, the medical boards, who all operate together under one secret medical board in each nation, grants licenses to doctors that allow them to practice medicine.  They also control hospital residency programs and even medical school education by various secret methods.

They also go after anyone who attempts to do things differently or who tries to work without their approval.  It all amounts to fairly total control of an industry, very similar to a trade union.

            4. Public sector unions.  These are perhaps the worst unions.  They are groups that represent government workers such as teachers, bureaucrats, service workers and others.  They have millions of members who all are forced to pay dues to the union whether they want to or not as a condition of working.  The union funnels money to left-wing causes and candidates, whether or not the membership approve. 

These unions have absolutely no reason to exist.  There is no “oppressive company management” attacking the workers.  Quite the opposite is true, in fact.  Here the “boss” is the government, who is often on the side of the unions in their negotiations.

As a result, these unions get their members good wages and benefits, often at the expense of the public, and at the expense of those the union is supposed to serve, such as the school children.  For example, in the United States, the average federal government worker makes twice as much money as the average private sector worker when one includes health, retirement and other benefits that government workers receive.

In the United States, even the left-leaning president Franklin Delano Roosevelt forbade the establishment of public sector unions, which he believed were just a menace to society.

 

INFECTIONS OR THUGGERY

 

Definition.  An infection in economics is any foreign invasion of an economy.  There are several types.

Analogy with nutritional balancing. Infection in an economy is like having a virus, bacteria, fungus or parasitic infection in a human or animal.

Types of economic infections:

Viral infections: These criminals turn others into criminals, just as viri enter body cells and cause them to reproduce the virus.  Bad laws, for example, sometimes turn decent people into cheaters just so they can survive.

Bacterial infections: These are mainly small-time criminals, though they can team up and be a real threat. They include thieves, tax cheaters, counterfeiters, fraudulent businessmen and others.  They also include illegal immigrants who break the law to enter the nation, break the law to remain in the nation, and break the law to earn money when they are not citizens.

Fungal infections:  Fungi live off the dying flesh.  Sadly, a significant percentage of the medical profession does exactly this.

In America, for example, fully one half of the cost of person’s lifelong medical care is incurred in the last 6 months of life.  People’s money should go to their children or to charity, but instead it goes to doctors and hospitals.  While this may appear “compassionate”, a lot of it is just parasitic.

Parasites.  These are larger ‘creatures’ that infect economies.  They are highly organized crime groups that are much more sophisticated in their criminal activities.  They include the mafia and other such groups.  Their crimes may include smuggling, money laundering, selling illegal drugs or other illegal substances, bribing officials in return for payoffs, and much more.

Central banks are all organized crime organizations, even if they are legally allowed to exist.  We also include Wall Street firms and all banks in this group of infections.  They take advantage of loopholes in the laws or unfair laws, such as fractional reserve banking, to suck millions of dollars out of the economy.

 They are not easy to dislodge until one upgrades and heals the entire economy – its constitution, its laws, its enforcement of the laws, and more. 

 

            Infection and the Na/K ratio.  A low Na/K ratio is a chronic infection pattern.  In other words, bad laws or poorly-enforced laws always lead to many infections in an economy. 

 

CANCERS

 

            Economic cancers can be tiny, or can overwhelm an economy.  They are subsidiary economic centers that operate on a different basis.  Instead of helping everyone with free markets and free exchange of information, they invade, metastasize and destroy everything around them.

            The simplest of these is a rebel military group living in the mountains that sustain themselves by raiding the local people for food, water, money and other supplies.  If this is small, it poses little threat to the larger economy and can usually be handled by the local police or military.

            However, if it grows, which is often does, the rebels obtain larger weapons, aircraft, shoulder-fired missiles, ships, and more.  This is what has occurred with some drug lords in South America, for example, and in Afghanistan.  These are more difficult to eradicate and will cut into an economy.

            Even worse was the situation in Nazi Germany.  Some would say the former Soviet Union and even the present nation of Russia is one rebel nation that rather than having a healthy economy, attacks and consumes its neighbors and, if permitted to do so, would completely destroy them or “eat them up”.

            This is fatal economic cancer!  It must be contained, and this is one of the essential battles now occurring on earth between the capitalist nations and the communist or socialist nations that really produce very little and live as parasites on those that do produce many goods and services.

            President Obama of the United States was perfectly willing to give away the wealth of the United States, for example, to all the poor communist nations that cannot feed themselves because of their flawed economic and political systems.  This is like opening a wound and pouring in cancer to consume and destroy a nation.  Mr. Trump was elected to establish the opposite policy and save the nation.  We hope he succeeds – in spite of the leftist media in the United States and around the world.

            Just as there are very toxic cancer remedies for humans, there are toxic remedies for economic cancers.  However, these are usually not needed if one studies and uses more natural remedies that, when applied correctly, can work well.  This topic is beyond the space we have for this article, but will be developed in the future.

 

HEART ATTACKS OR SUPPLY INTERRUPTION

 

            This is usually due to a transportation catastrophe.  Examples are rare, fortunately.  These attacks, as with the bodies, are of two types. 

            1. Random catastrophe.  This is a relatively simple blockage situation in a major artery of a nation or society.  It can be minor, such as a serious accident that shuts down one major roadway or bridge.  However, it could be very extensive and affect all the roads, bridges, trains and aircraft in an entire nation.  This occurred in Haiti a number of years ago, for example.

            A severe earthquake destroyed all the major roads and bridges on the island.  Supplies could not reach the area, electricity and natural gas were not available, and government services ceased.  Businesses failed because they had no merchandise to sell.  Infrastructure such as telephone, radio and television system stopped due to broken wires and no electric power.

            This type can be severe, but usually the economy bounces back fast, usually with outside help from charity groups and other emergency crews.  Some people die, but the economy comes back quickly when the roads are rebuilt and electricity restored.

            2. The spreading type.  The second type of economic “heart attack”, which is the same as what kills human beings, is much worse.  The great depression is an example. 

            The depression began due to the collapse of the stock market after the “roaring 20s”.  This affected relatively few people, notably the investor class and some businesses, but not that many.  Most people lived on farms and were not affected at all.

            However, the government of the United States panicked and put in place measures to supposedly correct the problem that made everything worse.  As a result, the problem spread.  This is why this type is called spreading.

            Soon panic occurred among some businesses that employed hundreds of people and they laid off workers, fearing the worst.  This caused a chain reaction that ripped through the economy and caused panic in almost every sector of the economy.  The more the government tried to stop it with government make-work programs and draconian wage and price controls and other failed policies, the worse things became.  Some actually believed the United States would go bankrupt and cease to exist.

            This is analogous to a fatal heart attack.  What occurs is not a blockage of an artery (or transportation artery in a nation.)  This might be a trigger, but is not the real problem.  The real problem is the panic that comes after the trigger.  The panic disrupts ALL activity in the body, or in the nation, and this can be fatal and often is fatal in a human body.

            For one thing, stopping it is much harder.  One cannot just call in the Red Cross or the Christian Relief Funds.  It won’t work.  Similarly, in a human being, just lying in a hospital bed or replacing a clogged artery will not stop this kind of heart attack.  So it can be fatal.

            However, with this type of economic analysis, as with hair mineral testing, one can discern which type of heart attack is likely or is occurring, and know exactly what to do to stop it.

 

STOPPED CIRCULATION = CARDIAC ARREST

 

            This is different from a heart attack.  It is when the circulation stops entirely due to a problem with the control system.  In the body, the control system is the pacemaker of the heart.  In an economy, the control system is traffic lights, and air traffic control towers.  When there is a problem in these, it can cause major supply problems in a nation or society.

 

CONSTIPATION OR A “STINKY” ECONOMY

 

            Economists don’t speak of a constipated economy, but they may speak of a stinky one.  It is a nation or society that makes a lot of waste products and does not get rid of them well enough.  It causes filth, stench and disease.  India has this problem, as do a few other nations.

            This is not exactly the same as pollution, which is a larger problem.  This is a special type of pollution with human and animal waste that is particularly smelly and dangerous for one’s health.

 

SELF-MEDICATION

 

            Definition.  In dysfunctional economies, which is almost all of them, people do what they need to do to survive and thrive.  This is exactly the same as what people do when they are not feeling well and they do not get help from their doctors. 

Self-medication is when people take matters into their own hands and they try various remedies in order to feel better.  Sadly, they often make things worse.  The same can occur in an economy.

This is the importance of having a good constitution, and good laws, and a responsive government to take care of problems in the economy.  Too often, this is not the case.

Examples.  The standard example of self-medication in an economy is a black market.  This is basically illegal activity that people engage in to supply their basic needs.  It is a very widespread phenomenon in many nations.

Self-medication may also mean giving bribes to government officials in order to get them to take care of problems.  It can mean smuggling, lying and other behaviors that occur not because people are criminals, but because the laws are of bad quality so that people are not getting their needs met.

A friend lives in a socialist nation in which the only radio stations are controlled by the government.  In order to reach people with the message of health through nutrition, he and a few friends set up a clandestine and illegal radio station.  They had to move the antenna from hilltop to hilltop to escape detection.  This is a good example of self-medication in an economy.

 

WELFARE ADDICTION = DIABETES

 

People in some nations of the world have had so much welfare for so long that they are literally pumped up on it, and feel horrible if it is discontinued.

Welfare in an economy is like sugar.  The economy really cannot handle any more of it, and the economy is very diseased because of it.  This is very similar to a person with diabetes.

 

DEPRESSION

 

Economists often speak of economic depressions.  However, the word is used differently here.  In this article, a depression is not an economic collapse.  Instead, it is a mental aberration that can occur in any economy.

Definition.  A depression, as the word is used in this article, occurs when a significant number of people essentially withdraw from participation in the economy.

A large number of people stop spending money because they believe that the economy is weakening and they may lose their jobs, so they can’t spend money.

This is like a mental depression where a person just wants to stay home and not see anyone or do anything.  In mainstream economic terms, this is related to low consumer confidence. 

 

ANXIETY

 

The word anxiety means a foreboding or nervousness about the future.  This word is not used in classical economic analysis.  However, it is a useful term in this economic understanding.

Definition. An anxious economy is one in which many people are worried about the future.  However, unlike depression, they do not withdraw.  Instead, they act strangely and nervously.  As a result, they often make poor quality economic decisions.

For example, they might buy a large new home that they cannot really afford, or they might buy a large automobile that they don’t need, but it makes them feel better.  These are examples of anxiety in the economy.

 

ECONOMIC BRAIN FOG OR DEMENTIA

 

            Definition.  This is one cause of economic stupidity.  These conditions are becoming more and more common among human beings, and in the economy, as well.

            This occurs when people make bad economic decisions.  They spend money they do not have and they invest unwisely.  Policy makers may pass new tax laws or subsidies that are unwise.  Business leaders close factories or open them in places that are unsuitable, so they lose money.

           

            Causes.  As with the problem in the human bodies, the causes of economic brain fog or dementia are multiple.  They can be due to personal health problems such as their own inability to think clearly and remember the past.

            However, they can also be due to “ingesting” or “consuming” false academic theories such as socialism, communism, progressivism, or liberalism.  This is a major cause in Europe, for example.   This is like ingesting sugar or toxic metals.

            Another cause is an economic “nutritional deficiency”.  This is a lack of basic information needed to make wise economic decisions.  This is extremely common today.  The biased news media simply do not report on important stories that do not fit their beliefs.  This is like feeding people junk food.  It is missing vital “nutrients”.

            At times, the reporters simply don’t believe the truth that is all around them.  More commonly, they are told by their editors and publishers that certain news is not to be spread around.  As a result, people cannot make good economic decisions.  This is extremely common in many nations.

            In fact, the starvation for information is of several types, and is completely analogous to the types of nutrient deficiencies that occur when people eat junk food.  One can lack for minerals, for vitamins, for protein or for calories.  This is more detail than we have space for at this time, but the analogy between economics and human health holds true.

 

SCHIZOPHRENIA

 

This is a serious illness in a person or in an economy.

Definition.  Schizophrenia occurs in an economy when people are deluded, hallucinating, and really think things are different than they really are.  Many people are living in a made-up reality or existence that is simply not true.

This occurs more often than one may think in economies.  The reason is a mass media, usually, that convinces many people that things are different from the way they really are.

Examples.  The media may harp on how terrible is the economy, in order to swing an election toward one candidate.  The danger is that people will come to believe the media, and will act accordingly.

           

BIPOLAR DISORDER

 

            Definition.  This occurs in an economy when the feelings of many people swing wildly between excitement or mania and discouragement or depression.

              This disorder is also somewhat common in economies throughout the world.  Once again, the reason for it is often a controlled media that blows issues out of proportion, perhaps to sell newspapers, or for other reasons.

            The mass of the people read or listen to these stories and find themselves elated and excited one week or month, followed by a period of doom and gloom for a while when the media releases a negative story and usually blows it out of proportion.

            These “mood swings” are very debilitating for an economy because they cause ups and downs in spending that are difficult for retail and other businesses to plan for and handle.  The purpose in exposing these mental economic problems is to show how important the media is for an economy.

 

XI. ECONOMIC TRAUMAS

 

RAPE

 

            Definition.  Rape in an economy occurs when another nation or society takes resources, people, supplies, or other things by force or by the threat of force.  Economic rape is actually quite common on earth.  Here are examples:

Imperialism.  This is like a one-time horrendous rape that leaves one half dead.  In this case, one nation mobilizes its military and simply takes over the territory and resources of another nation.

For example, Adolf Hitler marched his army into Poland in 1939 and took over.  Vladimir Putin, leader of Russia, recently marched his army into a part of The Ukraine and took over.

            Leftists sometimes accuse the United States of imperialism, but this is not true.  If the United States intervenes in a nation, they don’t stay there.  They put in a better government and they leave.  They also do not rape the nation of its resources, as imperialist nations do.

            Colonialism = rape marriage.  A somewhat similar situation is colonialism.  This may be called a rape marriage.  This is also when one nation, such as Great Britain or France, marches into a foreign nation and announces that they now partners in trade and other things.  However, the stronger nation is the ruler.  They impose stiff taxes, and may steal any resources they wish from their colonies.

America, for example, was a British colony for several hundred years until the people there got tired of it and broke free.  Colonialism has thankfully declined on earth.  It has been replaced with protectorates, which are more humane.

Genocide = rape to death.  This is when one nation or society comes in and decimates another society.  They take whatever they want and they destroy everything else.

Ganging up on one nation = gang rape.  At times, several nations will all invade one nation at the same time, stealing and destroying the economy and perhaps the people of the nation.

The analogy with human rape holds very well.  There are warning rapes, repeat rapes, and others.  For details about this subject, read Rape.

 

Balancing military and civilian economies.  This is a big subject.  However, the only way to prevent rape is to protect the nation and its infrastructure.  Every economy must strike a balance between the military economy and the civilian economy.

            Sympathetic and parasympathetic nervous systems.  This important economic idea is identical to the balance that our bodies have to make every moment of every day.  The body has:

1. A military economy – governed by the sympathetic or fight-or-flight nervous system.

2. A civilian economy - governed by the parasympathetic nervous system.  It is concerned with maintaining and building up the body.  

            Health depends upon making the right balance of these two, in both an economy and in the body.

 

NATURAL or MAN-MADE DISASTERS

 

              Definition of a natural disaster.  These include a serious earthquake, flood, fire, tsunami, hurricane, typhoon, wind storm, tornado, rain storm or snow storm, or a serious fatal epidemic of a disease such as the plague or a plant disease that destroys much of a nation’s food supply. 

 

            Definition of a man-made disaster.  These include meltdown of a nuclear power plant, explosion at a large factory or gas refinery, failure of a critical roadway or bridge, or a toxic spill that affects a large area and forces evacuation.

 

            Any of these is like a trauma to a body.  The degree of harm depends on the severity, where it hits, and how vulnerable is the economy.

            The reality of traumas in any nation or society is a very important reason to have a balanced, diversified and strong economy.  These “smart” economies are much more resistant to traumas than are weak, thin, or unbalanced economies.

For example, if a nation’s economy is built on tourism, a powerful storm could destroy most of the hotels and the economy would be decimated.  However, if the economy is diversified, then a powerful storm would have much less impact on the totality of the nation’s economy.

The reality of traumas is also a reason why nations and societies should build their infrastructure to withstand traumas.  

 

References

 

Ellis, S. and Brown, M., Hacking Growth, 2017

Ellis, S., Lean Startup Marketing, 2012.

 

 

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