So today I was wanting to understand about the current US economy and decided to listen to Ann Barnhardt’s videos. Now money is a token which represents something else. Belloc said capital is simply a man’s labour in another form, which makes sense, and Ann says something similar: “Money is a fungible proxy for man’s ability to reason, labour, create and produce.” We could state that “as a thing which represents man’s labour etc, which can be used in exchanges.”
She points out that if we assume an average hourly wage of $20/hour, then the US economy (GDP), currently at $17.95 Trillion Per Annum, can be expressed as 897.5 Billion man hours Per Annum. I agree that this is a better way to think of the GDP, because it is more human.
Here she points out why the gold standard will not solve current economic problems and it’s well worth watching:
From about 3:10, she explains why charging *reasonable* interest is morally required, which is in opposition to St Thomas Aquinas, which I am trying to understand.
Zippy Catholic has a list of FAQs about usury here:
The place I used to turn to, for understanding the moral aspects of economics, and for an understanding of usury, was Belloc’s essay “Economics for Helen,” which now no longer seems to be online, unfortunately, although you can buy it in book form. In this essay, Belloc called usury, “the charging of interest on an *unproductive* loan,” meaning a loan for anything other than a business or investing venture.
At any rate, sorting through these various contradictions is hurting my brain, but I still think it’s important to understand. At the very least, our borrowings should be minimal, and probably only for a mortgage.
The big problem, regardless of what we plebs do, is that the banks lend money that is unsecured. Just waiting now, for the inevitable collapse…