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Please, Help Me Understand Economics!

picture of world economics

This past week, in an assembly of all the university students and faculty, an administrator explained changes forthcoming in the basic core courses [1] that all of our students must take at BJU. One of the new courses that will be required for graduation is Foundations of Economics. With all the difficulties people in today's world are having with debt, this should be a great course to give our young people information that could help them avoid personal financial disaster.

I find the world's economy far more mystifying than personal finances. The following picture from despair.com [2]almost makes sense to me.

picture of funny picture

Today I'm posting some cartoons, informative pictures, and funny pictures on the subject of economics and the economy.

Many individuals and families are heavily in debt because, through credit, they have spent more than they earn. These personal financial crises are part of the cause for the current recession.

picture of cartoon

I'm not sure why doing the same unwise practice is supposed to work when the government does it. Here's a chart I found of the federal budget — where the government's money comes from and where it's going. You can click on it for a larger view.

picture of federal budget [3]

If the president had ever run a business where he had to meet payroll and bill payment deadlines, he might have a better understanding of some of the realities that seem to be irrealities to him.

picture of picture with caption

The Chicago Tribune published an editorial cartoon in 1934 that sounds as if it could have been written about what's going on today, almost in detail! You can click on it for a larger view.

picture of Chicago Tribune editorial cartoon 1934 [4]

It's rather ironic that that cartoon was in a Chicago paper....

The Obamacare debate is far from over, and if government health care is rammed through, against the will of the majority of Americans, it brings the potential for far more national economic woes and debt.

picture of cartoon

So far we are not experiencing large-scale inflation as we have in the past. However, I do hear the word coming up more and more often, and it seems like a distinctly possible result of our present economy. In my post What's a Billion? [5], I talked about how bad inflation became in Germany between the two world wars. Here's another aspect of that that makes me wonder how far off this might be for us.

picture of hyperinflation

I just hope people will be careful with their word choices in front of our nation's leaders.

picture of bumper sticker

I know that our government's overspending did not begin with Obama — George W. Bush and the congress during his terms spent way more than they should have, helping to create the economic woes of the "October Surprise" of 2008.

picture of cartoon

The people at Spendaholics Anonymous know that the road to true recovery is admitting that you have a problem, not shifting the blame while you're on your own federal spending spree. The deficit and our national debt are increasing exponentially with Obama and the current congress.

picture of t-shirt

During the Reagan years we heard a lot about "trickle down economics" — the idea that when the wealthy have more money through lower taxes, they use it to start businesses that in turn provide jobs and thereby actually eventually bring in more money in taxes than would have come in by taxing the wealthy in the first place. Here's a flow chart of trickle down economics as it's currently happening in Washington DC.

picture of cartoon

Another bumper sticker states it differently.

picture of bumper sticker

When Ronald Reagan was president, we also had Bob Hope and Johnny Cash.

picture of Reagan et al

Now with Obama, we have neither Hope nor Cash.

It's no secret that unemployment is a huge problem right now, and it doesn't look as if it will get much better any time soon, all assurances to the contrary. Here's a sad story of one unemployed person.

picture of cartoon

I keep hearing of other countries whose governments are deep in debt and in financial difficulties. Who in the world (literally) owns all this debt?! How long can this kind of national economy and world economy go on?

Could someone please tell me what I'm missing in my understanding of economics?

quotation...

"No one can be so secure that calamity cannot take everything he has." - Drew Conley

=^..^= =^..^=
Rob

When the young electrician was broke, he wired for money.