We Can’t Recreate The Garden Of Eden.

English: Adam & Eve in garden of Eden Русский:...

English: Adam & Eve in garden of Eden Русский:  (Photo credit: Wikipedia)

The story of Adam and Eve is very instructive even if you don’t believe in God or the bible. If you remember, God created the garden of Eden for Adam and Eve to live in. It was a world of abundance where every need was met. The devil tempted man by saying “…you will surely not die. For God knows that the day you eat of it your eyes will be opened and you will be like God…”. The devil tempted man by saying “you will be like God”. When man sinned, God banished him from the world of abundance and placed him in the world of scarcity, decreeing, “…Cursed is the ground for your sake; in toil you shall eat of it….both thorns and thistles it shall bring forth for you….In the sweat of your face you shall eat bread….”. You don’t have to believe in God to understand that we live in a world of scarcity instead of a world of abundance. We all know that we must first produce, by the sweat of our brow, before we can consume. This should be obvious to everyone, everyone  except for people in positions of  power with big egos, like Ben Bernanke and his ilk, who think it’s in their power to create a world of abundance by counterfeiting money. It’s almost as if the devil is whispering in his ear, “you can be like God”. You don’t have to believe the bible to know where this leads. The Austrian Business Cycle Theory tells us that it can’t work. But the truth about the world of scarcity is easier to understand, as revealed in those biblical verses, than it is by trying to glean it from reading, “The Theory of Money and Credit”, by Ludwig von Mises or, “Prices and Production” by F. A. Hayek. These two books explain the complicated reasoning of why low interest rates and counterfeiting money can’t produce abundance in a world ruled by scarcity.

This article titled, “Send In The Clowns or How Unsound Money Gives Us Weak Leadership“, by Patrick Barron at patrickbaron.blogspot.com,  is a great explanation of our discussion concerning the real world of scarcity we live in. Here are a few quotes.

“….The effect of fiat money’s “collective corruption“, a term coined by Professor Thorsten Polleit, is to elevate society’s time preference.  Societal values that reflect the way in which man must act to succeed in the real world are eroded over time.  The real world requires savings in order for society to progress.  Savings takes time.  Keynes’ emphasis on aggregate demand would have us believe that consumption is the path to progress.  If this is true, why wait?  Consume now.  Since the central bank can funnel money to government in almost unlimited amounts, it appears that there is no reason to wait….”

“…..Domestically, citizens in an unsound money economy expect the government to “do something” about helping them get a college education, the house of their dreams, free prescription drugs, and now even free healthcare.  If you can dream it, government should provide it!  And remember, we need not worry about mundane matters like cost and debt, because all this will take care of itself through the wonders of an expanding economy, stimulated to greater production by government spending of fiat money….”

“…..Unsound money is a blatant attack on economic reality and leads inevitably to the kind of leaders who are best suited for operating in this environment; i.e., fast-talking, glib charlatans with movie-star good looks and low academic, military, and business achievement.  We want our leaders to entertain us in good times, placate us in bad times (feel our pain), and tell us that we are not responsible for ourselves…that government will take care of us via social programs that can only be funded by unlimited amounts of unsound money.  Until this tyranny of unsound money is removed as a tool of government, we can expect leaders who are as weak and debased as the currency they print…..”

Related article, “The Role of interest Rates in a Market Economy”, at austrianaddict.com

Related article, “Federal Reserve Policy Makers have An Incestuous Intellectual Relationship With Each Other“, at austrianaddict.com

Explore posts in the same categories: Econ. 201

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