A medium of exchange is a tool of efficiency used in trade.
Money is the name of the medium of exchange. Money represents the value of one’s production or good as determined by trade.
Therefore, money is literally made when goods are produced.
Above a primitive level of production, additional production can only take place if there is past production.
In other words, money can only be made if there has been money already made.
A producer would be defined as an individual who is making money by producing goods.
Once a producer makes money, a choice must be made; the money can either be spent or invested.
If a producer spends their goods on a good that does not corrupt over time or lose its value over time, (possibly has intrinsic value like a commodity),
then that good is in essence a type of holding institution, and for our logic sake, we will call it savings.
Spent money is when money is used to acquire a good that does not hold its value or loses its value over time.
Savings is also when money is kept in ones possession over time and not spent for a purpose other than spending.
Investment is saved money used with the intent to produce more goods.
A lending/holding institution is an organization that uses saved money as investments.
Saving in a lending institution is the same as investing. Holding money that will be invested is the same as investing. Therefore, assuming that all
savings are saved in a lending institution, or held onto for a future investment, saving is the same thing as investing.
When money is invested properly, it is used to create additional money through additional production. That additional money is defined the same as earned money as investing is a type of good. Therefore, money earned from investments requires the same choice as the original money which is to either save/invest or spend.
When money is spent, it can no longer be invested because it is literally gone.
If one spends all the money one makes, then one literally has no investments.
Without investment, additional production beyond current production is in many cases impossible.
If there is no additional production beyond current production then there is literally no growth.
If there is no growth there is no progress.
If there is no progress, then there is damnation.
Damnation is defined as the cessation of progression.
If a leader or any individual, group, or entity encourages spending instead of investing, then they are encouraging damnation.
In the tradition of ironic names, those who encourage spending over investing on the political are called “Progressives.”
Therefore, in a deeper sense then the word itself, a progressive is someone who wants to stop progress.
An additional ways to create damnation would be to stop producers from producing.
Since production leads to utility by the making of money, positive and negative incentives are needed to stop production.
Taxes create a dead weight loss in making money. The higher the tax, the greater the loss, the higher the loss, the less utility is derived from
production. If the tax is high enough, then it would be irrational to continue to produce and production would cease. Therefore, taxes are an incentive not to produce.
An entitlement program is a program that takes money from those producing and gives it to those who are not producing. Therefore, those who would normally have no utility from not producing, suddenly have utility from not producing. The utility from not producing makes it rational not to produce. Therefore entitlements are a strong incentive not to produce.
The Social Security program literally takes a percentage of one’s paycheck starting with the first paycheck with the promise to give monthly checks in the future at the age of retirement. There is therefore a strong incentive for individuals NOT to save for the long term as the money is taken with the intent of being a long term investment.
Long term savings are critical to an economy as they can be counted on to remain in savings and not be spent. Also, the long run is often the only thing individuals want to really save for. Holding onto one’s earnings for a few months to buy a car or couch is not savings, it is still spending. On top of the incentive, the social security money is not saved; it is spent, and therefore it is the same as a tax. Taxes are a incentive not to produce.
Equity is defined as the total ownership or investment one has in an entity of any sort.
When one spends money on real estate, generally the real estate is not going to lose its value and therefore is the same as saving. Since we define savings as investing, one is investing when they spend their money on real estate.
Equity in real estate comes from either additional value gained from a higher market price than the purchase price, or by how much personal money one has invested in the real estate. The national mortgage interest tax write-off allows one to write-off the money one spends on the interest for their real estate loan. This literally stops individuals from investing more money in their real estate and additionally creates an incentive to finance their real estate which not only makes it not their real estate, but increases the prices of real estate on the market as a whole. Therefore, mortgage interest tax write-offs are an incentive not to invest but are incentives to not invest in the real estate one owns. Therefore, mortgage interest tax write-off’s are a strong incentive to not invest which of course leads to increased damnation.
A discount rate is a rate which measures how much one values the future relative to the present. A 100% discount rate means one does not care about the future whatsoever and will only act for the immediate present; meaning a promise of future utility means absolutely nothing. A 0% discount rate means that an individual values tomorrow just as much as today; meaning a promise of future utility is the same as receiving the utility in the present.
An interest rate is a rate which measures the amount of risk. The more risky a transaction, the higher the interest rate is as well as the possible return
Risk and discount rates often go hand in hand. Someone who lives only in the moment will be willing to accept more risk because the future means less. Those who invest in more risky investments are more likely to lose their investments altogether.
Those with a lower discount rate would derive more utility from long term investments. Therefore, any program that would raise an individual’s discount rate would directly decrease the amount of investment and increase the amount of spending for that same individual.
Scientifically, when an individual has a strong and pressing addiction, they lose sight of the future and yearn more for a fix in the present which
directly increases their discount rate significantly.
Therefore, any war, agency, policy, music, movie, culture that promotes or increases the supply or decreases the cost of illicit drugs increases spending and decreases savings.
The basis of almost all classical religion is to look to the future and to heaven. As a result, a truth bound religion decreases individual discount rates
and helps one to view the future with excitement and increases a desire to prepare for the future. Therefore any program that limits, opposes or restrains religion creates an incentive against investment.
Capitalism is defined as a system in which individuals are free to produce, spend, save and invest as one chooses so long as it does no harm to others. If individuals are not allowed to produce, spend, save and invest through the use of destructive or threatened force or negative incentives or disincentives, then capitalism will fail. Production and growth are fundamental parts of capitalism.
In order for Capitalism to not fail, a simple and relevant law must govern in which all individuals are equal under the law. The law must not be ambiguous, subject to rapid change or make exceptions for any individual or group. Laws must NOT be put into place that make transactions costly or add barriers or obstacles to production.
In order to override capitalism, an individual would have to rise above the law. Any law that would give one individual power over another would cause capitalism to fail.
Any law, individual, or group that is placed to govern, above the law, another individual or group would create barriers to production and capitalism could not exist. A regulator, by definition, is an individual or group that is placed specifically to govern another individual or group above the law by making the law. Therefore a regulator is a barrier to production and is a cancer to capitalism.
Any law or action that allows for one individual, group, or entity to seize the investments of another individual, group, or entity would also create a
strong incentive not to invest.
In summary, the only reason any individual, group, or entity would want capitalism to fail, or to stop progression, would be because they are a rational being and somehow, they think it would benefit themselves more than it would cost them. Progressive programs, those that stop progress, are strictly calculated as these principles are well known!