Little_Mavis' rants and musings

Things I don’t understand #1


I’m beginning to think I must be far more intellectually limited than I previously realised. There is so much I  just don’t understand.

The first issue that puzzles me at the moment is the “economic crisis”. I realise that there are more people around than (say) 10 years ago, although we have coped quite successfully with population increase in the past. I also realise (unlike many) that natural resources are ultimately diminishing, but again, that doesn’t seem to be where the problem lies. So let me work through this.

We still have the same amount of money (slightly more since we seem to have printed more) We have a few more people, but suddenly the country can’t afford stuff, and as a consequence lots of us can’t afford stuff.

I know why I can’t. I left a reasonably well-paid job and have taken a far less stressful but worse paid one. I know why other people who are in poorly paid jobs can’t. They have had reductions in the benefits which they used to top up income from even more poorly paid jobs. There are also the people who have been made redundant, either through public sector job cuts or through reduction in profits of private companies because all the rest of us can’t afford to buy things now.

What I really want to know is WHERE HAS ALL THE MONEY GONE? It was there before; it doesn’t seem to have been destroyed. Where is it?

I don’t believe it’s all being drunk, smoked and gambled by the poor. Admittedly, I have some (diminishing) savings that were put away for my old age, and although it now looks as if I may need that more than ever, there may not actually be much left by then but that’s not enough to explain the current crisis. So people WHO HAS IT? And why can’t we get it back?

I know I’m over-simplifying, it’s one of my vices but the question is still out there.


Author: littlemavis

Retired teacher. (also Information Scientist, Export Sales Assistant, Sales Administrator, Computer Programmer, Software Support Specialist) Worked in Sixth Form college and recently as support in a primary school.

6 thoughts on “Things I don’t understand #1

  1. When you own all the wealth ,it becomes worth less even worthless,Has it’s real value is only ever what people can or willing to pay for it,So slaves can not afford food water shelter,has all the money is stashed away,new money has to be printed but this also soon becomes worth less,Machines make make people redundant but people without real resources also make machine redundant

    • I don’t think the machines themselves are the problem. If the machines are available to lighten the load we should be able to pay people more for doing less.

  2. There’s an interesting book called “The Crash Course” that essentially purports to answer this question. I can’t sum it up as I don’t fully understand it myself, but it’s something about the fact that our savings & loan / bank structure is unsustainable. The numbers don’t add up.

    That said, there’s been a huge slide in standard of living for many people and a widening gap between rich and poor. I honestly don’t know what the very rich are doing with all that money. I do know that in the US, companies are sitting on record high cash piles, and aren’t spending it nor giving it away as dividends. It’s a reaction based in fear of re-collapse, but it keeps the economy stymied and the poor stay jobless and poorer.

    • This is what I suspect. It’s still there but hoarded by fewer & fewer people. I also think people were buying things they couldn’t afford in an increasing spiral. Encouraging us to spend our way out doesn’t seep sensible either. I think ultimately the only answer is for us to accept a simpler, less consumer-based way of life. Sadly, some people can’t reduce consumption much more than they already have. It’s time for the over-consumers (5 cars, 4 homes, £3000 parties) to reduce their consumption & release their reserves to the rest of us.

      • Spending our way out is not the answer,giving true values to work & less to profit is,the money only has to circulate to generate,But when Taxes & tariffs allow 10% to own over 90% then trouble ahead,look into the Industrial revolution & how that re-distributed much of the wealth,because of greater structural finances in place,When few have owned most all economises have stifled & stopped, Mayans, Egyptians ,Greeks,Romans British Empires all fell to the greed of arrogance
        Machines only exist to increase profitability if 90% of people can not buy, machines have no purpose

  3. PS look at it like a game of monopoly,you have a set amount of money in the game,you mortgage build & charge rent,so if you win the game all those assets are only worth what the other players can pay end of the game,in real life the game doesn’t end so open another box of monopoly & use the money from that but sure enough soon you are back to the end of the game.but the owner still has to maintain all those properties utilities stations,but all on the money available to all the other players,now who really is the one that is bankrupt,why do we see companies going belly up,begins to sound very much like the economy we actually live in doesn’t it

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