Saturday, October 23, 2010

The Well-Oiled Bottomless Pit Machine

My friend and I had two different theories regarding the cause, analysis, and evaluation of the state of our economy. In this innovative TFAT blog post, we ask you to read our different intellectual theories, and choose the one you support. If in fact you don't agree with any, comment your own theory. You can also guess which one I wrote, and I will announce if you get it right or not next week.
Two different people, two different ideas - one topic: 
Which idea do you support?

To answer this question, you can either comment, or enter the poll on the top right of the page!

Idea #1: “The Well-Oiled Machine” Theory (An Intellectual Evaluation):
Money goes in a cycle which I like to call the cycle of greed. Money moves in a way which it acts as if it is borrowed then lent to the next person in the cycle, but there are breaks in this cycle, as a matter of fact there are two breaks: inflation, and recession.
Inflation is when too much money enters the cycle and recession is when too much money leaves the cycle, and both are bad. First off, the cycle is a method of each human borrowing money from another and then lending it to another being. For example, when a farmer sells his cow to another man for five hundred dollars, that farmer will use that money for another necessity that he and his family will need such as clothing or shelter. The cycle should run like a well-oiled machine. This machine could be easily broken if too much oil is added or too little oil is added. Money should be used only on necessities.
When breaking a cycle, everything becomes corrupt. If that farmer uses the money that he earned from selling a necessity on something that is not a necessity, then he has wasted his money. Using money on entertainment is an example wasting money. That farmer has taken money out of the necessity cycle, which is the most important for survival, and added the money into funds that are not important for survival. Therefore, he has wasted his money. Yet, not only one man can damage a cycle. The more people who waste their money on non-survival gains, the more money is lost, which leads to a recession. Too much money leaves the cycle and now people will be either in dept or a deflation of money will occur.
A deflation is a very rare occasion, the price of money will become more than what it really is, i.e., a U.S. one dollar bill could become the price of twelve dollars.The deflation will make people restart barter trading. Money will be so hard to get, that people will start to trade necessities with other necessities in the strive for survival. On the other hand if too much oil is added to the well-oiled machine then another situation occurs.
When too much money is added to the cycle, inflation of money occurs. If the farmer sold his cow for an over-priced amount, money is added to the cycle. If this keeps occurring then the price of money is not as much as it was before. People will have so much of it that they can spend that money easily on necessities, after this inflation has occurred and has been in effect for years, the price of money will drop dramatically. The price of a U.S. Dollar could become the price of twelve cents.
In conclusion, humans as a group should use their money earned only on necessities, unless too much money enters the cycle. In this case, people should spend money on non-necessity funds. 
There should be an equal balance of intake, release, and movement in this well-oiled machine.


Idea #2: “The Escape of the Bottomless Pit” Theory (An Intellectual Analysis):
When people say, “Money grows on trees”, I ask them, “Are those trees made of pennies”? Frugality is the epitome of absurdity. Our society has become illogically dependent on our economy, that we have sadly become the cause of it’s downfall.
We are constantly in the bottomless pit of blaming politicians and government officials for the creation of this recession. However, if we don’t understand that we are the creator ourselves, then we will never - ever get ourselves out of this pit. People have become infested by the societal creation of conspiracies surrounding everything on Earth. If you are unemployed, you should thank your fellow citizens for their frugality. The reason people are suffering from this recession is because they are becoming frugal every moment. If every person was to go outside and spend all the money they had left right now, the economy would boost over the horizon. As small businesses would receive this money, they would feel more needy to hire new employees. These employees would raise even more money, creating a “Utopian economy”. 
Therefore, the first step to getting out of a bottomless pit is to catch a hold. By grasping a hold of this theory, people will stop continuing to fall. After the theory sets into there brains, people will have to start climbing up. This period of climbing will consist of these steps: First, spending money. Second, employers hiring because of the huge clientele. Third, employees will raise money, and continue to spend it.
Money is created to spend. If it was created to save, then God would have probably made us live forever. When you die, only two things go to the grave with you: your knowledge, and the wealth that you spend in this world. The money you save doesn’t go with you, it stays behind for your generations to enjoy. True, you should spend money on good things like charities and funds - but what if you are the one who is in need of the funds?
In order to be able to escape from the bottomless pit of a horrible economy, we should stop being so frugal, and be more independent in a way where we help the economy, not destruct it by depending on it to run itself.
It may be tough to understand in the beginning, but that is only because our minds are infected with being frugal to save money. Just ask yourself this, “If I don’t have money, then how will I spend it?” In order to save money, one has to make it. And when you are in a horrible economy like today, you won’t make it unless you spend the money you have. That’s the simplest way to put it.
A utopia is impossible, but a Utopian economy?- only if we grow the right money tree.
Which theory do YOU support? Comment and/or answer the poll at the top right of the page!

You tell me.
-That's the TFAT.


  1. I share view points with both authors.
    I agree with the first person on the fact that we should spend most of our money on necessities. BUT, I also believe in spending a little here and there on something enjoyable. If you only spend money on the things you need when will you ever treat yourself? or get something nice? or have FUN?
    I mostly agree with the second author, though. We need to stop blaming out government for all of the troubles we're in. It's not entirely their fault. Our ancestors and ourselves collectively are to blame for our economic downfall. But, we have to stop playing the blame game. We need to stop calling names, step up, and take responsibility for our predicament and change it. If we don't do those things now nothing will ever change!
    And I do believe there can be a "Utopian economy." We just have to start planting and nurturing the right seed, now.

  2. I agree with the second theory. And I also believe it has been written by the creator of the blog.

    The reason I agree is because I don't think there is a problem with equality of intake, movement, and release. I think there is a problem with each of them on their own. T

    here is a problem with the inequality of these three things, which the second theory most accurately describes.

  3. I agree with the second, the first one i feel has flaws, i feel that it is blaming economic problems on the buying of non neccesities, which i think is dumb because the providers of those goods will then use the money for neccessities. Anyways, kudos to both authors, well done.

  4. I just saw a clip on abc news about how the government just printed 6 billion dollars of "virtual" money. That could definitely cause inflation. What do you think about that? Try to find the segment on I might be able to get it. If I remember.

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