Nature’s Basic Law of Economics

Nature’s Basic Law of Economics states that there are only two kinds of resources—people resources and natural resources.  All goods and services are produced when people resources work with natural resources.  As long as these two resources are available, there is no reason for not producing the goods and services needed and wanted by the people of the world.

Money should be used as a medium of exchange to facilitate the exchange of people’s productivity.  If there is a shortage of money, governments have the responsibility to supply the money necessary.

         There is no excuse for a depression or a recession unless some natural disaster renders the combination of people resources and natural resources unworkable.

It is not a natural disaster that afflicts the world.  The disaster is the result of the abysmal ignorance of government officials concerning Nature’s Basic Law of Economics.  That disaster has names such as “recession,” “inflation,” “welfare,” “unemployment,” “crime,” and “poverty.”  Bringing together people resources and natural resources in full employment at quality wages is the first task of government officials—when they learn Nature’s Basic Law of Economics.  As learns learn this law, the whole world will benefit.

          People talk of everything in terms of money, when they should be talking in terms of people resources and natural resources.

Instead of asking how much money a thing will cost, the question should be, how many people and how much in natural resources will be required to prude the good and service?  To think of money only as a commodity instead of as a medium of exchange is to make money a barrier to economic prosperity.  Money should be used to exchange the goods and services people produce, not impede the flow of economic life.

One often hears, “I’m tired of the Government spending my tax dollars on welfare programs and space flights, etc.”  A person making such a statement probably does not realize that we live in an interdependent world.  Such a statement reflects the philosophy of money as a commodity, not money as a medium of exchange.   A welfare recipient, for example, serves a useful economic purpose—providing employment for “bureaucrats” and spending power of for the “bureaucrats” and the welfare recipient.  The recipient of government money from space programs, to use a parallel, is also providing the community with the power to exchange goods and services.  Instead of the complaint that the government makes to many dollars available, the complaint should be that the government makes too few dollars available.


There is not a science of economics because economists do not understand sixth grade arithmetic and Nature’s Basic Law of Economics.  The economy is a result of the balance or imbalance between people resources and natural resources.

Apply Nature’s Basic Law of Economics and sixth-grade arithmetic.  One sees: GNP of $6,000,000,000,000 (six trillion dollars).

1% of $6,000,000,000,000 + 60 billion dollars.

1% rise in the price of goods and services = decrease in the money supply by 60 billion dollars.

10% inflation = goods and services costing 600 billion dollars more; 600 billion dollar decrease in the money supply.

Result: 600 billion dollars worth of goods and services cannot be exchanged.  Further results: Unemployment and decline in the GNP.

            To maintain balance, the government must increase the money supply: 1% increase in inflation of a $6,000,000,000,000 (six trillion dollar) GNP requires a 60 billion dollar increase in the money supply or the equivalent amount required to exchange 60 billion dollars of goods and services.


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