We all know the story of Jack and the beanstalk and how he traded an old cow that wouldn’t produce any milk anymore for a “worthless” bean. The bean, as you recall, would grow overnight to reach the sky overnight. In this story Jack’s mom wanted currency for the cow and saw this promise of a beanstalk immediately as worthless. Yet was it really?
Here’s a version I found on a great YouTube site for children to remind you of the story.
Even ignoring the heavily endorsed offers of gold by hard work and the supposed ethical value of the story if the beanstalk only ever produced beans and there was no giant would this bean now be worthless? I’d say “No.” The fact that the cow no longer produced milk meant it was only valuable for a pet or for meat. Once the cow was eaten it would then be gone and could no longer be exchanged for anything.
By trading it for gold or other currency the currency would be worth something but only if it could again be traded for something tangible. Once traded the tangible item(s) would then be consumed and the value of the cow is now again reduced to zero. The value of the consumed items is also thus reduced to zero when it is consumed.
However, had Jack had taken the bean and grew it as he did then harvested the beans it produced and consumed some, maybe traded some others, and planted some to grow more large bean plants the value of the beans would increase. Having the higher value and greater productivity Jack and the Beanstalk would not have to work as hard. Anytime you can increase the value of an item it’s to the advantage of all involved. This is simple economics.
Now you may feel this is too simple a plan and that it could never work in modern day societies but I disagree. The alleged debts all these countries are going to default on eventually is purely fictitious. There never was any actual money lent by anyone. No bank had anything of value to provide the people who “borrowed” the money and to replace the currency for trade in a region you may call your country is simple. You just do it. It’s been done consistently throughout history and the only people who lose by it are the fraudulent bankers.
So I say everyone should default on their loans. Greece, Portugal, Ireland, Canada, you, everyone so the system is forced to collapse because it can never be paid in full anyways. The only way to resolve the debts is to create more debt and digging deeper into a pit never gets anyone out so I say let’s stop digging and let’s start utilizing our resources correctly instead of working harder. The fairy tale is wrong, working harder and being a slave never makes anyone happy. Working smarter and freely utilizing your resources always makes everyone happier.
Peace and Prosperity,
Rob
