KINESIAN ECONOMICS
ILLUSTRATED
(Not to be confused with Keynesian Economics)
Kinesian Economics is based on the fact that work is the primary source of economic wealth. It also is based
on the recently discovered fact that that government can create very little wealth.
Below is a diagram showing how wealth is created, consumed, and destroyed in the normal operation of an
economy.
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THE ECONOMY IN ACTION |
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WORK MATRIX:
NEW WEALTH COMES
FROM WORK DONE. |
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INCOME PRODUCED
FROM WORK DONE |
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PRODUCTS AND
SERVICES MADE |
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FACTORS OF
PRODUCTION |
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TAXES:
GOVERNMENT
SPENDING |
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PURCHASE OF
PRODUCTS
AND SERVICES |
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SALES OF
OF PRODUCTS
AND SERVICES |
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Unproductive |
Environmental
activities are
economically
unproductive. |
Productive |
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Unproductive |
Environmental
activities are
economically
unproductive. |
Productive |
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Unproductive |
Environmental
activities are
economically
unproductive. |
Productive |
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The economy
grows when
more wealth is
produced than
is consumed
and destroyed.
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WEALTH
DESTROYED |
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WEALTH
CONSUMED |
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WEALTH
CONSUMED |
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Education
and Roads |
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Police,
Fire |
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Regenerative |
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Normal |
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Regenerative |
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Normal |
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PRODUCTIVITY
MATRIX |
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>2yr DELAY |
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ENERGY AND
AGRICULTURE:
NEW WEALTH
POTENTIAL |
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INFLUENCING FACTORS
The following factors influence the operation of the economy:
WORK MULTIPLICATION
Multiplication production produces far more wealth than it consumes.
- Agriculture (produces food to be converted into work)
- Energy production (multiplies the useful work of a worker)
REGENERATIVE PRODUCTS AND WORK
Regenerative production produces far more wealth than it consumes.
- Production of essentials making workers able to work (food, clothing, shelter, transportation, and medicine)
- Education activities that produce new workers (delayed to complete coursework)
- Road construction that serves industries (delayed to complete construction)
- Making the tools of production
- Producing raw materials for production
- Recycling discarded products into raw materials for production
- Making parts for products
- Repairing broken machines or products
- Advertising to sell useful products
NORMAL PRODUCTIVE WORK ACTIVITIES
Normal production produces about as much wealth as it consumes.
- Making most useful products that are demanded on the open market
- Transporting useful products demanded on the open market to points of sale
- Selling useful products demanded on the open market
- Environmental products that are actually useful
- Art used in advertising
MARGINALLY PRODUCTIVE WORK ACTIVITIES
Marginal production produces slightly less wealth than it consumes, but without it, very little wealth could be produced.
- National defense
- Police protection
- Fire and emergency services
- Crime investigation, justice and correction
- Traffic control
- Health and sanitation industries
ACTIVITIES THAT CONSUME WEALTH
Consumptive activity produces far less wealth than it consumes.
- Useless products (products without actual uses)
- All consumption producing very little new wealth
- Toys and diversions
- All sports
- All fine arts and literary arts
- All forms of entertainment
- All forms of recreation
- Monuments, memorials, and museums
- Producing products that do not sell on the open market
- The legislative process
- Most environmental products
- Advertising to sell products that consume or destroy wealth
ACTIVITIES THAT DESTROY WEALTH
Destructive activity produces no wealth, and destroys all wealth it consumes.
- Crime (especially theft)
- Gambling
- Diseases
- Government spending on nonessentials
- Environmental activity that does not produce a salable product
- Taxation of more than 10 percent of personal income
- Bureaucracy and paperwork
- Government regulations that cost money to obey
- Giving money to people who refuse to work
- Government subsidizing any activities that consume or destroy wealth
- Government-sponsored sports
- Government-sponsored arts
- Government-sponsored entertainment
- Government-sponsored recreation
- Education activities that do not lead to employment
- Government-owned stadiums, arenas, sports fields, convention centers, theaters, and auditoriums
- Work done solely to satisfy government requirements
- Paying workers more wealth than they produce (destroys wealth equal to the difference)
- Breaking or damaging property
- Traffic accidents
- Vandalism and destructions of property
- Fires and natural disasters
- Fraud
- Shoddy merchandise
- Political campaigns
- Business failures (destroy both wealth and wealth production)
- Minimum wage, living wage, and price control laws (destroy both wealth and wealth production)
- Monopoly powers, including patents and copyrights (destroy both wealth and wealth production)
- Forced obsolescence of products (e.g. DTV changeover, Microsoft upgrades)
- Government seizures for unpaid taxes
- Labor union rules that cost money
- Welfare rules
- Procedures to verify that the law or work rules are obeyed
- Immigration laws
- Homeland Security
- All attempts to get something for nothing
- Celebrity and sports figure salaries (no productive work done)
- Attempts to stimulate the economy (canceled out by high taxes)
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HOW ALL TAXES
COMPOUND
ONTO WORKERS |
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All taxes are paid by workers, even though they are levied against businesses. This is
because businesses do not create any wealth without the work done by the workers. |
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AMOUNT ORIGINALLY AVAILABLE
TO PAY ONE WORKER'S SALARY |
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BUSINESS TAXES
REDUCE MONEY
TO PAY SALARY |
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SALARY BUDGETED |
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PAYROLL TAXES
REDUCE MONEY
TO PAY SALARY |
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NOMINAL SALARY |
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PERSONAL TAXES
REDUCE
USABLE INCOME |
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RECEIVED SALARY |
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BUSINESS TAXES
INCREASE PRICES
OF PRODUCTS |
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TAX REVENUE |
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ACTUAL
INCOME
OF
WORKER |
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LINKS:
- KINESIAN ECONOMICS
- WEALTH vs MONEY
- THE LIVING WAGE SCAM
- ONLY WORKERS PAY TAXES
- THE MISSING EQUATIONS
- STUPID GOVERNMENT TRICKS
- Home
