KINESIAN ECONOMICS

DON'T CONFUSE KINESIAN ECONOMICS
WITH KEYNESIAN ECONOMICS

Keynesian (KEEN-zee-an - 3 syllables) Economics is the theory of the economy which is based on government being a major source of wealth. It was named after John Maynard Keynes, and has largely been disproved through counterexample.

Kinesian (Kin-EEZ-ee-an - 4 syllables) Economics is the theory of the economy which is based on work being the source of wealth. It is named after human kinetic science (a science of work) and explains why the economy fails when experts think nothing is wrong.

PRIMARY TRUTHS OF KINESIAN ECONOMICS

The primary truths of Kinesian Economics are:

  1. Wealth is different from money.
  2. Kinesian Wealth is economic wealth created by work. This wealth did not exist before the work was done.

    See more about kinesian wealth at: THE MISSING EQUATIONS.

  3. The primary source of Kinesian Wealth is work done in the private sector to produce products for sale on the open market. Secondary sources of Kinesian Wealth are sources of motive power, sources of materials, product design, transportation, and education.
  4. The worker himself, not the employer, creates most of the Kinesian Wealth. Business creates very little Kinesian Wealth apart from work done by workers.
  5. Government can not create any Kinesian Wealth.
  6. Eating, drinking, and wearing things out destroy Kinesian Wealth.
  7. Using the fuel from eating to work regenerates Kinesian Wealth.
  8. The person who eats, but does no work, destroys Kinesian Wealth.
  9. Taxation destroys Kinesian Wealth.
  10. Entertainment destroys Kinesian Wealth.
  11. Crime destroys Kinesian Wealth.
  12. Kinesian Wealth is necessary, because this stupid planet cannot support its human population, unless people work to farm the land.
  13. Government can't change the economy without causing side effects, which undo the desired change.
  14. Government attempts to raise wages cause inflation.
  15. People can't make a living because high taxes rob the worker of purchasing power. Tax policies also make it hard to own a business.

    More on this at THE LIVING WAGE SCAM

  16. Workers pay all business taxes when they buy the products.
  17. Business taxes must be included in the purchase prices of products. Business has no other source of income to pay taxes with.
  18. Raising tax rates takes more Kinesian Wealth out of the economy.
  19. Government is the main cause of poverty.
  20. Government attempts to help the poor end up hurting the poor more than doing nothing does.
  21. Government is the major reason there is no low-income housing. Property taxes, elitist building codes, zoning, and people owning land for income, all combine to make living space unaffordable.
  22. Because creation of Kinesian Wealth depends on private sector spending, raising taxes reduces Kinesian Wealth.
  23. If total taxation is higher than 10 percent, raising tax rates reduces tax revenue in the long run.
  24. Government models show the economy to be a parallel process of flows of money and goods. Those models show the average 01/01/2007 tax rate to be 36 percent. But that model is not true.
  25. The economy is actually in series, with the factories, wholesalers, retailers, and consumer-workers making up one series. Taken this way, the Kinesian Economic Model shows the 01/01/2005 tax rate as being near 72 percent, with all of it being paid by the consumer-worker.

    See more about this at ONLY WORKERS PAY TAXES

DIFFERENCES BETWEEN KINESIAN ECONOMICS
AND KEYNESIAN ECONOMICS

Economic factor Keynesian (govt) Theory Kinesian (work) Theory
The primary source of wealth Government Work
Philosophy on government Government is there to help people. Government is a necessary evil, stealing from everyone.
Size of government Not big enough, because poverty still exists. When people below the poverty line are paying taxes, government is too big.
Effect of increased taxes and government spending - Expands economy through more purchases of products.
- Provides more government services.		 - Workers must work much harder for a living.
- Business failures.
- Fewer jobs.
- Shoddy merchandise.
The primary taxpayers The rich pay the highest rates. Those who can afford to pay the taxes. The workers pay all taxes. Everyone else passes taxes on to workers through higher prices or lower wages.
How legislation affects economy Government can control an economy through regulations. Side effects undo any government attempt to control the economy.
Economic factor Keynesian (govt) Theory Kinesian (work) Theory
Type of economic model Parallel - Each consumer and business acts as an isolated unit. Serial - The same product flows through worker, manufacturer, wholesaler, retailer, and consumer - and the consumer is the worker.
Accuracy of current economic statistics: Are accurate. Are way off, because the methods assume a parallel economy.
Average 2006 total tax rate About 36 percent, spread among business and workers. About 72 percent, paid entirely by workers, including indirect taxes hidden in reduced wages and increased prices.
Reducing the load on workers Making government larger means less work for individuals. Reducing taxes means the worker can buy more for the same work.
The liberal goal of a workless society Superlarge government can supply everything by expanding the economy enough. The goal is impossible, because the planet cannot support its human population without the work done by farmers. If nobody works, there would be no food or other products.
Did a workless utopia exist in the past? The classical Greeks achieved this. We can do it again. The classical Greek utopia ran on slave labor.
Economic factor Keynesian (govt) Theory Kinesian (work) Theory
The causes of high health care costs - Greed in the medical industry.
- Greed in the pharmaceutical industry.
- Greed in the insurance.		 - Government medical subsidies unbalance the market.
- Health insurance for routine medicine unbalances the market.
- Copyrights and patents create monopolies.
- Huge malpractice awards by juries.
Is universal health care possible? Possible, because government spending on this further expands the economy. Impossible, because it would require a tax rate over 100 percent.
What is Social Security? It's a valid insurance system. It's a pyramid scheme that must ultimately fail.
Would privatized Social Security work? It would fail, because people would lose their investments if the stock market crashes. It would protect people from population shifts. The funds don't have to be invested in stocks. Bank accounts and CDs are also good investments.
The effect of a minimum wage Less poverty, because workers can buy more if they are paid more. Inflation, because prices must go up too. To get the money to pay workers more, businesses have to raise product prices. It always balances out.
Who is hoarding the money that could pay workers more? Business has most of the money in banks. Government took the money in taxes.
Economic factor Liberal Theory Kinesian (work) Theory
What would happen if the UN took away all of the money, and then divided evenly among all the people in the world? Everyone would be rich, and nobody would have to work anymore. Spend that $2500 carefully. That's all you get. And if nobody worked, there would be no products to spend the money on.
The bookstore paid the workers 5 percent of store income, sending most of the rest to the company head office. A worker said the workers deserve half of the store income. Is he right? His claim was valid, because most of that money was pure profit. His claim was bogus. The money mostly went to factory workers for manufacturing the books, paper to make the books out of, and taxes.
Flaws in each system - Apparently creates wealth out of nothing.
- A "wealth fairy" is needed to supply the predicted economy.
- Each economic entity is analyzed in isolation, without considering the effects of changes in one economic entity on another.		 - Is not politically popular, because it does not predict the miracles the Keynesian system predicts.
- Is not popular with those who hate work.
What is the cause of most economic problems? Corporations making excess profit. Wasteful government programs.

LINKS:

  1. KINESIAN ECONOMY IN ACTION
  2. WEALTH vs MONEY
  3. THE LIVING WAGE SCAM
  4. ONLY WORKERS PAY TAXES
  5. THE MISSING EQUATIONS
  6. STUPID GOVERNMENT TRICKS
  7. Home