15 January 2011

Income-based to asset-based

An asset-based economy shifts the power of the leadership from the economic to the political. 
Those who wish to institute strongman rule, even at the price of a smaller national product, will favor asset-based economic systems over income-based ones. 
The conservative movement's program was thus oriented to moving the American economy to become asset-based so that their ideological conviction could hold more sway in the political-economy. 
It is entirely possible that the entire program of free market economics succeeds because it is an effective way of harvesting the natural assets that are God given. When the natural assets run out the economies make a last gasp my exploiting the financial assets that are the gifts of seigniorage; and when that runs out the societies collapse. 

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