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 Originally Posted by a500lbgorilla
Something to get you started.
And for the scientist mind in you, money and goods and services and debt et all are useful work. You got 100 bucks, you command 100 bucks worth of work. You've produced 100 widgets, you can trade 100 widgets worth of work (pray someone values your work like you do). Though it's a fuzzy exchange.
This is good. It's important to not extrapolate too much from it though. For example, if an economy is running too sluggishly, lowering interest rates will help it. This makes it seem that if interest rates are low, then the economy is not sluggish. But that's not true. Oftentimes, low interest rates are a sign of a sluggish economy even though lowering interest rates is a tool that is often used to turn a sluggish economy around.
Another example is that since one person's spending is another person's income, many people think you can just increase spending to grow an economy and make it more productive. That also isn't true. These two examples are of what happens when some is understood about economics, but not enough is understood. I do that constantly, but I hope I do it less now than I used to.
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