This video explains the evolution of the U.S. economy from a Natural Economy to an Artificial Economy from a unique perspective. The period of Natural Economy existed basically from the start and allowed the U.S. to evolve from a frontier settlement to eventually become the richest country in the world. However, after 1913 with the conversion to an Artificial Economy, there has been extreme boom and bust cycles, jobs shipped overseas, and overall economic decline.
ETHICAL ECONOMY vs UNETHICAL ECONOMY
On Average, None vs Constant, Often High
On Average, Stable vs Always Increasing
Determined by Demand vs Controlled by Edict
MONEY FOR LOANS
Lenders Limited Capital vs Infinite Supply
Limited Money Available vs Unlimited
SIZE OF GOVERNMENT
Limited vs Monstrous
An natural economy is the gold backed economy that evolved early in this country. As common in history, it was commodity based. Unfortunately, it also evolved with a fractional reserve banking system that caused serious problems.
An artificial economy has an entity that has total control over expansion or contraction of the currency, interest rates, and lending requirements. Artificial economies tend to be unethical. The present economy is an example of the axiom, "Absolute power corrupts absolutely."
Gold currency historically has resulted in an overall stable value while allowing expansion with increasing population. A commodity backed currency is not required for an ethical economy.
An ethical economy is one where zero inflation and full reserve banking are mandated.