Economic has many hundreds of factors that constantly change.  It is often hard to flush out the cause or effect of any one policy. Data is often very hard to collect. The collectors or those that analyze often do so looking to prove their world view. 

The Closed Off Small Town

Let’s imagine a small closed island that is populated by 100 people.  Four groups of 25 each on different parts of the island.  To have a constant starting point for the purpose of evaluating different policies we are going to have:

To make things a little more obvious we are going to say that all trading happens only once a week.  This includes ordering services or renewing employment contracts.  After every change, we are going to understand how you and by extension most other will change your behavior.  Would you buy more?  Sell more?  Save more? Work more? Change what you value? Forgo day, for expected benefits tomorrow?  

60 people working for the purpose of trade.  40 people are either retired, young and being educated or taking care of family.  All the people do a certain amount of work just bettering their own lives such as cleaning and maintain their house, property and themselves.

Everyone trading uses their comparable advantage to create a product or service to others.  The 60 trading are at different skill, experience, responsibility, and need levels.  There are 10 that are employers, 30 that are employees and 20 self-employed. 

The Economy

The starting point for every scenario is a $100x economy per week.  Everyone trading brings their products or services to the market to trade.  The following scenarios will always reset to this standard as to eliminate so many factors changing at once.  We know that every change in any one factor can have small to large factors in others, however resetting back to this base, brings things into focus.

 


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    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.

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