I know there must be reasons and this is a dumb question, but I’m a bit of an abstract thinker and have trouble grasping it from a big picture presepctive. Can someone break this down for me? Can’t we all just kind of agree to just kind of… Reset some numbers or something?
Sincerely,
I’ve never taken an economics class in my life
In: Economics
Value and the economy are, as you stated, man-made. The aspect I think you have overlooked is that they are based on agreements. For example, if I purchase a 10-year Treasury at 1%, that constitutes an agreement. If we hit a “reset” button and all countries agreed to zero out their debt, it would be a violation of that agreement. Fair enough, but what if you had invested your life savings (we’ll assume $500,000), with the expectation (based upon a legal agreement) that you would receive back all of that capital, plus a little more?
And then the whole world decided to hit the button. Your entire life savings would be gone. Now imagine that, writ large. There is a ton of U.S. debt that is owned by the fund that administers military retirements, teachers’ retirements, municipalities, etc. Imagine all of those people now bereft of any ability to provide for themselves. Perhaps you think, “That’s okay, Bernie will set things up so that the government will provide for everyone”.
The U.S. is already in debt to the tune of $23,000,000,000,000. Give or take a few ducats. To take care of everyone, cradle to grave, would be an expenditure that most people cannot comprehend. I know I can’t. The U.S. would default and enter a depression unlike any the world has seen. We’re talking Revelation 18 here.
That’s why we can’t hit pause. All economies would break.
On the other hand, black marketeers have always been my heroes. If it ever comes to the scenario about which you inquire, I’ll have what you need, but you’re going to need to pay me with gold, silver, or weapons.
Source: I have a B.B.A. in Economics and am a combat vet Marine
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