Economics 101

Econ 101 usually doesn’t start at the beginning. It starts with math and charts and human behavior, but leaves out the most important part.
FIRST.
WITHOUT INDUSTRY, COMMUNITIES DIE.
Throughout the world there are ghost towns, indeed, ghost civilizations, that withered and died when the industry dried up, or the natural resource was exhausted, and the jobs disappeared, and people left or starved.
Without industry, communities, cities, and entire civilizations die.
You MUST have industry bringing in more resources and energy INTO the community.
This is a manifestation of the even more basic rule: EVERY ORGANISM, ORGANIZATION, OR SYSTEM MUST BRING IN MORE RESOURCES AND ENERGY IN ITS DAILY ACTIVITIES THAN IT EXPENDS IN THOSE ACTIVITIES IN ORDER TO THRIVE AND GROW, OR IT STARVES AND DIES.
Even human organisms and organizations.
In human terms, we keep track of the expenditure and accumulation of resources and energy using the game markers called money. Excess accumulation (“more”) is called profit.
In order to do that, you must have industry, even if that industry is farming.

TWO

ALL INDUSTRIES UNNATURALLY CONCENTRATE RESOURCES AND CHEMICALS, AND STRESS THE SURROUNDING ENVIRONMENT.

Farming accumulates animal manure or plant refuse. Wagons and draft animals or mechanical farm machinery stresses the roads and streams surrounding the farm. Waste pollutes the surrounding area.

Manufacturing or service industries stress their environments likewise. Mining and forestry pollutes the environment. Manufacturing gathers raw materials to turn into products, waste from the process pollutes the environment.

Governments are instituted to develop the infrastructure, maintain it, and protect it, and the citizens that work in the industry. The industry is taxed to support the government services.

To maximize the profit from their activities, manufacturers attempt to minimize their taxes, and transfer as much of the necessary supporting services onto the government.

My mom always made me clean up any messes I made. I feel manufacturers should be likewise responsible.

The contrasting concepts of labor vs. capital is a false division, as overwhelming capital can obviate labor (witness the gold extracted from the Americas by Spain), and overwhelming labor can obviate lack of capital, (witness the success of Japan’s industry, which lacks most basic resources).

I guess somewhere along the line I need to discuss marketable commodities (resources and energy), and unemployment. But this is it for now.

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