Basic Economics

Economics is not a science, but the scientific method is of some use. One of those uses is to put the various factors in the economy into an understandable relationship. Once such relationship is stated in the Keynesian Formula that consists of the following make-up:

Consumption + Investment + Government Spending + Exports - Imports = Gross Domestic Product (C+I+G+X-M= GDP or Y)

Consumption is all of the purchases of Goods and Services. Investment is all the money that is placed in stocks and savings. Government Spending is all purchases by the government, and does not include "transfers". Exports less Imports means all that we sell outside of the US less that which we purchase outside the US.

This explains half of the economy. The spending part.

Gross Domestic Product is the same as income "Y". D = Y - T + t, where "D" is disposable income. "T" stand for taxes and "t" stands for transfers. So disposable income is equal to Income less Taxes plus transfers.



The two sides of economy look something like a plumbing system.

The Texas Populist

The Texas Populist is a blog designed to present the History and Political Philosophy behind the Populist nature of the United States.  It is the opinion of the author that the success and failure of a nation is based in the People.  A Democracy has to accommodate all people and their political will and the best way to achieve a consensus of what the "people" need and desire is to foster the ability of each group to express those needs and desires in an organized way. 

Today the people need a voice.  Their voice is filtered through media that are owned and run by people who a specific interest.  The people who work, be it in factories or in the fields, are the engines of production.  That is true whether it is in the supply of goods and services or the demand for goods and services. 

This in not in any way saying that the people who manage, finance, and own the Means of Production are not of a balanced importance.  It is to say that they are well capable of making their case for their needs and desires on their own.