resource-use cycle
Dear Jared: I have read most of your book, CRUNCH, and find that it is a really good representation of conventional economics. You have written well and explained many things in a way that resolves what perplexes most people. I have been thinking outside the box, however. The basic unit of economics is the transaction, but transactions can occur without money being involved. The example I use is that of a mowed lawn. I can pay to have it done or do it myself. In the first case money is involved, in the second a resource has been used that does not involve money. The monetary cycle, income and outgo, is indicative of what is happening, but the resource-use cycle that flows in the opposite direction has not been recognized. I trade a resource for money, and trade that money for a use. It may involve money, and it may not. We study the income and outgo cycle, and ignore the resource-use cycle for several reasons. The income-outgo cycle can be measured. The resource-use cycle cannot. An egg is a resource at breakfast, for the rest of the day it is not. Our objective at breakfast is to eliminate hunger; once the objective is accomplished the egg is no longer a resource. This means that the nature of a resource is highly fluid, and so inconsistent that measurement is impossible. It is subject to statistics, however, because the uses are usually repetitive. These statistics are very useful as long as the situation is stable. This allows a rational understanding of what is going on even though it is very incomplete. I have written a book based on the consequences of looking at the economy from this different angle. This book is titled BUDGET YOUR GOALS, NOT YOUR SILVER, ISBN 0-9647891-1-6. It can be purchased at 800-247-6553, at order@ bookmasters.com, or I can send you a copy. Since the approach is so radical to conventional economics it will need to be read slowly, and without reference to conventional wisdom. Since it explains many of the phenomena that puzzle people, it really needs to be understood. Thank you for your time. I really feel that you are at least trying to understand what ails our economy.
