Goals#
The study of economics should be a science, not a religion. Our economic system is not based upon the words of Moses and Jesus, or the bible. Our economic system is a human made process that is defined by legal rules and laws. It is a legal machine or process that people have made. As with any machine or process designed by people, to be successful, the design effort must have clearly defined goals.
The goal of designing an economic system is to have it produce and deliver the goods and services desired by people and society, subject to constraints imposed by society. While producing and delivering goods and services, the quality of the earths environment, and the quality of human life must be maintained.
A society should have goals other than producing goods and services. However, this document focuses on the almost entirely on the production of goods and services by our economic system.
As a final and important note, the purpose of an economic system is not to manufacture money and wealth. It must be realized that money, and what is commonly called wealth is from an economics point of view, a means to an end, but not the end itself. We must always keep our eye on the end, which is the production of goods and services.
Productive Behavior#
All components of the economic system must be proficient in producing goods and services. Define productive behavior as economic activities by a corporation or person that results in the satisfaction of at least one of the three following criteria.
Increase or maintain, the production and delivery of goods and delivery of services.
Improve the quality of goods and services.
Decrease the amount of labor or resources required for the production and delivery of and services.
The above three criteria are guidelines for determining productive behavior. Sound and thoughtful judgment is required to determine if the economic actions by a corporation or person are productive or not.
Parasitic Behavior#
Parasitic Behavior is when a corporation or wealthy individual receives significant wealth or benefit without providing a commensurate level of productive behavior in return. In a perfectly designed economic system, productive behavior will be the only means to acquire great wealth other than inheritance, or in some cases, gifts.
When patterns of parasitic behavior occur, look for practical and suitable ways to prevent such behavior. Sometimes people who own or control corporation have a great craving for power and wealth, but little compassion or empathy for others. When these people can achieve their goals through parasitic behavior, they will do so. However, these same people will strive to be productive and become useful members of society if it is their only option to satisfy their desires.
Parasitic Behavior of Poor People#
The above definition of parasitic behavior only considers rich people and corporations, and ignores poor people. This is done intentionally, this document focuses on the economic behavior of the wealthy and corporations.
Parasitic behavior by poor people exists, and is an important topic. But this document will not discuss welfare queens and other such subjects, as such discussions will distract, and are irrelevant to discussions about parasitic behavior of the rich.