Your Planned Destruction

I am going to tie economics to the illegal immigration question. I am going to do that by asking you a question. It may seem simple but that is the beauty of the question. And the question is--What happens to the price of oranges when you have too many oranges? Does the price of oranges go up or down? What if you have too many apples? Same question same answer. The price goes down. It’s the fundamental law of economics --Supply and Demand-- Too much supply means falling prices. Is this racist? Does it matter if the apples are German apples or Mexican apples? Afraid not amigo. There’s nothing racist about it. Over supply means lower prices and if you have an oversupply of workers you have a lowering of wages. Nothing racist about it, that is just economics.

And that leads us to a new economic breakthrough, a new economic law and you read it here first, on the Greenskys blos, and since I discovered it, I get to name it after myself, and it’s called Ronald Neal Green’s law of national economic governance--and the law is

“The easiest way to create mass prosperity is through a labor shortage and the easiest way to create mass misery is through a labor surplus.”

There it is, the rosetta stone of economic governance. Once you have a labor shortage every law of economics moves to create higher wages which means more spending and buying and more demand for production and more workers and more wage increases. Does this lead to inflation? Absolutely not! Inflation is a function of expanding the money supply faster than the supply of goods and services increases. Anything you hear to the contrary is propaganda.

If you don’t have a shortage but rather you have a surplus of labor, that creates mass misery. How? Too many workers lowers the price of workers, called wages, just like too many oranges lowers the price of oranges. Less wages means less money to buy goods and services, and this we call falling demand. Falling demand means less need for workers and even less demand and so on and so forth. Now business’s can lower prices to stimulate demand but more often they will hold back production to keep prices up by drying up supply. When business cuts back on production it is called sound management and the financial pages praise the self corrective power of the market. When labor holds back production to keep their price up it’s called a strike and the editorialists condemn it as dangerous anarchy.

Now, you’re probably thinking, This can’t be true. Ronald Neal Greens law of economic governance, “a shortage of labor leads to mass prosperity, a surplus of labor leads to mass misery.” Where has this law been all this time? Surely, if this were true, the economists would already know about. If it’s true, why haven’t we heard about it before? Well, friends I’m here to tell you it is true, and, yes the economists know about it, and that will be the subject of a future column.