When we think of the state of the economy, we are not thinking in terms of money flow. We are thinking in terms of the effect on everyday lives of people.
Sentiment: POSITIVE
The importance of money flows from it being a link between the present and the future.
It affects every aspect of our lives, is often said to be the root of all evil, and the analysis of the world that it makes possible - what we call 'the economy' - is so important to us that economists have become the high priests of our society. Yet, oddly, there is absolutely no consensus among economists about what money really is.
The economy is not an abstraction. The economy consists of people, and it will only grow if people feel secure and are reasonably free.
Economics is a strange science. Our subject deals with some of the most important as well as mundane issues that impinge on the human condition.
Wealth flows from energy and ideas.
Money is a very important tool to make a big difference in people's life. It is positive or negative depending on the values.
Money flows into the US, and inflates US assets, and allows the US to have a monstrous trade deficit. That means we are consuming more than we are producing.
When the government takes more money out of the pockets of middle class Americans, entrepreneurs, and businesses, it lessens the available cash flow for people to spend on goods and services, less money to start businesses, and less money for businesses to expand - i.e. creating new jobs and hiring people.
In a normal time, I don't think economic policy makes a large difference one way or another. But in times of crisis it makes all the difference in the world.
Economics is all about consumption. People either spend money now or they use financial instruments - like bonds, stocks and savings accounts - so they can spend more later.