In this section of Mike Winther's class on Biblical Principles of Government. Mike dives into economics with the goal of making economics useful to us. We explore the strategies communist leader Khrushchev purportedly advocated for undermining our economy through the gradual introduction of socialism.
Mike emphasizes how societal readiness for change often emerges from discontent with the current state of affairs, suggesting that instigating dissatisfaction is a precursor to change.
The lecture covers both microeconomics and macroeconomics, with Mike providing a tangible example of microeconomic principles at play on a deserted island. He discusses concepts such as capital, tools, and surplus production, underscoring the notion that there is nothing inherently wrong with seeking to improve one's standard of living—a pursuit even encouraged by the Bible.
Furthermore, Mike addresses the topics of exchange, trade, specialization, and the capacity to fulfill the needs of a community. It's possible that this lecture is even more relevant now, then when it was first given.
You'll Learn:
[01:11] You can accomplish a lot if you don't care who gets the credit. You can accomplish a lot if you're not in too big of a hurry.
[01:36] Being fed small doses of socialism until we wake up and find out we already have communism.
[02:01] There are groups and individuals who intentionally want to weaken the economy.
[03:01] People accept change when things aren't going well. You have to have a problem in order to be able to implement a solution.
[03:38] If you want to make change, you have to make it so things aren't going well.
[03:54] Economics comes from two Greek words which means the law of the house. It's the policies of running the house.
[04:35] Microeconomics or the economics of a household or firm or something small.
[06:38] Macroeconomics is the study of something bigger like a whole nation.
[07:17] Market friendly econ schools will want you to take microeconomics first. Big government leaning schools will want you to take macroeconomics first.
[08:30] Understanding the principles of microeconomics, a student won't fall for the big government macroeconomics.
[15:51] Means of production: Capital or tools. Capital is also excess production.
[21:47] There's nothing wrong with material wealth or improving your standard of living.
[26:51] Specialization matters. We can't have specialization without trade.
[30:59] Trade without money is called barter.
[36:19] As the island grows bartering becomes a problem, because the trade overhead is too high.
[39:29] Money needs to be durable and divisible.
[43:44] Inflation is an increase in the money supply. As the money supply increases, prices go up.
[48:36] Intrinsic value or something that will always have value.
[50:21] There's no inherent scarcity in paper money. Governments can print more of it.
[55:26] Inflation is like stealing.
[56:25] 1st Samuel chapter 8: When the king demands 10% you will be slaves.
[59:46] Economic issues are moral, ethical, and biblical issues.
