The Bucks County Courier has some editorial writers who assign too much importance to “the banks”. A recent off-base opinion writer blames the banks for everything wrong in America. The writer failed to grasp the position of banks within an economy as well as missing the other parts of an “Economy” that is developed as a result of the market.

Some banks and some bankers are corrupt but most are not. The Fed is involved in important decisions that affect the economy but their influence is rather small compared to the total number of decisions that are made by all of the businesses and workers who make up the Economy. Economists must everything in any study of the economy. It’s a mathematical integration. To identify the importance of one part of an Economy the results of that particular element is a mathematical differentiation.

A good example is to study how many people it takes to make an apple. that requires a farmer. The farmer needs equipment to plant, grow and harvest an apple. The equipment must be manufactured. Each part of for example, a tractor requires lots of people to make the individual parts of the tractor as well as people who assemble it. The manufacture of the tractor in turn requires lots of other people who supply the individual parts who in turn require many other people to make and sell those parts. Other farmers supply food the all the people who are involved in making a tractor.

So how many people are needed to make an apple?
Probably hundreds of thousands.

How important if The Fed? The banks? There are too many elements in an economy to get a precise answer but it’s wrong to simply isolate “The Banks” and rap on about what’s wrong with the Banks without including the rest of the market. the Courier Times should know that and they should only print the truth.

My suspicion is the Courier doesn’t know what it’s writing about on many things. Just as it’s not correct to discuss the Banks in isolation, it wrong to elevate the Banks to some false position and then condemn then as the Courier did.

Visits: 12