Forget the Rhetoric; Follow the Money
Photo: AGBeat
One of the biggest misunderstandings between many people is the flow of money and, especially, the flow of money from the purchase of foreign goods. “Buy American” or “buy Australian” are common refrains. But these slogans are the rhetoric of those who don’t follow the money.
The outcome of this rhetoric, when heeded, is an economic system that is poorer, not richer, because you cannot make Americans or Australians rich by legislation. But that does not stop some people from trying.
Follow the money, though, and see the outcome.
Imagine I buy goods in the United States. I only have Australian dollars with which to make the purchase. The American seller does not want to miss the sale, so he takes the Australian dollars. But he can only spend them in Australia, since Australian dollars are not legal tender in the U.S. This particular American, however, cannot find anything in Australia he wishes to purchase.
Fortunately, there are places of exchange which match Americans who have Australian Dollars but do not want to buy anything Australian, with Americans who don’t have Australian dollars but who do wish to purchase Australian goods. One sells his Australian dollars, the other buys it. They “swap” Australian and American dollars, and both walk away happy.
Now, the American who wishes to buy Australian goods can do the same. Thus, appearing on the horizon is another happy Australian seller about to make a sale to an American customer.
It turns out that following that money was not so difficult. Australian dollars spent overseas return to Australia sooner or later for purchase of Australian goods, as if the money had never left the country in the first place.
This is the simple principle of exchange. That is, exchanging goods and services is good for everyone. National borders don’t change this, but they often make the exchanges more difficult. It helps to remember the words often attributed to Frédéric Bastiat, who said that “if goods and services do not cross borders, armies will.”
Ian Hodge is an accomplished musician and music teacher, an executive manager and a management consultant to business owners.
Dr. Hodge began his working career as a professional musician. His interest in Christian economic theory, however, led to a move into the investment industry, where he made his way to the ranks of executive management. His first position as a CEO outside of his own company was a turnaround situation, and he found this was “his” place in the business world. For the past 16 years has been a business consultant to help turn around struggling businesses. He has clients in USA, Australia, New Zealand, and Canada.
He actively uses his consulting skills to help train church pastors, elders and deacons in leadership and church growth practices.
As a musician, he worked with several singers around Australia and the South Pacific as their accompanist and music director.
A current project is the development of SonCross Academy, an online school that starts with the Bible, providing lessons in music theory and piano, economics, business, history, philosophy and theology for ages 8+. www.soncrossacademy.org.
Ian Hodge received his Ph.D. degree from Whitefield Seminary in “Christian Intellectual Thought – Economics”. He has written over 500 articles on topics such as business management, economics, education, law, finance, health, philosophy, politics, theology, and music as he explores the application of a biblical world view. He runs his own blog at www.biblicallandmarks.com.
He is the author of:
· Why Would Anyone In Their Right Mind Believe the Bible? An introduction to the Christian Faith.
· Baptized Inflation: A Critique of “Christian” Keynesianism.
· Is This The End of Religious Liberty? The Declaration on the Elimination of All Forms of Discrimination and Intolerance Based on Religion or Belief.
· Making Sense of Your Dollars: A Biblical View of Wealth.
· How To Be Diabetes Free . . . For Life. An analysis of the biology of diabetes, and how this disease can be prevented and even halted.
· Ian Hodge’s Read, Write & Play Music, a self-teaching program that instructs young students on how to write (compose) music.
· Powerhouse Piano, online video and live lessons in classical piano.
· Publisher, editor, William the Baptist. A classic in Christian literature, reissued with an introduction by Dr. Hodge.
In his spare time, Ian can be found actively debating atheists on his city streets and elsewhere (anywhere) whenever the opportunity arises.
Trending Now on Affluent Christian Investor
The American Covenant: How American Independence Arose from the Colonial Pulpits
Biblical Economics & Finance: Government’s Role
Who’s To Blame For The Socialist Resurgence?
June Employment Data Show Steady Economic Weakening
Are You A Kingdom Worker?
Sermon On The Mount vs. Sermon On The Plain: Different Messages For Different Economies
The Futility of Managing Your Own Reputation
Philosophical Film Review: The Man Who Knew Infinity
The Jussie Smollett Business
Dear President Obama: I’m Only My Brother’s Keeper If My Brother Is My Sheep
Gramsci’s Plan to Overwhelm Christianity With Socialism Using Culture
How Learning By Suffering Built the Japanese Economic Miracle
Nude is Natural: Should Clothing be Optional?
What This Washington Post Journalist Learned After 544 Days In An Iranian Prison
Shemitah Years and Blood Moons as Market Timing Tools
Are Entrepreneurs the Most Important Christian Leaders?
Economist’s Love Of Fed Is Really Love Of Power
Follow Us
The Affluent Mix
Why Dem Candidates Are Going Easy On China... July 10, 2019 | Frank Vernuccio
June Employment Data Show Steady Economic Weakening... July 10, 2019 | David Goldman
Biblical Economics & Finance: Government’s Role... July 10, 2019 | Jerry Bowyer
We Don’t Need More STEM Grads, We Need Better STEM Grads... July 10, 2019 | Jim Huntzinger
In Search Of Christian Entrepreneurship Home School Content... July 10, 2019 | Kevin Cullis
Why Do Democrats Hate Families? July 2, 2019 | Roger McKinney
Non-Voting Citizens Violates One Man, One Vote... July 2, 2019 | Frank Vernuccio
SAT And IQ Tests’ Eugenics Roots July 2, 2019 | Jerry Bowyer
Is Virtue More Important For The Leaders Or For The People?... July 2, 2019 | Jim Huntzinger
Trump Is Talking The Dollar — And The U.S. Economy — Into Decline... July 2, 2019 | John Tamny
Today’s Pets.com And NINJA Loan Economy... July 2, 2019 | Michael Pento
Collectivism Leads To Violence? It IS Violence... June 24, 2019 | Jim Huntzinger
Forbes Publisher vs. The B+ Student Suicide Epidemic... June 24, 2019 | Jerry Bowyer
Congress Not Taking The Russian-Chinese Military Axis Seriously... June 24, 2019 | Frank Vernuccio
Is A ‘Tight’ Federal Reserve The Cause Of Buffalo, NY’s Malais... June 24, 2019 | John Tamny
Biblical Economics & Finance: When Demand Becomes The Driver... June 24, 2019 | Jerry Bowyer
US Fed Decision Keeps Stocks Treading Water... June 24, 2019 | David Goldman
Those Who Choose Security Over Liberty Deserve Neither – And Will Get Neither... June 17, 2019 | Jim Huntzinger
Social Security Won’t Go Bankrupt — It Will Just Cut Your Benefits!... June 17, 2019 | Daniel McLaughlin
There Are Two Americas June 17, 2019 | Frank Vernuccio
Biblical Economics & Finance: Balancing Investment & Consumption... June 17, 2019 | Jerry Bowyer
Illegal Immigration Fight Is About Election Fraud – Not Racism... June 14, 2019 | Frank Vernuccio
Join the conversation!
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.