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
Who’s To Blame For The Socialist Resurgence?
AD or ADD: 2019 Years From What?
Jesus’ Debt Warnings, Pt. 1: “The Serpent Indebted Me”
Christian Economic Forum is Not Yet Another TED-lite Self-Help Hype-Fest
‘Dignitarian Harm’: The Newest Thought Police Rationalization
The American Covenant: How American Independence Arose from the Colonial Pulpits
Gramsci’s Plan to Overwhelm Christianity With Socialism Using Culture
Nude is Natural: Should Clothing be Optional?
Are You A Kingdom Worker?
The Dream That Changed Europe
Dangers of Idolatry
SEX: The Secret of the West’s Economic Success
Costco Rejects Money For Children’s Miracle Network Because It Came From Gun Seller
Respect for God and Gratitude: How Toyota Rose On More Than Just Hard Work
An Investment Decision-Making Framework Based on Timeless Principles
Defending Costco’s Ban Of Gun Seller’s Donation For Sick Children, Corporate Rep Changes Story Mid-Sentence
More Tuckerism: ‘Conservative’ Journal Blames Markets For Social Ills
Follow Us
The Affluent Mix
What This Washington Post Journalist Learned After 544 Days In An Iranian Prison... March 13, 2019 | John Tamny
Socialism Is Not About Sharing – It’s About Killing... March 13, 2019 | Roger McKinney
Founding Fathers’ Plan: Governments Compete Over Us... March 13, 2019 | Jim Huntzinger
Rich People Who Don’t Shop At Wal-Mart Say It’s Bad For Poor People ... March 13, 2019 | Daniel McLaughlin
Jesus’ Debt Warnings, Pt. 1: “The Serpent Indebted Me”... March 13, 2019 | Jerry Bowyer
Who’s To Blame For The Socialist Resurgence?... March 5, 2019 | Terry Applegate
The Jussie Smollett Business February 25, 2019 | Robert George
Liberty To License February 19, 2019 | Terry Applegate
If Elizabeth Warren Really Was An Indian, She’d Know Not To Trust The Federal ... February 18, 2019 | Roger McKinney
By Persecuting Christians, Xi Is Risking His Own Regime... February 18, 2019 | Jerry Bowyer
The Real Divide In U.S. Is Not Between Liberal And Conservative, But Between Inf... February 18, 2019 | Frank Vernuccio
Freedom Is The Solution To Obesity February 18, 2019 | Jim Huntzinger
Our Society Is A Shame Factory February 18, 2019 | David Gornoski
The Flamboyant Absurdity Of ‘Modern Monetary Theory’... February 18, 2019 | John Tamny
Two Years Of Global Cooling But Cuomo Attacks Energy Anyway... February 4, 2019 | Frank Vernuccio
Wealth Equality = Stealing February 4, 2019 | Jim Huntzinger
What Christian Leaders Usually Fail To Understand About Economics... February 4, 2019 | Roger McKinney
Last Quarter Markets Got De-FAANGed February 4, 2019 | Jerry Bowyer
Warnings From A Past Pope And A President About Socialism... January 25, 2019 | Jim Huntzinger
Parliament Brexit Rejection Is Continuation Of Elites Rejecting Popular Opinion... January 25, 2019 | Frank Vernuccio
More Tuckerism: ‘Conservative’ Journal Blames Markets For Social Ills... January 25, 2019 | Roger McKinney
One Year Later And The Trump Tax Cut Boom Seems To Be Petering Out... January 25, 2019 | Jerry Bowyer
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.