Money Drives the Economy

I heard a news report last week proudly announce, “The economy improved last week fueled by consumer spending.” Consumer spending, or lack thereof may be an indicator of economic strength, but it doesn’t drive. It doesn’t fuel the economy.

Military bases weren’t always welcome in some communities. When signs begin to appear saying, “Dogs and soldiers keep off the grass,” the Army would frequently pay their troops in two dollar bills. This flood of two dollar currency was supposed to demonstrate how vital the base was to the local economy. It was estimated that the bills would pass through seve...