OPEN LETTER TO NEIL CAVUTO; ENOUGH WITH THE "CAPITALISM" SOUL-SEARCHING

Collectivists are absolutely floored by an actual understanding of the theory. Most have very little idea what the concept of real capitalism actually is. I was discussing with my uber-leftwing neighbor about the bank bailout. She is a lawyer, but is economic policy challenged. She said, 'well if we let the banks fail, where will we get money to invest?' I explained that insolvency doesn't make a business evaporate. The good assets will be sold off to someone else who will in turn use them to build another business. She was floored. Her entire education in economics was predicated on bankruptcy being a completely pedestrian concept, i.e. no money or assets, all liabilities. Once I explained the business interpretation, she was puzzled. Her entire understanding of economics was shaken to the core.
Thanks for the post.

...getting attaboys from people so much smarter than me.

We have to do something about this lack of knowledge about basic econ.

I know, let's take back the schools, and start by giving little Freddie those math "reading problems" at about the third grade, and build up from there.

Children may as well believe there's a Santa Claus and babies come from storks if they're going to be taught that money grows on zero-sum trees.
Cheers