At the base point small towns, made largely of canvas tents with wood frames, evolved to supply miners with their needs. Most sough safe keeping for their finds, but as there were no formal banks, rudimentary transactions took place in the back rooms of bars and stores. Here, for a fee, the proprietor would provide armed guards for protection.
As the influx of currency from miners, settlers and entrepreneurs increased, permanent, formal banks were established.
In the natural scheme of things, the economic progression is one where the people came first, literally digging money from the ground, then the entrepreneur came to service the people, followed by banks.
A scenario where the banks came first, then the entrepreneur and then the miners makes no sense at all. Neither does one in which the entrepreneur came first, then the banks followed by the miners. That would be like a bank lending a washing machine factory the money to produce millions of washing machines then selling them to small businesses, but the people have no money to buy them with.
Obama’s economic recovery/ bailout plan mimics the scenario where the banks came first, then the entrepreneur and then the miners. It too makes no sense at all.
Let Americans citizens go into the hills and dig or pan for tax breaks. Then they will come forth and spend. The entrepreneur will sell all his washing machines, the factory can adjust to the demand then pay back the bank.
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