This Dark Age

A manual for life in the modern world.

By Daniel Schwindt

NOTICE:
This Dark Age is now available in paperback on Amazon. The print version is MUCH cleaner than this online version, which is largely unedited and has fallen by the wayside as the project has grown. If you’ve appreciated my writing, please consider leaving a review on the relevant paperback volumes. The print edition also includes new sections (Military History, War Psychology, Dogmatic Theology).

Volume 1 | Volume 2 | Volume 3| Volume 4 | Volume 5 | Volume 6

The velocity of money

St. Basil likened wealth to a great spring: if the water is drawn frequently, all the purer it will remain; yet if it is left unused it becomes foul and stagnant.[1] Now this is of interest to us because of its economic parallel, which is the concept of the velocity of money. This concept says that money, if it falls into the hands of a poor man, will almost immediately leave his hands, either for rent or for lunch or for some other pressing need. If it goes into the hands of a very wealthy man, it may go into a bank account to draw interest, or it may go nowhere at all for a very long time. Now, economically speaking, the first is best, at least from the standpoint of a healthy, vibrant, functioning economy, while the latter is poisonous and leads to stagnation. The point is that even if the rich man spends and invests with frequency, he cannot possibly equal the velocity of the poor man. And so, at least from a particular point of view, great wealth is very literally a “drag” on the economy, while the more money enters the hands of the needy, the better.

[1] Cf. Saint Basil the Great, Homilia in Illud Lucae, Destruam Horrea Mea, 5

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