Economics 101 — Money is Always Productive

SEE HERE  Eric Cantor doesn't understand economics as Mark Levin points out.  The problem is that he doesn't understand Economics 101.  This ignorance is due to a lack of understanding of what money is.  Money is just current evidence of past productivity.  If it is not in motion it disappears because it is all fiat money.  Money is always working because it is always in motion.  If you put it in the bank the bank loans it out and that goes to productivity, in the form of either production or consumption.  You buy things and you build things.  You provide services or you consume services and the money is a sign of the exchange.  It has to be in motion.  The corollary is that unless the money is stuffed in a mattress doing nothing it is always being productive.  Eric Cantor should understand that and it is scary that he doesn't seem to.