My husband the tax policy wonk says that knitting your own socks does more good for the American economy than the Federal Reserve Bank.
The Federal Reserve Bank is harming our economy by following policies that reduce the value of our dollar, which reduces the incentive for foreign countries to continue lending us money. Of course, in previous years, Federal Reserve Bank policy encouraged Americans to borrow money to purchase goods from foreign countries. The net result is that our balance of trade is unbalanced heavily in favor of foreign countries.
In other words, we are a nation living off of credit cards, and we are in hock primarily for foreign goods.
The only way to put the equation back in balance is for us to produce more things of real value. Like handknit socks.
Every pair of handknit socks means an increase in our wealth and a reduction of the trade deficit.
Economists recognize that people who work at home produce valuable goods and services. They also recognize that these goods and services are not taxed. This makes the value of home workers’ goods and services even greater, because they are tax-free.
The most effective stimulant to the economy is tax-free increases in wealth. Home-based work, such as homemade knitted goods, tends to fix the balance of trade and stimulate the economy in a more positive way than government checks–even tax refunds.
My husband said the new socks I just made look like $50 socks. They cost $18.95 to make. This is a net gain of $31.05 to our personal wealth–and an actual gain of $39.74, because the socks were not taxed. (I included the sales tax of the yarn in the cost of making the socks.) By the way, that tax we saved is based on the 28% rate, or $8.70, which just happens to be my exact cost, before sales tax, of one skein of Regis sock yarn.
So, knit and grow rich is a true prospect, and patriotic, besides. Knit on!
10 responses so far ↓
kamelda // February 6, 2008 at 10:40 pm |
I stimulate the economy by making my own bed.
Lauren // February 6, 2008 at 11:02 pm |
Excellent, citizen Kamelda!
Sammy LC // February 7, 2008 at 4:52 pm |
I truly wish homesteading was taught as a course at high school , to prepare the average person to grow their own food and make their own goods. It would help the economy on a whole.
essiewb // February 7, 2008 at 10:30 pm |
Can’t wait to steer my skeptical friends to this explanation. They think I’m just spoiling myself with the warm hug of merino wool and showing off my skills with two skinny circular needles!
Lauren // February 7, 2008 at 11:05 pm |
Hey, how do you like those circulars, essiewb? I learned how to do it, but I’m skeptical because I’m used to Needle 1, Needle 2, and Needle 3 and their respective stitches when it’s time to decrease the toe. Do you find you knit as tight on the circulars as on dpns? Do the stitches get bound up on the cables when you try to slide them to the points? I was afraid to buy two circulars and find out I liked the “satay skewers” better.
But yeah, knitting is comprehensive: in it are warm hugs and the wealth of families and nations!
Lauren // February 8, 2008 at 2:41 am |
Sammy,
I think you make a very good point. But if people became competent and independent, what would government do for a living?
ivyarts // February 8, 2008 at 3:16 am |
Does quilt making count? How about homemade bread? I couldn’t knit a sock to save my life.
Lauren // February 8, 2008 at 3:30 am |
Absolutely, Ivy! Everything we produce instead of buying has market value. It’s just that we add the value, and it becomes the “value-added” normally included in the cost of ready-made goods. But let me emphasize that ready-made goods have their place! I couldn’t begin to produce everything our household needs. I make bread, but I couldn’t begin to make a quilt.
We all have to decide the highest and best use of our time and labor, just as we decide the best use of our money when we purchase needed goods and services. But yes, most certainly, the quilts and the bread you make have value and increase the wealth of your family and ultimately the nation, even if they’re fun to make.
Cronacaman // February 8, 2008 at 4:05 am |
I make my own pizza dough. Why pay outrageous prices for pizza? By adding my own toppings to my pizza, I add value. This is good for my own private economy in my kitchen. Besides, they just raised my rent. I have no money anyway! It’s a cruel world out there.
Have a great day anyway!
Lauren // February 8, 2008 at 4:26 am |
Fabulous, Cronacaman! I bet you could score some handknit socks for enough pizza, too.
What an interesting virtual knitting clatch we’re having!
You have a great day too!