The Real Economy

The Real Economy

The real economy is the economy that you and I live in, the offices, factories, farms, shops and the other physical elements that make up the economy. It includes our own financial transactions, getting paid a wage, buying groceries or other goods and services, giving to charity or saving money. 

The real economy is the economy of real life, our actual life not our potential life. Money invested is part of our potential life, money we have today is part of our real life. 

In a subsistence economy the important question is, have we produced enough food to survive or can we get access to enough food to survive. But in an advanced economy the question is, have we produced enough wealth, normally money, to provide for ourselves and our families. To produce enough wealth there needs to be access to both excess money to allow investment and jobs that pay a living wage. 

An economy without either of these things is inefficient because it causes friction between groups and friction can start sparks, sparks can create fires and fires can get out of control. It is best if the cause of the friction is not present in the first place.



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