The Econosphere

2. Where Does the Economy Come From?

Where the economy comes from is a question that is almost never asked, and I guarantee you that if it were posed, say, on Sunday mornings on the various political policy TV shows, we would come away with many a YouTube-worthy answer! “The economy comes from natural resources.” “The economy comes from good policy making.” “The economy comes from the middle class.” “The economy comes from me, and if you vote for me, I will...!” Well, now that I think of it, and as silly as it might sound, that last answer is about the closest to the truth as are any of the above answers.

Here’s what you should do to think about the answer to this question. Start with the whole economy, and then start subtracting things ...