John Adams: Credit Causes Distress

Posted by admin on Tuesday, November 23, 2010

John Adams Money Quotation saying failure to understand the banking system and workings of our financial system and credit machinations are at the core of American difficulties. John Adams said:
 

 

“All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation” — John Adams

 

 

This quote by John Adams, one of America’s Founding Fathers and the second President of the United States, offers a profound insight into the economic challenges of early America. Here’s the best interpretation:

1. **Root cause analysis**: Adams is suggesting that the primary source of America’s problems isn’t political or moral, but economic in nature.
2. **Specific issues identified**:
   – “Perplexities”: Complex situations difficult to understand or solve
   – “Confusion”: Lack of clarity or order
   – “Distresses”: Difficulties or suffering
3. **Rejected causes**:
   – Defects in the constitution or confederation: He’s not blaming the political system
   – Lack of honor or virtue: He’s not attributing issues to moral failings
4. **True cause identified**: “Downright ignorance of the nature of coin, credit, and circulation”
   – Coin: Understanding of physical currency
   – Credit: Grasp of borrowing and lending systems
   – Circulation: Knowledge of how money moves through an economy
5. **Implied solution**: Better education and understanding of economic principles could alleviate many of the nation’s problems.

This quote demonstrates Adams’ belief in the critical importance of financial literacy and economic understanding for a nation’s success. He’s suggesting that many of America’s troubles stem not from flaws in its political system or the character of its people, but from a fundamental lack of knowledge about how money and economics work.

Adams’ insight remains relevant today, highlighting the enduring importance of economic education in addressing societal challenges.

Birthday: October 30, 1735 – Death: July 4, 1826

#ConstitutionDay September 17

 

Categories: politics Tagged:americacirculationcoincreditjohn adams