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Category: Economics

How America’s Economy Works.

A man wakes up in the middle of nowhere. He has no money, he doesn’t know where he is and there is absolutely nothing around him, except for a small diner. The man walks towards the diner, where a sign reads “eat all you want, your grandchildren will pay”.

 

The man walks in, eats like there is no tomorrow and, when he is done, a waitress walks up to him and gives him the bill. “Wait, I read the rules carefully.” says the man.”I know,” replies the waitress “this is your grandfather’s bill.”

Updated: March 8, 2017 — 11:20 AM

The Reason Why Millions of Bats Dying is Scarier than Dating Taylor Swift

bat eating grape

bat eating grape

Bats aka devil birds are funny looking. Those little evil winged spawn of satan sleep upside down. They scare little kids.  Why should we care about them ?Well bats are great for pest control.  They are worth about 3 billion per year for the U.S agriculture. Bats are the only flying mammal in the world.  They kinda look like a cute flying dog. I recently learned that bats eat mosquitoes !! I need to adopt some bats for our house.  Now more than ever since everyone is freaking out about zika.  Bats eat all kinds of other bugs too.  Bats and bees both pollinate plants. They do all that work and don’t ask nothing in return. 

 

Little_Brown_Bat_with_White_Nose_Syndrome_(Greeley_Mine,_cropped)Unfortunately just like bees bats are dying by the millions.  The dreaded White nose syndrome has killed over 5.7 million bats since first discovered in 2006.  This fungus grows on bats while they are hibernating and damages their wings.  The fungus messes with the bats hibernation. Bats eat a certain amount of food to gain fat so they can sleep thru winter.  The fungus wakes them up and bats start flying around and acting like they normally do in spring. Since it’s winter they can’t really eat much and waste their fat reserves and die.   

The White nose syndrome can only spread by touch so efforts are being made by authorities to either ban entry into batcaves (sorry batman) and or people will have to decontaminate their clothing. There is no current treatment or cure but I hope they find one soon.

sad batman

Updated: June 18, 2016 — 1:25 PM

It’s no secret that bees are dying.

So what’s killing bees ?  Many theories have sprung up but a lot of evidence has come up pointing the finger at Monsanto’s neonicotinoid pesticides.  The European union has banned the use of neonicotinoid pesticides and the bees are coming back.  So what if bees die  those things are scary and build their hive in inconvenient places sometimes.

produce choices with bees and without

The problem with bees dying is that they wont pollinate plants.   So we won’t have enough food to feed animals and people. From a conspiracy theorist point of view it’s a great way to control population and or a way for corporations to take advantage of the situation and make more money.

bee Colony-Collapse-Disorder-720x613

Smart countries are now banning neonicotinoid pesticides.  The U.S should make a law limiting the use of neonicotinoid pesticides at least for commercial pesticides. Millions use pesticides to kill bugs and weeds and more often than not harm the good bugs and plants. Then the chemicals get washed away by rain and end up in oceans. This causes algae to grow and soaks up oxygen from water but we will go into detail on that on another post. 

how to help bees

I know I know bees are scary right ?  When ever a bee get’s close to me I swear I turn gay for about 5 seconds and scream and run away.  Everyone who can should plant a garden. Fill it with fruits and veggies.  It’s better than just planting grass.  Can’t eat grass.  Bees will pollinate plants and in return  we can eat their sweet sweet honey. 

Updated: May 22, 2016 — 9:36 PM

An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class.

socialism vs capitalism

That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

denmark socialism failure
The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F. As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else. To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that. (Please pass this on) These are possibly the 5 best sentences you’ll ever read and all applicable to this experiment: 1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. 2. What one person receives without working for, another person must work for without receiving. 3. The government cannot give to anybody anything that the government does not first take from somebody else. 4. You cannot multiply wealth by dividing it! 5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

Updated: May 1, 2016 — 12:14 AM

The “paradox of free trade”

 

Tom wants an apple. John has an apple and offers it for $1. Tom counter-offers 50 cents. John re-counters at 75 cents. They agree. Sale. John decides this is a business he likes. But he notices other sellers are nearby. So, John needs to be competitive. One day John has some older apples that he normally doesn’t sell. But he thinks they are ok and really needs the income. Tom buys these apples – eats them – and gets sick. Tom returns to John and ask for his money back. John refuses claiming Tom has no proof it was his apples that made him sick. Tom calls his lawyer and sues John to pay for his doctor’s visit. John goes to court and loses. John learns a lesson about the power of the government.
Yet, Tom wasn’t alone in reporting bad apples. Others besides John have also been selling bad goods, causing many lawsuits. So, government decides to set up an organization to regulate the production and distribution of apples. John, bothered now by costly new regulations that are threatening the profitability of his apple business decides to befriend the regulators and offer money in exchange for leniency. They agree, albeit covertly, and suddenly John has even better profitability, with his competitors now at a disadvantage. Over the next few years, John expands his apple business, buying up other shops in the region to limit competition. At a certain point, he is able to undercut just about everyone else around due to mass production, putting many small shops out of business. One of the people he put out of business goes to the government and complains that there is no way others can compete with John in the market. The official decides the man is correct and, under public pressure, forces John to break up his apple shop monopoly.

John, who has become quite wealthy by this point, does not like this and quietly arranges for his executive friends to take control of the now divided apple shop monopoly. Then, in secret, the different shops work together to assure they get maximum returns by keeping prices fixed overall, creating a cartel.  Over time, John’s public stature in the community grows as he gives to charities, attends fundraisers and makes friends with government officials. John is happy. That is until it comes to his attention that a new apple shop is working to import apples from another town, posing a competitive threat. So, John, who gave generously to financially help a government friend get reelected into office, asks for a return of the favor. That being, to increase the town tariff on apple imports, making the cost is high enough to ensure the other shop would no longer be profitable.

It works. And John is happy again. But not for long. It appears John’s apple farm has been employing illegal workers and paying them very little. A gaggle of annoying human rights activists then come to his farms, causing a stink. John claims he was unaware of the illegal hiring and fires some of his staff as scapegoats. He then rectifies the situation, assuring his regulator friends it was all just an honest error.  Unfortunately, one of John’s former staff, upset by being fired, then goes to the authorities with legal documents and memos proving not only that John ordered to hire illegal workers but also revealing payments to the apple shop regulators, the conspiracy to assure cartel power, and the collusion with government officials for the tariff hike. John, after being found guilty on all counts, stands up to face the judge in court: Judge: Do you understand the crimes you have been proven guilt of? John: No Sir. I was only following the ethic of the free-market. Judge: Clearly you must have failed economics as you have engaged in government collusion, conspiracy, price fixing and illegal employment. John: No Sir. I have simply let supply meet demand and voluntary choice decide each action. 

Judge: So something like price fixing is not against the theory of free-market practice? Last I checked a free-market was to be free of interference and collusion? John: No Sir. A free-market is having the freedom to trade and compete as you see fit, buying and selling whatever you choose, with all parties voluntary in exchange. Judge: That may be so, but your actions, such as conspiracy in tariff fraud, are clearly going against such principles as you are using force to stifle your competitors.  John: Your reasoning confuses me, Sir. All acts of competition exist to stifle and outperform competitors. Only voluntary exchange binds how the act of competition unfolds in a free-market. One does not make your claim when a person purchases advertising, disproportionally exposing a consumer to an item over other competitors. Using government to my advantage is the same thing. Judge: So let me get this straight. You are telling me that the free-market allows for the buying and selling of the very mechanisms designed to regulate the free market? John: That is correct Sir. The free-market includes the freedom to the take away the market freedom of others through the act of competition.  Judge: Well, I’m sorry to break it to you John, but not everything in this world can be bought and sold.

Our society was not set up to benefit those with the most money. Your sentence is 15 years in jail or a 50 million dollar fine. The judge then drops his gavel in a bold sign of dignity and satisfaction. John pauses, grins in amusement and pulls out his checkbook. He pays the full fine, gets in his Ferrari and goes back to his mansion in time for a dinner party.

 

Welcome to the true free-market.”

by Peter Joseph

Updated: March 25, 2016 — 10:40 AM

From 1958 to 1962 China killed insane amount of sparrows which lead to the Great Famine.

Mao Zedong

From 1958 to 1962 the genius above gave an order called  the Four Pests Campaign part of a group of plans to help his peons in his country move forward. The four pests to be eliminated were rats, flies, mosquitoes, and sparrows. I’m all for eliminating flies but sparrows really buddy ?  So his slaves started killing sparrows by the millions.  What did the sparrows ever do to hurt anyone ?  Apparently they ate grain  planted in the fields and this affected their food output.

 

 

So less grain eaten by sparrows and crop production increased exponentially.  NOT !  since they started killing sparrows by the shitload another problem arises.  Locust started eating all their crops like crazy. They ate so much crop product that it started the great famine that ended killing about 45 million Chinese.  Things got ugly people started eating each other started eating rats. They would kill people to eat them. Some crazy parents would kill and eat their own children. 

human body parts eaten during chinese famine

Eventually they figured out that the sparrows would eat locust and keep the population in check so the crops would grow.  That was Mao’s bad  so he then changed the campaign to kill  rats, flies, mosquitoes, and bedbugs.  It’s crazy how one species taken out of the food chain can affect things so bad.  Some of the people that died were kept hidden from the government so families or friends could continue collecting their ration of food.  The bodies would just start rotting away and hungry people would have to fight rats to eat the decomposing corpses.  Eww that shit is gross but you got to do what you got to do. 

 

 

Updated: March 25, 2016 — 9:40 AM
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