True Economics

Long ago, a man saw a need for socks. People were buying them, and buying a lot of them. If stores were selling a lot of them they must have a need to get more of them from somewhere. And they did. So he went to the town bank. He spoke with a man he had known his whole life. He told the man about this need, and the man agreed that where there was a need, it should be filled. So he loaned the first man the money to start a sock making factory.

The first man built the factory on the outskirts of town. He gave a job to everyone that needed one. He used the best quality materials, treated his workers well, paid a living wage, and soon his business took off. It did so well that within the first year he was able to give jobs to people from the surrounding towns too.

Understanding that no man is an island, and that the key to maintaining wealth is to preserve it, he continued paying a living wage to all of his workers. He lived in the biggest house in town, but he knew that unless the other houses were nice and neat, his house wouldn't hold it's value. All of the kids in town went to school with his kids. So he also provided health care for his employees because he knew that if they or their children became sick it would impact his business and his family too.

The town prospered and grew, and word of his success spread far and wide. Stores across the land proudly sold his socks. And people noticed.

The bank man that loaned him the money had recently joined a group of other well-monied men that called themselves 'investors'. And they saw great potential in the sock factory. The sock man's children were now grown, and none had even the slightest interest in staying in the sock business. So when the bank men approached him with a new idea, he took the deal. The idea was simple: Lots of people had loaned a little bit of money to the bank men. The bank men took that money and bought the sock factory, confident they could make a profit for themselves and the people that had lent them money.

And they did. The factory kept churning out more and more socks. The sock factory man retired and lived nicely on a beach somewhere, and the shareholders that now owned the factory were making money for doing nothing. It was the perfect. Until the threading machine broke. It was the biggest machine in the factory. It had run for 40 years without so much as a hiccup, that is until it suddenly seized. The manager of the factory began to collect quotes for repair, but the machine was too old and parts weren't available. A new machine had to be purchased, and due to inflation and technological advances, it cost more than a month's payroll.

The bank men knew that they couldn't reduce the payout to the shareholders to cover this cost. If they did, no one would ever loan them money again. But there was good news. By 'investing' more of that shareholder money in the best machine available they could immediately reduce their staffing needs by over 20%. When they still needed more cuts in order to protect themselves from a loss one of the bank men proposed lowering the wage for new workers. After all, this was just socks. Anyone could do it, so why pay more than they have to?

Immediately payroll decreased another 10%. And if that was just part of the normal turnover, why were they paying the 60 year olds who had worked their 40 years so much money? Old people can't do as much, and they had just learned that young people come cheaper. Another of the bank men had the idea to force the older workers into retirement. In the past, retirees had always been given a pension, but would the shareholders tolerate paying someone not to work? Of course not, so that was cut. And just like that, payroll was low enough to cover the cost of the machine...for now.

This pattern continued for many years. Eventually everyone at the factory was making the least they could possibly make, and the town was worse for the wear. All the local stores had closed because no one could afford to shop there anymore. The factory no longer paid for health care, and because sick time was limited to 6 days a year children often went to school ill, simply having no other place to go. With the health care gone, the hospital couldn't stay. With the stores went the other jobs, with the jobs went the landscaping companies that kept the yards looking nice, the repair companies that updated the houses, and the restaurants and parks that helped support tourists and other visitors. Since the owners of the factory didn't live in the town, or even know they owned part of a factory in many cases, no one who could stop it was there to witness what was going on.

Then one day, one of the brothers of a bank man returned from a vacation in a country called China, where he had seen the most marvelous things. But he never went to the Great Wall, or the Forbidden City. He spent his whole trip in a factory. He quickly assembled all the bank men, who now referred to themselves as the 'Board of Directors', and excitedly related what he had learned: For less than the cost of one month's payroll, the whole factory could be moved to to this place called China. Then, for less than the cost of the next months payroll, it could be operated for an entire year.

The shareholders, not one of which lived in the town of course, were delighted. Dividends could increase by $.05/share/month, but that was enough because, after all...it was free money for them, so the measure passed a vote.

The factory was shuddered and relocated 15000 miles away. The town? It's gone now. The bank? It's one of the biggest in the world. 2 years ago they were bailed out by the taxpayers of their country when bad loans got called in en masse. But this year they're back. They posted a record profit and didn't pay a dime in taxes.

Happy Tax Day, America.
    

Tasty Thoughts

Do you love your dog? Your cat? Your parakeet? Your pygmy marmoset? If you're like most people in a developed, first-world country, you do. But how much do you love them? I say there's a good chance that you love them too much. And not just you lonely sheep farmers, I'm talking to you, middle America.

Now animal abuse should not be tolerated.  The companionship of an animal can be invaluable, and is to millions of people across this planet. Animals do a lot of good, chiefly because they bring happiness. Furry little packages of happy. That's so cute I just threw up in the back of my mouth a little.

But every time I hear someone call their dog their "baby" or their "kid", I want to stamp their skull into the pavement. Too violent? Let me qualify it: The person's skull, not the pet's. Foreigners, take note that it is now okay because in the US of A we value pets over people.

You can interpret your own damn statistics. Isn't it enough I'm providing them for you?
-45.4 Billion.  That's the number of dollars spent on pets in the USofA in 2008
-62.6 Billion.  That the number of dollars spent on public education in the USofA in 2008. All of it.
-5000.  The estimated number of animal shelters in the USofA
-1500.  The (rough) number of shelters for abused women/children in the USofA
-$6.8 Million. The amount of Michael Vick's 2-year deal with Philly, signed in 2009
-80,500. The number of people Michael Vick's salary could have saved from homelessness

In 2006 animal rights activists tried to block an oceanic wind farm from construction off the coast of California because it would disrupt the migratory paterns of a nearly extinct species of bird. 

Birds are food. Food is something we can't live without. Energy is something we can't live without. The logical solution?  Eat all but 2 of the birds - one male, on female. Feed the rest to those battered women and homeless kids that we just don't give a shit about. Then put the remaining birds in a zoo where we can all marvel at them and pine over their sad fate. Our kids can watch their bizzare mating practices and kackle with glee. The birds can do it a bunch, then our grandkids can point and kackle at their kids. Which we will be able to do, because we didn't do something stupid like risk our own continued survival to protect a species dying of natural causes. Eff you, California. Don't come crying to me when the San Andreas Fault decides to shake your appletini's for you once and for all!

Animals have their place in this world. We need to recognize where that is: Under us in the food chain, but not under our boot. It's time for logic, reason, and rationality. It's time for real, honest thought.

And your pet is not a child. Well, not your child anyway. Weirdo.

New and Improved! Better Tasting! Fortified with Vitamins and Minerals!

So I kept up with this really well for a month or so. Then I moved, had a bunch of other crap happen, and kind of fell off. Looking back over the posts I see some commonalities and differences: some are really great, some are pretty crappy, some are funny, others are hostile, some are easy and some are trying too hard. But they're all too long. So brevity is the name of the game now. I think this will represent an improvement. And I just heard a small sigh of relief (looking at you, Jackie). There may still be an grand essay from time to time, but I'm not in college anymore, so don't count on it. I will contribute every day that I can and you are invited to contribute as well. There may also be a migration over to word press in the near future, more to come on that...umm...in the future...
Today's thought: Glenn Beck got kinda'-fired from Fox News. Maybe they are moving away from divisive and erratic hate speech? Or maybe people really aren't that nuts? Or maybe P-Diddy was right all along: it really is all about the Benjamin's. Baby. Either way, it can't be anything but good. Maybe all of these guys and gals are on their way out the door. Maybe we'll have real news again one day. As much as my liberal friends decry the Fox News, there are channels and shows that pander to the liberal audience as well. They are just as much a part of the problem. Information should never be beholden to any interest but its own: being known.

This psuedo-firing can go in the right direction for all of us, but it needs to be a demand by the people and for the people. I leave you with a thought that I happen to think is pretty freakin' excellent (and relevant):

"A general dissolution of principles and manners will more surely overthrow the liberties of America than the whole force of the common enemy. While the people are virtuous they cannot be subdued; but when once they lose their virtue then will be ready to surrender their liberties to the first external or internal invader."
-Samuel Adams

What have you people done????

Damn it's great to be back. It's been nearly 2 months, but get over it. I've been busy. Beyond busy. I'll do my best not to let it happen again, but it wasn't really my choice this time either. So dry your eyes, and let's begin.

To recap what I've missed: The Middle East is in chaos, the rights of women in America are being viscously assaulted, civil servants are being demonized, the rich are getting richer, the poor are getting poorer, the Republican Party has started the circus side-show roll call for 2012 presidential candidates, education funding is being gutted, Japan is pretty much done for, the global economy may actually be getting worse, houses won't sell, corporations won't invest, the US is engaged in 4 wars that we can't afford, the Hope and Change Guy seems to be offering neither of the two, I'm sure there are things happening in Europe too (but let's face it, we don't really care), and on top of it...the planet we rely on for survival seems to be shaking us off like a bad hangover.

F*ck.

I'm gone for less than 40 days and you guys let this happen? It will be a long time before I feel comfortable leaving you to your own devices again. Let's address it all, shall we? Someone's got to clean up this mess.

The Middle East - it's long overdue for these guys and gals. Let's just hope it all goes in the right direction when the dust settles. Lots o' pundits asking why it isn't happening here. Answer? Running water. Most of us still eat pretty well, still have access to entertainment, basic freedoms haven't really been hit any harder than Bushy Jr. hit them, and we like blowing shit up. But above all, we have sinks toilets and showers. When that stops, the rich are screwed. Until then, volunteer in your community for a few hours a week and vote. Do what you can when you can.

Pro-Life v. Pro-Choice - one day I will address this in a poignant essay that will be reprinted in magazines, newspapers, and aggregated headline feeds across the western world. Today is not that day. Today I will point out that abortions have been happening since ancient Egypt, and probably before then too. Why make a woman do this in a back alley with a coat hanger? You can't stop abortions, and with modern pharmacology you probably won't even reduce them, you'll just make them less humane, which in turn will affect the fetus even more negatively. The only thing worse than death to you religious types is a slow and painful death. Until my essay is composed, please see Freakonomics and The Cider House Rules for more comprehensive emotional and rational reasonings.  

Rich getting richer v. poor getting poorer - Stratification limits opportunity. This is going to screw us all over. I say this from my comfortable house in my quiet and crime-less suburban neighborhood. For you Reaganonimicists, trickle down isn't working. For you socialists, get better at PR. The American Dream has us all convinced we are just temporarily not uber wealthy. 95% of the world makes less than I do, and I'm not even in the top 25% in the USA. Does this situation seem tenable to you? Me either. Which do you think is temporary? Yup - the lots of money one.

2012 - The best hope that any of us have for the 2012 election is that an act of god/buddah/gaia/whatever will delay campaigning for as long as humanly possible. The shorter it lasts the better we will all be. I'm thinking October 2012 will be the next time I flip to a news broadcast on TV.

Education funding - We need teachers. They deserve to be paid very well. If you don't believe this, please find the nearest gun and chew on the barrel while pulling the trigger. We all need food, water and air, and you don't deserve any if you don't recognize the value of public servants.

Japan/The Earth - Show Japan some love. Nuclear power is still the best thing we've got (which sucks, but is true), and we need the Japanese to continue advancing technology for us, cause we're not getting it done. Global warming is real, it is happening, it is getting worse. Take a bus, walk to the store, use a fan in lieu of the A/C or an extra blanket in lieu of the heat. Cut back by choice before we have to cut back by force.

Houses/the economy/corporations - It's time to go medieval on these corporate punks. Hire. Hire and people will have money to spend on the crap you sell. Like houses. It's win/win. If 'trickle down' is so successful, the turn on the spigot, bitches. If it's not, which seems obvious at this point, let's do some redistribution in the form of hiring. Don't want the feds to do it for you? Do it yourself. The best defense against socialism is successful capitalism. Go. Hire. Win.

Obama/War - The only reason the supporting Libya is coming under fire is because we are over-committed elsewhere. I'm disappointed. I expected more from you, sir. As did everyone else that cast their vote for hope and change. You have at least a year and a half left and I hope you spend it wisely.

Europe - whatever. I still ask, and have not received a satisfactory answer: If America is better than everyone else in the world, why do we work so many more hours and years of our lives to come out with less for ourselves and each other? I want health CARE not health insurance. I want to retire someday. I want what so many others have, and I work for it, but will likely never receive it. Are we resigned to mediocrity? It seems so.

More later? Yes. Until then, think.

Actionable Thoughts

As many of you already know, the State of Texas has somehow lost $25 billion. Wouldn't it be nice to have that kind of money to lose? And of course, they will build the bridge over the deficit on the backs of the poor and our children. Why tax an oil company when you can stick it to the kids?

How funny that the same people that decry running federal deficits because of their impact on the children turn around and defy the constitution of Texas by allowing education funding to dip below mandated levels, thereby screwing over the same children they claim to protect.

This is beyond hypocrisy. It's what urban dictionary aficionados would refer to as bungholery. It's posturing. It's arrogant, needless, shortsighted, and dangerous.

So they want 13% cuts in a state that already falls $6 billion short of the funding it needs to properly educate it's children. How can we allow this? As a Democrat, you cannot allow your children's future to be stripped to cover a deficit the Republicans built. As a Republican, you cannot allow the constitution of the State of Texas to be defecated upon. School funding is protected by the very document that gave life to this state. The document that protects us, empowers us, and defines us. Both sides of the aisle should be up in arms. If they are not, then they are not doing their job - they are not serving you, their constituent.

Yes, there are reforms that are badly needed to school funding. Yes, there are cuts that could be made, need to be made. But these cuts must be made as a result of vision and strategic planning, not blind desperation.

Those of you who think this will not impact your life are sadly mistaken. If this passes, what's next? Next year the deficit will be even larger, this has already been stated as fact. Where do the cuts come then? Do private schools start paying taxes? Do magnet schools get shuttered? Do football programs get the axe? Do teacher/student ratios change? Do we start hiring teachers based on price instead of quality? Do we lose great educators and administrators?

If this measure passes, the question becomes "when", not "if".

America leads the world in creativity, and that's about all we have left. I don't mean that as an insult, just a reality check. American minds created the iInternet. Google. Facebook. Twitter. And the iPhone. To cut funding from Art programs, and other special programs, is to cut our future off at the knees. We are moving into a future where creativity will be a prerequisite to maintaining the most basic of survival needs. Competition for virtually everything else is already slipping beyond our means. We cannot compete in the labor market without sacrificing quality of life. We cannot compete in the service sector like we used to. Financially, we were brought to our knees and have had trouble standing again. But we're still the best, because no one thinks like we think. And we honed these skills in our public schools.

We cannot allow school funding to be cut. To do so is to allow our lawmakers to rob the future to pay for the past. This is the simplest thing you will ever be asked to do for your children and your state: Make a call. There are no speeches to write, no arguments to have, no punditry or pontification. It's simple: "Vote to cut school funding, and in the next election I will vote against you. Vote to preserve it now and forever, and you will have my support in the fall." That's it. That really is all you have to do. Leave a message with the secretary, the voice mail box, or the volunteer answering the phones.

Go here: http://www.fyi.legis.state.tx.us/

Find your rep. Make the call. Force change.

Then go here to join the cause and spread the word:  http://www.causes.com/causes/576960

Thanks for reading. If you disagree, then return your high school diploma, which will in turn nullify your college diploma. Then go tell your HR rep you lied on your resume, and enjoy life in the gutter.