Sunday, July 20, 2008

Super Deluxe Jam Packed Sunday Edition

This is the New York Times of blogs today. Get yourself a cup of coffee, make sure you’re in a comfortable chair, pack a light snack, and get ready to read.

I provided links, pictures, and everything. And the links, by the way, go right back to noted historian, bon vivant, and all around nice guy, me. So you know they are trustworthy, and more or less honest.

Today, I need to ranttalk about a very serious subject, economics. I promise to not be as boring as your high school teacher or college professor.

The reason I need to explain economics is our economy is going into the dumper, because the overwhelming majority of people have their eyes glaze over when the subject comes up.
First, you have been lied to by every person who ever explained economics to you. Except me, because I don’t lie. Ok, maybe that one time, but I swear I won’t do it again unless it suits my needs.

This entire economic epiphany hit me last year, around November, when my toaster broke. That small event turned into ToasterQuest 2007.
I love my toaster

You can relive the drama here:

But this isn’t about toast, which is one of my favorite subjects. It’s about economics, which is one of my hobbies. Ok, I do have geek tendencies.

A few years ago, some big economics lying sack of crap expert announced that we were moving towards a service economy, and that this was a good thing.
Everyone rejoiced, imagining that they would remain a small cog in the giant economic machine, but now would be a cog with clean hands and a tie. Maybe even an ascot for the more nattily attired. Yes, life would be grand.

But the economic theory reminded me of the South Park Underpants Gnomes. Their economic plan was as logical as turning us into a service economy.


Here’s the problem: as we send production jobs overseas, we now have more of our neighbors seeking work in the service economy. Rather than have X factory workers, and Y service workers, we now have X+Y seeking service positions. Just spend 5 minutes studying economics and it is obvious that supply and demand controls price. Which means, simply put, more workers than jobs means lower wages for each of them. Sure, that means lower prices, but if one doesn’t have the ability to earn a wage, how can one buy all the cheaper crap available? And, thanks to technology, even service jobs are being sent overseas.

For those algebraically inclined, the formula would be X+Y-Z=

We ship raw goods overseas, and they come back as finished products. Doesn’t sound like a big deal until one understands that we get a dollar, and send back 5. This will eventually cause cataclysmic economic problems.
Economics is much simpler than it seems. Truly. Spend a little time and think it through and study it before voting in November. Listen to the candidates, especially the local ones. Test them. Make sure they know your concerns, and when they give you poop for answers, call them on it. Hey, if they say anything to you, mull it over.

The average politician will try to convince everyone he’s

When he’s really

Disclaimer: No slimeball politicians were injured in the making of this post. Sorry.


Simon Jester said...

Which is why, during my administration, every American will receive very special "insider" prices on their next car!

Plus I look like hell in a full beard.

Bradley said...

You said it all in a nutshell. Amazing how easy things really are.

shyne said...

Such a simple concept yet so difficult for many to grasp.....or, maybe accept is a better word.

I agree with we move towards November (in the US), I hope voters will consider what they're being told by the candidates, scrutinize it carefully and apply "common sense" to their positions.

Good entry!

Randall H. Miller said...

Nice post.

"Benny has a way of saying' thingz so I can understand themmmm." - Forrest Gump


Chat Blanc said...

Why weren't you teaching my econ courses in college? I might have retained a bit more, cuz your pictures and graphs are WAY MORE interesting! :)

Da Old Man said...

@ Don: That's why you have my vote

@ Bradley: It really is. Economists try to make it sound difficult so they can have jobs making more than you or I ever dreamed of.

@ Shyne: True dat


@ Sandy: I slept through economics 101. All I remember is the Secretary of Agriculture's name was Earl Butz.

Anonymous said...

And what's more, it's excessively wasteful of fuels to get them there and back, thus contributing to global warming - especially if said goods are 'shipped' by plane. I know much goes by sea, but some has to go by air. Apparently, Scotland now ships shrimp to the far east somewhere to be hulled. WHAT??? WHY???

Local labour forces miss out, and you run the risk of things not actually being done as you like them because you ain't there to supervise. Quality control doesn't seem to exist in some of the countries we send stuff to.

Da Old Man said...

@ jay: And one more think. Thinking globally, because other countries don't have the standrads that we have for pollution controls and safety on preparation, we are at risk. Look at all China has to do to try to clear the skies for the Olympics. Does anyone really believe that poisoning the environment of China helps us in any way?

Da Old Man said...

Ooops. One more thing. I have fat finger syndrome. :)

shyne said...


lot 2 learn said...

Great explanation and examples. The more people that understand the problem's, the more of an outraged voice we will have.

Anonymous said...

Love it, love it, love it!
I couldn't have said it better! :)

savvy said...

I've been in a very, very angry, cranky mood all day, thanks for making me chuckle (although it's the chuckle of the cynically sad).