Thursday, June 22, 2023

Its all about that competition! 🙂

Capitalism isn't just about making money. It's also about competition. When lots of people are trying to sell the same thing, they have to work hard to make their product or service better than everyone else's. This means that consumers get better products and services at lower prices.

Wednesday, March 20, 2019

What's at stake in an economy,

George Osborne, a British politician said it best :

George Osborne 
"There are those who are trying to create an anti-business culture in Britain - and we have to stop them. At stake are not pay packages for a few but jobs and prosperity for the many." 
                     Remember what's at stake!

Where are the jobs?

In a good economy and in a bad economy people seldom think about all the jobs that do exist. If you are in a restaurant and asked to name some jobs around town, you probably would say the waiters, cooks, and janitors. Those jobs can be seen right inside the restaurant and so they are known about.
But wait until you go to grab a straw and some napkins , do you think about jobs then? No. Yet a truck driver has a job to bring those straws and napkins to the restaurant. Also if a oven or refrigerator breaks, a repair man is called to fix it and his job also exists.

In Capitalism there is the seen and unseen. In the restaurant the customers benefit from customer service that can be seen as well as deliveries made to the restaurant that the customer doesn't see.
And the beauty of Capitalism is that all those things happen without a single person or politician knowing how to make a perfect restaurant . Because under Capitalism the truck driver wants money so he delivers utensils to the restaurant, the server needs money so he goes to work there, and the janitor wants to make money so he shows up to clean the place.

In their quest for capital (money) they all make the restaurant run smoothly with no instruction from a Government bureaucrat. Think about that, it's fun learning Capitalism.

Saturday, March 09, 2019

A lesson in wealth

Let's say a child with wealthy parents has expensive toys like an iPad, a new laptop, and a big screen TV. And lets say a child with parents who aren't wealthy has inexpensive toys like dolls, toy cars, and a coloring book.
Now, switch the toys. Now the poor child has expensive toys. Will he become rich now? Will he be able to purchase expensive things from now on? No. Why? Because the rich child already had wealth in his family and the expensive gifts were just symptoms of that wealth. Because the parents created wealth, they were able to enjoy pleasing their child with nice gifts.
We have politicians today that want to use symptoms of wealth (Like expensive schools, nice housing, and nice cell phones) to help the poor become wealthy. And just like the child who is poor, people are given things that are symptoms of wealth but not wealth itself. So we can expect that many of those people who receive those goodies wont be lifted out of poverty.

Sunday, February 24, 2019

Can cost exist without our money?

 Did you know when we have a steady supply of money as well as times when bad luck takes all our money, we STILL have costs. And every night and every day we will continue to pay costs even if we lose every penny of our money. This life gives us time for productive work as well as time for leisure and in both cases you are paying costs.

So how do we pay costs every day? With decision making. Right now you are paying a cost for reading this blog. The cost is whatever you could be doing instead of reading the blog. Because you are sacrificing that other activity in order to read this blog. So to see economics teach you something about life, go into each day reminding yourself of the costs you are willing to pay with your decision making and you'll begin to think about economics more often and how fun it is to learn!