Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts
Sunday, February 2, 2020
Global Transformation
Armed only with an analytical mind and the ability to speak in metaphors, I've relied on my education and experience to write about global political and economic events. To focus on Emerging Economies, and to formulate a realistic approach to problem solving.
My main concentration has been closing the wealth and the income gaps in emerging nations and shedding light on China's influence on the global economy,
My blog has been an unfunded, unsupported, non-profit web log.
In addition I posted several PowerPoint presentations on various topics: Emerging Nations, The Environment, and Globalization.
Now I am attempting into expanding into more effective efforts: videos and podcasting.
I would like to upgrade my technology
Create a more effective presentation
and cover expenses that have been neglected.
Relying on the Bauhaus philosophy, form follows function, I created a minimal budget.
I set up a GoFundMe account but it is not functioning at the moment. But only for the second time in the past 2 months.
Here is my GoFundMe Link: GoFundMe
Alternative
Robert Asken
Box 33
Pen Argyl, PA 18072
Thank you.
More:
I often hear about 30 under 30. I am looking to empower 60 over 60. Those with the experience and education to go beyond raising awareness to the level of focusing on substantive gains.
,
Thank you for any support you my give to my efforts.
Sincerely,
Bob.
Robert Asken
Box 33
Pen Argyl, PA 18072
Wednesday, September 18, 2019
Economic Survival--Long-Term
When I wrote that China elevated (at various points)
300 Million
500 Million
700 Million
people from poverty to the middle class, I pointed out China created a
Middle Class
Consumer Class
Investor Class
I also pointed out that China created cohesion among the Chinese people. China created a buy-in. A vested interest in the success of the Chinese economy.
This brings us to Henry Ford.
Ford doubled his employees' salaries and cut the work week to 40 hours. He, essentially, created the Middle Class.
Ford workers could now, and subsequently buy
A Ford
A Washing Machine
A Refrigerator (Ice Box)
A Radio & Eventually
A Sears Roebuck House (Some assembly required.)
By creating a Middle Class, he created a Consumer Class and an Investor Class. He gave the American worker a vested interest in the success of he American Economy.
Don't get me wrong; the labour movement was ugly, violent, fraught with private armies, sabotage, strikes, lockouts, scabs, strike-breakers, and the like. Nonetheless, the strong Middle Class meant a Strong Economy. A strong Economy meant a Strong America.
The Middle Class is the Economy.
Now, The American Widget Company is not going to hire one additional widget maker, until there is an order for one widget more than the company can make when operating a maximum capacity and optimal efficiency.
They also know:
If you grow faster than your market, you tie up capital.
If your market grows faster than you do, you lose market share. Therefore, company growth is predicated on a rising demand curve. And when more people buy stuff, they make more widgets, increase their revenue, invest their returns, and also benefit from revenue enhancement.
China: Rising middle class, rising economy.
India: Rising middle class, rising economy.
Russia: Stagnant middle class, stagnant economy.
America: Declining middle class, follow the path of the trajectory.
One reason I wrote,
Tax policy to increase wages $5 an hour. Now! was to show the benefit to increasing wages with a tax policy that incentivises, business increasing wages with serious tax benefits for doing so, and subsequent economic benefits as the programme proceeds.
If you want to close the gap, you redistribute the money.
Henry Ford did not redistribute the wealth. He redistributed the money.
Wealth is what you have.
Money is what you make.
If you own a $100 Million Factory, but can't run a business, you make earn $50.000 a year.
If you own a $500 laptop and pay $100 for an internet connexion, (A service, not an asset) might earn $1Million a year.
The first example, you have wealth but little money.
In the second example, you have little wealth but make a lot of money.
If you are responsible, you save half your income, and in 20 years you have $10 Million.
If you spend it on loud noises, bright colours, and shiny things, you end up with nothing.
In the first example, you may end up liquefying assets and come out with, say, $50 Million. Wealth is what you have. Money is what you make. If we want to close the gap, we redistribute--Read: Reinvest--the money, create a Solid Middle Class, and let the economy help people create wealth.
Further reading:
Tax Policy to Increase Wages $5 an hour. Now!
If You Really Want to Close the Gap
Powell's Testimony House Financial Services Committee
If you're really interested and energetic & ambitious:
Hillary Redux
Sincerest regards,
Slim.
If you find anything here to be helpful, please don't hesitate to send me a really tricked-out Mac Book and to tuck a few dollars into the envelope along with the thank you car.
Slim.
Robert Asken
Box 33
Pen Argyl, PA 18072
Copyright © 2019 Robert Asken
All rights reserved.
Wednesday, April 12, 2017
Where We are Going
What is happening globally with migration on one of the basic laws of physics.
I illustrated this in my ppt presentation
Solving The Global Crisis
I pointed out that Russia is engaged in Economic Warfare.
The Visible Hand
and
Mr. Putin's ETO
China knows it will not stay in business very long if it puts its best customers out of business. China will not harm Western markets.
As India transforms, India will have a more efficient handling of crops. No longer will food rot on the vine or in the field because there are difficulties in bringing the food to market in a timely manner. India will embrace the technology that will be crucial to the future of nations.
Africa will embrace the models of Industrialised Nations:
Capital Investment,
Economic Stimulus,
Economic Development, &
Growth.
Capital Investment + Economic Stimulus = Economic Development + Growth ~ Slim's Paradigm.
Forming an E 20 Group of Nations
Solving the Emerging Economic Crisis
I have predicted that Plastics will replace wood and steel as a more efficient and cost-effective way of building things.
Plastics:
But the largest concern is the control of resources:
Who controls which resources will be crucial to survival. This is explained in
"Economic Soft-War"
This is why Globalisation is so important.
Protectionism Isolationism Nationalism
Are the Axis of Evil that impedes or prevents Solving the problems of Famine, Pandemics, and Global Economic Recessions and Depressions & lead to Civil Unrest, Genocide and War. Support Globalisation.
Thank you for your interest.
Sincerely,
Slim.
On LinkedIn
Slimfairview@yahoo.com
Slimviews@gmail.com
Bob Asken
Box 33
Pen Argyl, PA 18072
Copyright (c) 2017 Bob Asken
All Rights Reserved.
Monday, December 23, 2013
Are We Ashamed Yet?
"The haves are increasing arithmetically. The have-nots are
increasing geometrically." The Quotations of Slim Fairview.
"The real problem with the gap
between the haves and the have-nots is not the number of dollars between them
but the number of people.” Slim
Fairview.
True Story.
Scout Camp. Summer: Circa 1964.
Our Troop was at scout camp.
Long story short: we brought a watermelon
with us. During the week, one of the
Dads, brought up a watermelon. Now we
have two.
Saturday came and we played softball against a neighboring
troop. The bet was a watermelon. We bet on of our two watermelons agains their
only one. It was a sucker bet. We had heavy hitters in our troop. Needless to say, we won.
When it came time to pay up, the other team’s melon was nowhere to
be found. One of their honest and
respectable scouts told their scoutmaster who’d hid the watermelon. The perpetrator, having been identified was
being questioned by the scoutmaster. He was being given the opportunity to
fess-up. He was slow to do so.
Then (Back in the day when words carried some weight, when words
meant something) the scoutmaster, towering over the offender, and hovering over
him, said, “You get that watermelon or your name is Mudd. Do you hear me? Your name is Mudd.”
The formula for True Confession Magazines: Sin. Suffer. Repent. I could actually feel that scouts shame. He went to get the watermelon. Now we have three.
At this point I must point out that I truly do not remember if our
scoutmaster and or the assistant scoutmaster were there. I should also disclose that I do not like
watermelon. I always associated them
with the anarchy of youth: spitting seeds, flinging rinds, and they are messy
and sticky and they drip everywhere.
I must also disclose that I put up a mental block. I cannot recall whether we did or did not
invite the other troop to the victory party.
I believe that we did not. And
this leads up to my point.
Inviting losers to join the victory party is dicey at best. Even
for skilled diplomats. And we were only
adolescents. True, we did “the cheer”. “Two, four, six, eight, who do we appreciate…” But that is a hollow gesture at best. Also, it should be noted that not inviting
them is bad grace. And with that, I
could remember feeling my own shame.
Now, the whole point of this article:
Take out scout troop and put in emerging nations. Take out watermelon and put in natural
resources.
Are we ashamed yet?
Warmest regards,
Slim Fairview
Copyright © 2013 Slim Fairview
All rights reserved.
Thursday, October 13, 2011
PLASTICS
"I have one word for you, Ben. Plastics."
That line, from The Graduate, with Dustin Hoffman, has been cited as an indicator of a world that was shallow, superficial, and--well--plastic.
Today, PLASTIC may well be a cornerstone of Emerging Economies Development. Literally.
Into the Shredder.
Into the Grinder.
Into the Blender.
Into the Extruder.
Voila. Synthetic Railroad Ties.
This will save trees.
Cut down on Shipping costs.
Cut down on Labour Costs.
Provide Jobs.
And....that is a product that is recyclable. BONUS!
If heavy, ugly pipe can be used to move oil and (dare I say it--combustible gas) Some plastics can be used to move water to:
Irrigate Crops.
Water the Livestock
Quench a thirst.
Promote Hygiene
You know? Good Stuff.
Plastic can be used to build
Bridges
Dams
Small Factories
Canals
Carts
Sandals
Shelters
Homes
Plastic Products won't dissolve into the environment.
Can be recycled.
Are easy to form into products.
Can create jobs in SMEs for a growing population.
Of course, there are people who hate emerging world people but can't come out and say it. Therefore, instead, they will launch an assault against the industry on ideological grounds, environmental grounds, or--most detestable of all--competitive grounds (If you make stuff from other stuff, you don't want people making stuff from plastic.) with a celerity unmatched by those who are trying to solve the problem. (There is a sentence in there somewhere. Some assembly required.)
Oh, and by the way, this fits into my suggestion that Big Oil invest some of its profits into other areas. One was Green Energy. Remember? I suggested they buy Solyndra and run it as a business and not as a symbolic gesture? Well, Big Oil ByProducts include....wait for it...Plastic!
Sincerest regards,
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
That line, from The Graduate, with Dustin Hoffman, has been cited as an indicator of a world that was shallow, superficial, and--well--plastic.
Today, PLASTIC may well be a cornerstone of Emerging Economies Development. Literally.
Into the Shredder.
Into the Grinder.
Into the Blender.
Into the Extruder.
Voila. Synthetic Railroad Ties.
This will save trees.
Cut down on Shipping costs.
Cut down on Labour Costs.
Provide Jobs.
And....that is a product that is recyclable. BONUS!
If heavy, ugly pipe can be used to move oil and (dare I say it--combustible gas) Some plastics can be used to move water to:
Irrigate Crops.
Water the Livestock
Quench a thirst.
Promote Hygiene
You know? Good Stuff.
Plastic can be used to build
Bridges
Dams
Small Factories
Canals
Carts
Sandals
Shelters
Homes
Plastic Products won't dissolve into the environment.
Can be recycled.
Are easy to form into products.
Can create jobs in SMEs for a growing population.
Of course, there are people who hate emerging world people but can't come out and say it. Therefore, instead, they will launch an assault against the industry on ideological grounds, environmental grounds, or--most detestable of all--competitive grounds (If you make stuff from other stuff, you don't want people making stuff from plastic.) with a celerity unmatched by those who are trying to solve the problem. (There is a sentence in there somewhere. Some assembly required.)
Oh, and by the way, this fits into my suggestion that Big Oil invest some of its profits into other areas. One was Green Energy. Remember? I suggested they buy Solyndra and run it as a business and not as a symbolic gesture? Well, Big Oil ByProducts include....wait for it...Plastic!
Sincerest regards,
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Friday, September 23, 2011
The US: Oil, Energy, Housing
US: Oil, Energy, Housing
The Economy has now achieved the mystic quality of the weather: Everyone talks about it. No one can do anything about it. We prepare for disaster. We plan for cleanup. We ride the storm—many lose everything.
The Economy is not the Weather.
“We are going to maximize the impact of our recue fund by leveraging our resources.” [A quote from a EuroCrat published in the WSJ.]
“Having lost sight of our objective we will redouble our efforts.” (My Finance Professor)
“A stitch in time saves nine.” Unknown
You cannot create a plan and sell a plan based on clichés, slogans, and platitudes.
My plan for housing:
The bank stops the foreclosure and rewrites the mortgage with affordable payments which include a balloon payment down the road; for example 2018.
The dead wood comes off the books. The revenue stream continues. The asset stops deteriorating. The bank has money to lend. The municipality maintains a revenue stream. The population decline is abated.
You think my mortgage plan won’t work, eh? Well, “BofA reaches deal to sell….” WSJ: 9/23 C3. Google it, it builds character.
Oil and Energy
The other day, referencing Solyndra, I stated, “Money will not replace management.”
Big Oil buys Solyndra—a metaphor. Big Oil invests in Green Energy, or Clean Energy. What happens? Big Oil avoids the disaster it suffered from its misalliance with Big Auto.
Big Oil and Big Auto were once very cozy. Times change. People began to demand smaller, fuel efficient cars. (Less oil) People began to demand electric cars. (Less oil) Big Auto said, “It’s us or them.” Well, General Strategy said, “Make smaller cars. Develop electric cars.” The rest is History.
Soon, Big Oil will find that General Energy will betray them as well. To Big Oil: You are no John D.
What to do?
Well, the big understanding is “demand.” Okay, here goes. Let’s look at demand.
Plastic Trash Bags (I heard they are bio-degradable now.) Food Containers: “Don’t get mad, get—“I promise not to lose this food container.”
Why the quote, the commercial. Because this is what America buys—Petroleum By-products. (True, soon gasoline will be the by-product, but I digress.)
The demand is there. The demand for energy is there also: residential energy, commercial energy. Thus, I propose a multi-pronged solution.
Big Oil buys Solyndra and runs it as a business and not as a symbolic gesture—an homage to the environment. In plain English: Stop Calling it the Solar Energy Market and start calling it The Energy Market. With an efficient, cost-effective means of production with a built in demand from manufacturing petroleum by-products, you will make it, sell it, and use it to make and products from your own raw material.
Big Oil Provides Green Energy to plants manufacturing Green(ish) products.
R&D expands into plastics. (Remember The Graduate? Then it was Social Commentary. Now it is Economic Strategy.)
Use your Lobby Muscle for tax incentives for
a. Producers and
b. Consumers.
Sincerest regards,
Slim
Copyright © 2011 Slim Fairview
The Economy has now achieved the mystic quality of the weather: Everyone talks about it. No one can do anything about it. We prepare for disaster. We plan for cleanup. We ride the storm—many lose everything.
The Economy is not the Weather.
“We are going to maximize the impact of our recue fund by leveraging our resources.” [A quote from a EuroCrat published in the WSJ.]
“Having lost sight of our objective we will redouble our efforts.” (My Finance Professor)
“A stitch in time saves nine.” Unknown
You cannot create a plan and sell a plan based on clichés, slogans, and platitudes.
My plan for housing:
The bank stops the foreclosure and rewrites the mortgage with affordable payments which include a balloon payment down the road; for example 2018.
The dead wood comes off the books. The revenue stream continues. The asset stops deteriorating. The bank has money to lend. The municipality maintains a revenue stream. The population decline is abated.
You think my mortgage plan won’t work, eh? Well, “BofA reaches deal to sell….” WSJ: 9/23 C3. Google it, it builds character.
Oil and Energy
The other day, referencing Solyndra, I stated, “Money will not replace management.”
Big Oil buys Solyndra—a metaphor. Big Oil invests in Green Energy, or Clean Energy. What happens? Big Oil avoids the disaster it suffered from its misalliance with Big Auto.
Big Oil and Big Auto were once very cozy. Times change. People began to demand smaller, fuel efficient cars. (Less oil) People began to demand electric cars. (Less oil) Big Auto said, “It’s us or them.” Well, General Strategy said, “Make smaller cars. Develop electric cars.” The rest is History.
Soon, Big Oil will find that General Energy will betray them as well. To Big Oil: You are no John D.
What to do?
Well, the big understanding is “demand.” Okay, here goes. Let’s look at demand.
Plastic Trash Bags (I heard they are bio-degradable now.) Food Containers: “Don’t get mad, get—“I promise not to lose this food container.”
Why the quote, the commercial. Because this is what America buys—Petroleum By-products. (True, soon gasoline will be the by-product, but I digress.)
The demand is there. The demand for energy is there also: residential energy, commercial energy. Thus, I propose a multi-pronged solution.
Big Oil buys Solyndra and runs it as a business and not as a symbolic gesture—an homage to the environment. In plain English: Stop Calling it the Solar Energy Market and start calling it The Energy Market. With an efficient, cost-effective means of production with a built in demand from manufacturing petroleum by-products, you will make it, sell it, and use it to make and products from your own raw material.
Big Oil Provides Green Energy to plants manufacturing Green(ish) products.
R&D expands into plastics. (Remember The Graduate? Then it was Social Commentary. Now it is Economic Strategy.)
Use your Lobby Muscle for tax incentives for
a. Producers and
b. Consumers.
Sincerest regards,
Slim
Copyright © 2011 Slim Fairview
Thursday, September 22, 2011
EuroCrats: It is Our Policy to Fail
The handling or mishandling of the debt crisis by the EuroCrats proves one thing. The Process is the Problem.
From the IMF we learn that the set of policy choices that are economically viable and politically feasible is shrinking. That is a bold admission.
Further, the IMF acknowledges the market’s negative response but chooses to stay the course. This is wrong.
Still, the bold admission is a good thing. Oftentimes people don’t take bold action until a crisis is impending. Bureaucrats never do.
Now with Belgium, Italy, and Spain heading toward a crisis, why embrace a proven Policy of Failure? One glaring point: A cash infusion into banks that suffered losses due to the debt crisis will only cause the banks to continue to lose what others infuse.
Meanwhile, there is a call for taxpayers to bolster…..! Any call for taxpayers to bolster anything is a lose—lose situation.
If the plan fails, the crisis deepens.
If the plan succeeds, those who pay for the success of others will harbour a deep resentment. If you don’t believe me: Parliament Hampers Merkel Deal Making.
EuroBanks stand to lose €630 Billion. Banks are starting to not trust each other or lend to each other. That is not a good sign either.
The IMF goes on to say that the Global Credit Crisis moved into the Political Phase. Therein lies the punishment for using political considerations to solve the problem in the first place.
Greece and Europe suffer from problems of Austere Proportions.
As I previously stated, “Analysts conceded a €110 Billion bailout for Greece on the assumption that the Greek economy would grow. Then, they called for sanctions to punish Greece because their assumptions were wrong.”
The austerity measures to be imposed by (upon) Greece include a move to reduce public employment.
“There are no unintended consequences, only unwanted consequences.” –Slim Fairview
Such a move will
Reduce tax revenue.
Strain the social safety net,
Negatively impact the multiplier effect; if there is one.
[ http://www.slideshare.net/slimfairview/the-multiplier-effect-4962273 ]
Greece may consider some alternatives
Sell state owned assets [to Greek citizens].
Seek Foreign Investors instead of Foreign Lenders. [Asia. Brazil]
Encourage, promote, and support, entrepreneurship for the Greek people.
The Nanny-State mentality in Europe has less to do with benefits and more to do with business. It is easy for a society to become complacent if the jobs are already there whether provided by Big Government or by Big Business. SMEs provide jobs, growth, economic stimulus, and prosperity. Don’t believe me? The headline in the NY Times reads: India Nurtures Entrepreneurship.
Economic Stimulus by Metaphor
http://slimviews.blogspot.com/2011/06/economic-stimulus-by-metaphor.html
Greece can also follow my prescription for the American housing crisis. Only they may wish to expand upon it—tailor it to Greek needs.
Stop Foreclosures
Rewrite Loans at a lower payment rate
Add a balloon payment. [2018, 2019, 2020]
Will all this work?
Did your efforts fail?
The EuroCrats are Intelligent, Educated, and Experienced.
Q: Why the failure?
A: The Process
The meeting of the minds emphasises consensus. The EuroCrats do not need consensus. The EuroCrats need acknowledgement.
“The fact that you cannot predict the future is not a proper rebuff to the one who tells you to get off the tracks a train is coming.” –Slim Fairview
Sincerest regards,
Slim
Copyright © 2011 Slim Fairview
From the IMF we learn that the set of policy choices that are economically viable and politically feasible is shrinking. That is a bold admission.
Further, the IMF acknowledges the market’s negative response but chooses to stay the course. This is wrong.
Still, the bold admission is a good thing. Oftentimes people don’t take bold action until a crisis is impending. Bureaucrats never do.
Now with Belgium, Italy, and Spain heading toward a crisis, why embrace a proven Policy of Failure? One glaring point: A cash infusion into banks that suffered losses due to the debt crisis will only cause the banks to continue to lose what others infuse.
Meanwhile, there is a call for taxpayers to bolster…..! Any call for taxpayers to bolster anything is a lose—lose situation.
If the plan fails, the crisis deepens.
If the plan succeeds, those who pay for the success of others will harbour a deep resentment. If you don’t believe me: Parliament Hampers Merkel Deal Making.
EuroBanks stand to lose €630 Billion. Banks are starting to not trust each other or lend to each other. That is not a good sign either.
The IMF goes on to say that the Global Credit Crisis moved into the Political Phase. Therein lies the punishment for using political considerations to solve the problem in the first place.
Greece and Europe suffer from problems of Austere Proportions.
As I previously stated, “Analysts conceded a €110 Billion bailout for Greece on the assumption that the Greek economy would grow. Then, they called for sanctions to punish Greece because their assumptions were wrong.”
The austerity measures to be imposed by (upon) Greece include a move to reduce public employment.
“There are no unintended consequences, only unwanted consequences.” –Slim Fairview
Such a move will
Reduce tax revenue.
Strain the social safety net,
Negatively impact the multiplier effect; if there is one.
[ http://www.slideshare.net/slimfairview/the-multiplier-effect-4962273 ]
Greece may consider some alternatives
Sell state owned assets [to Greek citizens].
Seek Foreign Investors instead of Foreign Lenders. [Asia. Brazil]
Encourage, promote, and support, entrepreneurship for the Greek people.
The Nanny-State mentality in Europe has less to do with benefits and more to do with business. It is easy for a society to become complacent if the jobs are already there whether provided by Big Government or by Big Business. SMEs provide jobs, growth, economic stimulus, and prosperity. Don’t believe me? The headline in the NY Times reads: India Nurtures Entrepreneurship.
Economic Stimulus by Metaphor
http://slimviews.blogspot.com/2011/06/economic-stimulus-by-metaphor.html
Greece can also follow my prescription for the American housing crisis. Only they may wish to expand upon it—tailor it to Greek needs.
Stop Foreclosures
Rewrite Loans at a lower payment rate
Add a balloon payment. [2018, 2019, 2020]
Will all this work?
Did your efforts fail?
The EuroCrats are Intelligent, Educated, and Experienced.
Q: Why the failure?
A: The Process
The meeting of the minds emphasises consensus. The EuroCrats do not need consensus. The EuroCrats need acknowledgement.
“The fact that you cannot predict the future is not a proper rebuff to the one who tells you to get off the tracks a train is coming.” –Slim Fairview
Sincerest regards,
Slim
Copyright © 2011 Slim Fairview
Monday, July 25, 2011
We Can Fix the Economy. This is why we don't.
Am I an optimist? Usually. However, when it comes to fixing the economy, the fact that I keep beating a dead horse is more in indicator of my willingness to embrace hopelessness.
The metaphor I created for experts in economics involves this:
One economist works for a company that sells red paint. He says, "If you want to improve your business, paint the walls red."
Another economist works for a company that sells blue paint. He says, "If you want to improve your business, paint the walls blue."
That much may be obvious. The difficulty arises when they cite the statistics.
The Red Paint economist says, "Our study shows that red paint motivates employees. They produce more widgets. Your productivity will go up."
The Blue Paint economist says, "Our study shows that blue paint creates a greater sense of well-being. Your employees will make fewer mistakes and the quality of your widgets will go up."
What each side does not tell you, is that with red paint, the employees work faster, make more errors, and reduce the quality of the output; and, is that with blue paint, the employees make fewer mistakes and produce higher quality widgets, but make fewer widgets and reduce the quantity of the output.
To further the explanation, as most people don't understand economics, I posted several monographs, using metaphors, to explain the concepts.
1. A Primer in Economics.
2. The Multiplier Effect.
3. Economic Stimulus
4. How to fix the economy.
5. Another monograph on the economy
The Several Monographs on Economics will help non-economist visualise what happens in the economy.
http://slimviews.blogspot.com/2011/07/understanding-economics-introduction-by.html
The metaphor I created for experts in economics involves this:
One economist works for a company that sells red paint. He says, "If you want to improve your business, paint the walls red."
Another economist works for a company that sells blue paint. He says, "If you want to improve your business, paint the walls blue."
That much may be obvious. The difficulty arises when they cite the statistics.
The Red Paint economist says, "Our study shows that red paint motivates employees. They produce more widgets. Your productivity will go up."
The Blue Paint economist says, "Our study shows that blue paint creates a greater sense of well-being. Your employees will make fewer mistakes and the quality of your widgets will go up."
What each side does not tell you, is that with red paint, the employees work faster, make more errors, and reduce the quality of the output; and, is that with blue paint, the employees make fewer mistakes and produce higher quality widgets, but make fewer widgets and reduce the quantity of the output.
To further the explanation, as most people don't understand economics, I posted several monographs, using metaphors, to explain the concepts.
1. A Primer in Economics.
2. The Multiplier Effect.
3. Economic Stimulus
4. How to fix the economy.
5. Another monograph on the economy
The Several Monographs on Economics will help non-economist visualise what happens in the economy.
http://slimviews.blogspot.com/2011/07/understanding-economics-introduction-by.html
Regards,
Slim
PS. I am not Paul Harvey. However, I am open to becoming a commentator, columnist, or paid blogger.
If you’ve found anything I said to be helpful, please don’t hesitate to send me one of those tricked-out laptops and to tuck a few dollars into the envelope along with the thank you note.
Sincerest regards,
Slim
Copyright © 2011 Slim Fairview
Wednesday, July 13, 2011
Understanding Economics: An introduction by metaphor
Commentary on Global Political and Economic Events by Slim Fairview. Please also see also http://sidestreetjournal.blogspot.com Please do click the follow button for Slimviews--and please email a link to your friends.
Thank you.
Slim
Thank you.
Slim
As Congress is approaching the solving of the economic crisis in a manner consistent with the layman’s approach to understanding economics, I shall offer a series of monographs on economics aimed at explaining economics to the layman.
I’ve posted these monographs:
1. Economics Illustrated: A Primer in Economics, by metaphor
2. Economic Stimulus, by Metaphor
3. The Multiplier Effect: Illustrated
4. Wolf Blitzer Buys a New Suit or How to fix the economy
5. Will $1,000,000,000.00 Create 7,000 jobs? Yes and no.
6. You Don’t Create Jobs by Selling Blue Paint
Regards,
Slim
PS. I am not Paul Harvey. Still, I am open to becoming a paid blogger, columnist, or commentator.
In the meantime, if anyone finds the monographs on my blog to be especially helpful, please do not hesitate to send me on of those tricked out laptops and few dollars tucked into the envelope with the thank you note.
In the meantime, if anyone finds the monographs on my blog to be especially helpful, please do not hesitate to send me on of those tricked out laptops and few dollars tucked into the envelope with the thank you note.
Sincerely,
Slim
Copyright (c) 2011 Slim Fairview
Friday, July 8, 2011
The EuroVisioning Process: Shared Visions or Divisions
As I've been following the EuroCrats, a few questions have come to mind.
Is there no SOP?
Is there no metaphorical algorithm?
There are cause and effect relationships in economics.
There seems to be one of two possibilities.
That actions in one country (or agency, e.g. The EuroBank) will have an effect on another country's economy, those actions will either hurt or help the other country's economy.
If such actions are helpful, they should be taken.
If such actions are not helpful, then this EuroTopian vision won't work because the policies to benefit two countries are mutually exclusive.
Does no one have a pencil and a piece of paper?
Regards,
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Is there no SOP?
Is there no metaphorical algorithm?
There are cause and effect relationships in economics.
There seems to be one of two possibilities.
That actions in one country (or agency, e.g. The EuroBank) will have an effect on another country's economy, those actions will either hurt or help the other country's economy.
If such actions are helpful, they should be taken.
If such actions are not helpful, then this EuroTopian vision won't work because the policies to benefit two countries are mutually exclusive.
Does no one have a pencil and a piece of paper?
Regards,
Slim
slimfairview@yahoo.com
Copyright (c) 2011 Slim Fairview
Tuesday, July 5, 2011
Will $1 Billion Create 7000 Jobs? Yes and No
Joe the Barber. One man shop.
Customer: Sam
Sam gets his haircut every week.
If Joe hires another barber, will Sam get his hair cut twice a week? No.
If Jack starts going to Sam’s barber, Joe the Barber will hire another barber.
Because Sam is vain, Joe the Barber uses up a can of hairspray doing Sam’s hair. Will he buy two cans of hairspray to do Sam’s hair? No.
However, if Jack is also vain, Joe the Barber now will buy two cans of hairspray. One to do Sam’s hair, one to do Jack’s hair.
Since Joe the Barber doubled his order of hairspray, Willie the hairspray salesman will order more hairspray from the River City Hairspray Company.
The River City Hairspray Company now must order more spray cans for their hairspray. The River City Spray Can Company now must order more steel to make spray cans.
Because Joe the Barber’s business has picked up, the money, please forgive the expression, trickles up. This is trickle up economics.
Those who believe that this is supply side economics are only half-right.
We are not offering major tax cuts to make products cheaper so more consumers can buy them.
We are offering major tax cuts to those people who get haircuts, buy shoe-laces, Q-tips, detergent, cat food, newspapers, aluminum foil, Pizza, M&M’s, potato chips, oatmeal cookies, caffeine- free diet Pepsi, Chinese takeaway, candles, CD’s, DVD’s, ketchup, key-chains with their names on them, and so on.
Can A Billion Dollars create 7,000 jobs? That depends. Where does this money come from? The vaults of the wealthy that are hoarding their ill-gotten gains while the world suffers? The people whose hoarding is purported to be causing all this misery? If they spend their billions, will that create the 7,000 jobs? Only if the rich guy gets 7,000 haircuts a week.
You know that idea floating around that those big corporations must spend their money to create jobs. That is trickle down economics.
What this country needs is trickle up economics. Money put into the economy by people who spend the money on Main Street.
Addendæ:
Two ways to put money into the economy and create jobs.
Number 1.
Tax Peter $5,000.
Give $5,000 to Paul to create a job.
Number 2.
Don't tax Peter $5,000.
Tell Paul, "When you calculate your taxes, knock off $5,000 from what you owe Uncle Sam--If you created a job."
There is a vast, but fathomable difference between methods one and two.
Sincerest regards,
Slim
Please Read, the Multiplier Effect. My ppt. presentation on SlideShare.
However, to understand this even further, please read Economic Stimulus by Metaphor
Sincerest regards.
Copyright © 2011 Slim Fairview
Thursday, June 9, 2011
Economic Stimulus, by Metaphor
Slimviews: Commentary on Global Political and Economic Events by Slim Fairview Please also see also http://sidestreetjournal.blogspot.com/ Please do click the follow button for Slimviews--and please email a link to your friends. Thank you.
Slim
Slim
Now to explain. For this, we will need to create that all-important metaphor. Too, I should like to apologise in advance for the one snarky remark I will make about a former President. (One must compare apples to apples.)
For the purposes of this lesson, we will assume that Joy, brown-bags it every day except Friday. On Friday, she takes 10 hard-earned dollars and goes to Whoopi's Sandwich Store for a baloney sandwich.
Now Elisabeth is out of work. However, Jimmy Carter feels her pain. Therefore, he taxes Joy $10 and gives it to Elisabeth so she can buy a baloney sandwich. Joy is not happy. She's being ripped off. Elisabeth is no better off because she still does not have a job. Now, what about Whoopi? She is no better off because she is still selling one baloney sandwich a week.
In response to critics, Jimmy decides to tax Whoopi $10 to train Elisabeth how to make baloney sandwiches. After getting her certificate, she goes to Whoopi's store looking for a job. However, Whoopi tells her, "Sorry, Friday is my last day. Jimmy Carter taxed me out of business."
Now, President Obama comes along and says, "That is not how to do it. I am going to have the SBA lend Elisabeth the money to go into her own business."
Elisabeth opens up a soda store next door to Whoopi's Sandwich Store.
Back to Joy. Aptly named because her tax cut allows her to go back to Whoopi's store and buy a baloney sandwich; and she goes next door to buy a soda.
Elisabeth is happy because she's making money, so she treats herself to a baloney sandwich.
Whoopi is thrilled because she doubled her sales volume and revenue. In fact, she is doing so well; she hires Sherri to help make sandwiches. (Whoopi trains Sherri, as it should be in business.)
Sherri is happy because she has a job, and, please forgive my little joke, her compensation package includes a free lunch. However, no beverage. Therefore, Sherry goes next door to Elisabeth's soda store to buy a soda. Well, with all this soda being sold, Elisabeth hires Barbara to work in her soda store. Now Barbara is thrilled because she has a job.
Back to the Oval Office:
The President's economic advisor comes in.
"You wanted to see me, Sir?"
"Yes, I have some money for you. It is part of Sherri and Barbara's benefits payments. They are out of work. I want you to send the money to Sherry and Barbara."
However, the advisor says to the President, "But Mr. President, Sherri and Barbara don't need that money anymore. They have jobs."
"That's great," the President says. "The government is saving money."
The advisor continues. "It's better than that. Since they are working, they are paying income taxes. So, I have some money to give to you from Sherri and Barbara."
"Wow", the President says. "I save money because Sherri and Barbara are working, and I bring in money because they are paying taxes. This stimulus package is great."
This is how economics works. It takes a little time, but this is how the system works.
Regards,
Slim
PS. I am not Paul Harvey. Still, I am open to becoming a paid blogger, columnist, or commentator.
In the meantime, if anyone finds the monographs on my blog to be especially helpful, please do not hesitate to send me on of those tricked out laptops and few dollars tucked into the envelope with the thank you note.
In the meantime, if anyone finds the monographs on my blog to be especially helpful, please do not hesitate to send me on of those tricked out laptops and few dollars tucked into the envelope with the thank you note.
Sincerely
Slim
Copyright (c) 2011 Slim Fairview
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