Quotulatiousness

September 17, 2014

Creating jobs, good. Creating subsidized jobs, not so good.

Filed under: Economics, Government — Tags: , , , , — Nicholas Russon @ 09:33

Gregg Easterbrook on the difference between ordinary jobs and government subsidized job creation:

Elon Musk Recharges His Bank Account: Tesla’s agreement with Nevada to build a battery factory is expected to create about 6,000 jobs in exchange for $1.25 billion in tax favors. That’s about $208,000 per job. More jobs are always good. But typical Nevada residents with a median household income of $54,000 per year will be taxed to create very expensive jobs for others. Volkswagen is expanding its manufacturing in Tennessee, which is good. But the state has agreed to about $300 million in subsidies for the expansion, which will create about 2,000 jobs — that’s $150,000 per new job, much of the money coming from Tennessee residents who can only dream of autoworkers’ wages. The median household income in Tennessee is $44,140, about a third of the tax subsidies per new Volkswagen job. The Tesla handout was approved by the Democratic state legislature of Nevada; Tennessee’s Republican-controlled state government approved the Volkswagen corporate welfare deal.

At least it’s a bargain compared to federally subsidized solar jobs. A Nevada solar project — state that is home to Senate Majority Leader Harry Reid, President Barack Obama’s closest ally on Capitol Hill — cost $10.8 million in subsidies per job created. Local public interest groups noticed the extreme subsidy while the national media did not.

This cheeky website monitors giveaways state by state.

September 11, 2014

Would Scottish separation resemble the “Velvet Divorce” of Czechoslovakia?

Filed under: Britain, Economics, Europe — Tags: , , , , — Nicholas Russon @ 11:40

At the Volokh Conspiracy, Ilya Somin looks at the breakup of Czechoslovakia and compares the possible UK-Scotland divorce in that context:

One relevant precedent is the experience of the “Velvet Divorce” between Slovakia and the Czech Republic, whose success is sometimes cited by Scottish independence advocates as a possible model for their own breakup with Britain. Like many Scottish nationalists, advocates of Slovak independence wanted to break away from their larger, richer, partner, in part so they could pursue more interventionist economic policies. But, with the loss of Czech subsidies, independent Slovakia ended up having to pursue much more free market-oriented policies than before, which led to impressive growth. The Czech Republic, freed from having to pay the subsidies, also pursued relatively free market policies, and both nations are among the great success stories of Eastern Europe.

Like Slovakia, an independent Scotland might adopt more free market policies out of necessity. And the rump UK (like the Czechs before it), might move in the same direction. The secession of Scotland would deprive the more interventionist Labor Party of 41 seats in the House of Commons, while costing the Conservatives only one. The center of gravity of British politics would, at least to some extent, move in a more pro-market direction, just as the Czech Republic’s did relative to those of united Czechoslovakia.

If the breakup of the UK is likely to resemble that of Czechoslovakia, this suggests that free market advocates should welcome it, while social democrats should be opposed. Obviously, other scenarios are possible. For example, famed economist Paul Krugman claims that Scottish independence is likely to result in an economic disaster, because a small country without a currency of its own cannot deal with dangerous macroeconomic crises. I lack the expertise to judge whether Krugman’s prediction is sound. But it does seem like there are obvious counterexamples of small countries that have done well without having their own currencies; Slovakia is a good example. Moreover, although Scottish independence advocates today claim that they will stick to the pound, they could reverse that decision in the future.

All of the above assumes that an independent Scotland will be able to stay in the European Union, and that there would be free trade and freedom of movement between it and the remaining United Kingdom. If the Scots get locked out of the EU or prevented from interacting freely with the UK (perhaps as a result of backlash by angry English public opinion), Scottish independence becomes a lot less viable and a lot more likely to cause serious harm on both sides of the new border.

QotD: The real lesson taught by mandatory “volunteer” work

Filed under: Economics, USA — Tags: , , , — Nicholas Russon @ 00:01

What about the rationalization that charitable extracurricular activities teach kids important lessons of moral engagement? There are reasons to be skeptical. A skilled professional I know had to turn down an important freelance assignment because of a recurring commitment to chauffeur her son to a resumé-building “social action” assignment required by his high school. This involved driving the boy for 45 minutes to a community center, cooling her heels while he sorted used clothing for charity, and driving him back — forgoing income which, judiciously donated, could have fed, clothed, and inoculated an African village. The dubious “lessons” of this forced labor as an overqualified ragpicker are that children are entitled to treat their mothers’ time as worth nothing, that you can make the world a better place by destroying economic value, and that the moral worth of an action should be measured by the conspicuousness of the sacrifice rather than the gain to the beneficiary.

Steven Pinker, ” The Trouble With Harvard: The Ivy League is broken and only standardized tests can fix it”, The New Republic, 2014-09-04.

September 9, 2014

QotD: The Iron Law of Redistributionism

Filed under: Bureaucracy, Economics, Politics, Quotations — Tags: — Nicholas Russon @ 00:01

[P]olicies intended to “help” the poor are invariably hijacked by a rentier class that fattens on the rising diversion of income. Result: help never arrives, much wealth is destroyed, growth is strangled, and the poor get poorer.

Eric S. Raymond, Google+, 2014-09-06.

September 3, 2014

Economic growth as a language extinction factor

Filed under: Economics, History — Tags: — Nicholas Russon @ 10:01

In Forbes, Tim Worstall talks about a recent paper in the Proceedings of the Royal Society which notes that minority languages are at greater threat of extinction as the speakers of that language experience economic prosperity:

Here’s an interesting little economic finding: the extinction of minority languages seems to be largely driven by economic growth and success. It’s perhaps not one of those explanations that we would immediately think of but once it has been brought to our attention it seems obvious enough given what is actually economic growth. In terms of public policy this perhaps means that we shouldn’t worry too much about languages disappearing: because that is a signal that economic development is happening, people are becoming less poor. But people ceasing to use a language because it no longer fits their needs is one thing: we should still study, analyse and record those languages as they’re all part of our shared human experience.

The paper is in the Proceedings of the Royal Society B and can be found here:

    By contrast, recent speaker declines have mainly occurred at high latitudes and are strongly linked to high economic growth. Threatened languages are numerous in the tropics, the Himalayas and northwestern North America. These results indicate that small-population languages remaining in economically developed regions are seriously threatened by continued speaker declines. However, risks of future language losses are especially high in the tropics and in the Himalayas, as these regions harbour many small-population languages and are undergoing rapid economic growth.

Worth thinking through the different types of economic growth that we traditionally identify. The first is Malthusian growth. Here an advance in technology (say, a new, higher productivity, farming method) leads to there being more resources to support the new generation. More of them survive to then have their own children and the population increases. At some point in the future living standards return to where they were given that larger population. This is a reasonable description of near all economic growth before 1750 or so (and made the Rev. Malthus correct in his gloomy predictions about economic growth for pretty much all of history before he sat down to write had indeed been like this). Malthusian growth is likely to increase the population speaking whatever language it is that that society speaks. For the obvious reason that the growth is morphing into more people to speak that language.

The second form of growth is Smithian growth. Here, growth is coming from the division and specialisation of labour and the resultant trade in the increased production this enables. Almost by definition this requires that the network of people that one is trading with, dividing labour with, expands. To the point that one is, at some point, going to start doing so with people outside one’s clan, tribe or language. The cooperation of trade requires that there be some ability to converse and therefore there’s pressure to adopt some language which is mutually compatible. As large groups meet large groups then we might find some synthesis of language going on: as say English is an obvious synthesis of Romance and Germanic languages. Where small groups are meeting larger and trading with them then we’re more likely to see the adoption of the larger group language and the extinction of the smaller.

QotD: The relative size of the Chinese economy, historically speaking

Filed under: China, Economics, History, Quotations — Tags: , , — Nicholas Russon @ 00:01

People seem to want to get freaked out about China passing the US in terms of the size of its economy. But in the history of Civilization there have probably been barely 200 years in the last 4000 that China hasn’t been the largest economy in the world. It probably only lost that title in the early 19th century and is just now getting it back. We are in some senses ending an unusual period, not starting one.

Warren Meyer, “It is Historically Unusual for China NOT to be the Largest Economy on Earth”, Coyote Blog, 2014-08-30.

September 2, 2014

British government “austerity”

Filed under: Britain, Economics, Media — Tags: , , , — Nicholas Russon @ 14:29

Theodore Dalrymple explains why changing the name of something does not actually change the thing being described, no matter how much politicians or journalists wish it did:

… some errors are important, and one sees them more insistently the older one grows. For example, the other day I read an article in Le Monde about the forthcoming referendum in Scotland on independence from the United Kingdom. The author of the article was clearly sympathetic to the cause of independence, but that was not the cause of my irritation with the article, nor the fact that he quoted an old man, a former trade union militant, who said that he was in favor of independence, among other reasons, because the United Kingdom was the fourth most unequal country in the world. If old men in Scotland can be as ignorant of the world as that, it is an interesting sociological observation; and the author of the article is almost certainly right that those in favor of Scottish independence favor a state even more extensive in the name of equality than the one that they already have.

No, I was irritated rather by the fact that the author of the article accepted that the policy of the present British government can properly be described as one of austerity. What the alleged austerity amounts to is this: that in the current year the government will borrow only one in six of the pounds it spends instead of one in five, as it did last year. As to the reasons for this less than startling decline in its borrowing requirements, it was not because the government was spending less but because it was receiving more taxes, from the speculative housing bubble which it has done much to fuel. If that bubble should burst, the borrowing necessary to maintain current levels of expenditure (already very high) would rise again, possibly higher than ever.

This is not a question of whether the economic policy followed by the government is the right one or not: perhaps it is and perhaps it isn’t. It is a question of the honest use of words. One would not say of a man who passed from smoking sixty cigarettes a day to fifty that he had given up smoking, or that he had exercised great self-denial. And one would not, or rather should not, say of an organization that had balanced its budget once in fifty years (the British government) that it was practicing austerity merely because it had to borrow a slightly lower percentage of what it spent than it did the year before. This is to deprive words of their meaning.

But does this matter? As the philosopher Bishop Butler once said, everything is what it is and not another thing. A budget deficit is a budget deficit, whether you call it profligacy or austerity. A thing is not changed by being called something different.

Unfortunately, matters are not quite as clear-cut as that. In human affairs, words matter, as much because of their connotations as of their denotations. Austerity means stern treatment and self-discipline. It means harshness and astringency. Needless to say, harshness in their government is not what most people look or will vote for. If reducing the rate at which you overspend and accumulate debt is called austerity, no one will dare go any further in that direction, though it were the right direction in which to go. Words, said Hobbes, are wise men’s counters but the money of fools: so that many men will take the name for the thing itself. Whether more active attempts to balance the budget would be advisable I leave to economists to decide (they can’t, of course).

August 20, 2014

New report calls for Ontario to break up the LCBO

Filed under: Business, Cancon, Economics, Wine — Tags: , , , , , — Nicholas Russon @ 13:33

In the Toronto Star, Richard Brennan reports on a new study by the C.D. Howe Institute calling for the province to join the modern era:

The “quasi-monopoly” LCBO and The Beer Store have hosed Ontario consumers long enough, a C.D. Howe Institute report says.

The right-wing think tank said the Ontario government should strip them both of their almost exclusive right to sell beer, wine and spirits, suggesting the report proves that opening up to alcohol sales to competition will mean lower prices.

“The lack of competition in Ontario’s system for alcoholic beverage retailing causes higher prices for consumers and foregone government revenue,” states the 30-page report, Uncorking a Strange Brew: The Need for More Competition in Ontario’s Alcoholic Beverage Retailing System, to be released publicly Wednesday.

The report includes tables comparing Ontario beer prices to other provinces with greater private sector involvement, particularly with Quebec, where a case of 24 domestic beers can be as much as $10 cheaper and even more for imported brands.

Since 1927, when the Liquor Control Act was passed, the Liquor Control Board of Ontario and the privately owned Brewers Warehousing Company Limited have had a stranglehold on alcohol sale in the province.

“The Beer Store’s quasi-monopoly of beer retailing is … an anachronism,” the report says, referring to the foreign-owned private retailer that is protected by provincial legislation.

Britain’s railway system under private and public ownership

Filed under: Britain, Economics, Railways — Tags: , — Nicholas Russon @ 08:13

At the Adam Smith Institute blog, Ben Southwood asks the question “What would we consider a successful railway system?”

Under many measures, the railways have performed remarkably since privatisation. It is not surprising that the British public would nevertheless like to renationalise them, given how ignorant we know they are, but it’s at least slightly surprising that large sections of the intelligentsia seem to agree.

Last year I wrote a very short piece on the issue, pointing out the basic facts: the UK has had two eras of private railways, both extremely successful, and a long period of extremely unsuccessful state control. Franchising probably isn’t the ideal way of running the rail system privately, but it seems like even a relatively bad private system outperforms the state.

British railway passengers 1830-2010

Short history: approximately free market in rail until 1913, built mainly with private capital. Government control/direction during the war. Government decides the railways aren’t making enough profit in 1923 and reorganises them into bigger regional monopolies. These aren’t very successful (in a very difficult macro environment) so it nationalises them — along with everything else — in the late 1940s.

By the 1960s the government runs railways into the ground to the point it essentially needs to destroy or mothball half the network. Government re-privatises the railways in 1995 — at this point passenger journeys have reached half the level they were at in 1913. Within 15 years they’ve made back the ground lost in the previous eighty.

August 18, 2014

Worstall confirms that “the UK would lose 3 million jobs in the year it left the European Union”

Filed under: Britain, Business, Economics, Europe — Tags: , , — Nicholas Russon @ 09:15

There you go … proof positive that the UK cannot possibly, under any circumstances, leave the European Union. Except for the fact that the UK would lose 3 million jobs in the year even if it stayed with the EU, because that’s how many jobs it normally loses in a year:

UK Would Not Lose 3 Million Jobs If It Left The European Union

Well, of course, the UK would lose 3 million jobs in the year it left the European Union because the UK loses 3 million jobs each and every year. Roughly 10% of all jobs are destroyed in a year and the economy, generally, tends to create 3 million jobs a year as well. But that’s not the point at contention here which is the oft repeated claim that because we left the EU then therefore the UK economy would suddenly be bereft of 3 million jobs, that 10% of the workforce. And sadly this claim is a common one and it just goes to show that there’s lies, damned lies and then there’s politics.

The way we’re supposed to understand the contention is that there’s three million who make their living making things that are then exported to our partners in the European Union. And we’re then to make the leap to the idea that if we did leave the EU then absolutely none of those jobs would exist: leaving the EU would be the same as never exporting another thing to the EU. This is of course entirely nonsense as any even random reading of our mutual histories would indicate: what became the UK has been exporting to the Continent ever since there’s actually been the technology to facilitate trade. Further too: there have been finds in shipwrecks in the Eastern Mediterranean of Cornish tin dating from 1,000 BC, so it’s not just bloodthirsty and drunken louts that we’ve been exporting all these years.

August 8, 2014

Revisiting the economic brain-fart that was “Cash for Clunkers”

Filed under: Economics, Government, USA — Tags: , , , — Nicholas Russon @ 07:44

If you listen to big government fans, you’ll often hear how much better it is for the economy for the government to spend money — much better than letting the taxpayers spend that money themselves — because the government is able to get a much higher “multiple” for every dollar that it spends. The “Cash for Clunkers” story may support that theory, but only if you reverse the sign: the program may have been more economically helpful to the auto makers and the taxpayers if they’d just piled up a few billion bank notes and set them on fire. The program ran for two months, and the government doled out $3 billion in subsidies to new car buyers (their old cars were destroyed). The new car owners benefitted, although it seems to merely have brought forward intended new car purchases in most cases, and the auto makers seemed to benefit by moving out a lot of unsold inventory.

However, a new National Bureau of Economic Research working paper shows that the program actually ended up costing the auto makers between $2.6 and $4 billion. Coyote Blog quotes the WSJ‘s summary:

The irony is that the goals were to help Detroit through the recession by subsidizing sales and to please the green lobby by putting more fuel-efficient cars on the road. By pulling forward purchases that consumers would make later anyway, the Obama Administration also hoped to add to GDP. Christina Romer, then chair of the Council of Economic Advisers, called Cash for Clunkers “very nearly the best possible countercyclical fiscal policy in an economy suffering from temporarily low aggregate demand.”

The A&M economists had the elegant idea of comparing the buying behavior of Texas drivers who owned cars that barely qualified for cash (those that got 18 miles per gallon of gas or less) and those that barely did not (19 mph). Using state DMV sales records, this counterfactual allowed them to isolate the effects of the Cash for Clunkers incentives and show what would have happened without the program.

The two groups were equally likely to purchase a new vehicle over the nine month period that started with Cash for Clunkers, so the subsidy did not create any extra auto business. But in order to meet the fuel efficiency mandate, consumers who got the subsidy were induced to purchase smaller vehicle models with less horsepower that cost on average $2,500 to $3,000 less than those bought by their ineligible peers. The clunkers bought more Corollas, and everybody else more Chevys.

Extrapolated nationally, auto revenues may have plunged by more than what the government spent. And any environmental benefits cannot be justified under the federal social cost of carbon estimate of $33 a ton. Prior research from 2009 and 2013 has shown that the program cost between $237 and $288 a carbon ton.

By taking all those used cars off the road and destroying them, the program also created a nasty price spike in the used car market (which hurt the poor almost exclusively). As P.J. O’Rourke said:

… cash for clunkers was just sinful. You’re taking a bunch of perfectly good vehicles, inexpensive vehicles that could be used by people without much in the way of material means, and crushing them. If someone took a valuable resource — something that could really be useful to people — and destroyed it, they’d be in jail if they were private citizens.

Steve Chapman probably put it best back in 2009, “Cash for Clunkers has been a thrilling moment for advocates of expanded government, who say it proves what we can accomplish when our leaders put their minds to it. They are absolutely right. The program proves the federal government is unsurpassed at two things: dispersing money and destroying things.”

August 7, 2014

Streetcars – trying to use 19th century technology for 21st century problems

Filed under: Economics, Railways, USA — Tags: , — Nicholas Russon @ 07:13

In addition to my already admitted train fetish, I’m also a low-key fan of the streetcar. Some of that, I’m sure, is that a streetcar is really just a one-car passenger train on a short journey with frequent stops. But I recognize that streetcars and trams are not a realistic solution to urban transit needs today … unlike far too many city and regional transportation planners. The Economist has a short explainer this week, backup up this argument:

Streetcars — otherwise known as trolleys or trams — had their golden age around 100 years ago, carrying urban workers to nascent suburbs around Europe and America. But commuters had little love for these rickety, crowded electric trains, and by 1910 many were abandoning them for the convenience of cars or buses. Streetcars have been making a comeback, however, with new lines rumbling to life in at least 16 American cities, and dozens more in the works. Tucson, Arizona, inaugurated its new streetcar service in late July, and streetcar operators in Washington, DC, begin training this week—the city’s much-delayed service is expected to start later this year. But for all their nostalgic charm, streetcars are also increasingly controversial: a number of cities, such as San Antonio, Texas, are now rethinking their plans, complaining of high costs and limited public support. Critics grumble that streetcars gobble up scarce transit funds for a slow, silly service used mainly by tourists.

[...]

Streetcars are also incredibly expensive to build and maintain, with huge up-front capital costs in laying down rails and buying cars. Tucson’s project ultimately cost nearly $200m and opened years late, in part because the city needed to clear utilities from under the tracks, install overhead electrical connections and repave much of the four-mile route. A 3.6-mile line in Cincinnati, Ohio, now under construction is expected to cost at least $133m. Federal grants have gone some way to help pay for these projects, but cash spent on streetcars displaces spending on other, more cost-effective forms of public transport like buses, which offer cheaper and more-efficient service but are considerably less sexy. The capital cost per mile of a streetcar is between $30m and $75m, while a rapid bus service costs anywhere between $3m and $30m, according to the American Public Transportation Association.

All this investment might make some sense if streetcars offered an efficient way to move people around. But here, too, the evidence is flimsy. Riders — and especially tourists — may find streetcars less intimidating than buses, but these vehicles tend to offer slow journeys across walkable distances. European tramlines tend to be fairly long and isolated from other traffic, which ensures a swifter journey. But in America streetcars travel shorter distances along rails that mix with other traffic, so streetcars invariably inch along. And while these tracks may be reassuring to developers, they make it impossible to navigate busy streets: buses can ride around obstacles but trams must stay put and wait. Indeed, their slow speeds and frequent stops mean they often add to congestion. This may not bother tourists keen on a novelty ride, but it is no solution to America’s public transport problems.

If you want to include light or heavy rail in your city’s public transit network, it has to be either grade-separated from cars and pedestrians or it needs to be buried underground or raised in the air: mixing streetcars with cars and trucks — even if you manage to rebrand them with a more modern-sounding moniker — worsens traffic, creates unhappy interactions between the rail and non-rail vehicles, costs vast amounts of money, and rarely draws enough passenger traffic to come close to breaking even. I’m no fan of buses, but in almost every case, the economic case for buses is far more sound than the case for streetcars.

August 6, 2014

Atlas Shrugged was not an instruction manual”

Filed under: Business, Economics, Government, USA — Tags: , , — Nicholas Russon @ 08:34

Oh, my. A few corporations are using the “corporate inversion” tactic to get out from underneath punitive taxes and the reaction is to talk about making it harder to escape? Tamara K. explains why this is breathtakingly dumb:

Dude, one of the complaints that nuanced cosmopolitan liberals have with Ayn Rand is that her villains are cartoonish caricatures, and here you go popping out an editorial that could have been written by Wesley Mouch. Tone-deafness on this scale is positively breathtaking. Atlas Shrugged was not an instruction manual, you knob.

I suspect more corporations have been considering the pro and con to corporate inversion recently … and the hysterical reaction to the few that have already taken place may trigger a rush to the exits. Nice work, guys!

August 3, 2014

NLRB decision would “stick a fork in the franchise model”

Filed under: Business, Economics, USA — Tags: , — Nicholas Russon @ 10:08

In Forbes, Tim Worstall explains why the recent decision by the US government’s National Labour Relations Board could destroy the franchising business model widely used by fast food chains:

The National Labor Relations Board (NLRB) made a very strange decision last week to rule that McDonald’s the corporation, was a joint employer of the staff in the franchised restaurants. It was, of course, at the urging of those labour activists who would like to union organise in the sector. Dealing with one national company is obviously going to be easier than dealing with thousands of independent business owners. There’s a number of problems with this decision ranging from the way that it overturns what has long thought to be settled law, to it obviating already signed contracts but perhaps the greatest problem is that it calls into question the entire validity of the franchise system.

[...]

The franchisor though gets paid a percentage of pure sales: what the labour costs at the franchises is is no skin off their nose at all. So they’ll not control it. The only major input that the franchisee can control in order to determine profitability would now become, at best, a join venture and we’ve different incentives for each side of the bargain. That’s just not going to work well. I don’t think that Pudzer is being alarmist in stating that this ruling would stick a fork into the franchise model as a whole. You simply can’t have such a system where the franchisees don’t control any of their inputs.

Of course, it’s still open to someone to argue that the franchise system shouldn’t actually exist, that it would be a good thing if everyone were either a truly independent organisation or part of a large and centrally managed group. But if that is the argument that’s being made, or will be made, then it’s a large enough change that it really needs to happen through political means, not administrative law. That means that if Congress wants to change the rules in this manner then that’s up to Congress. But it really shouldn’t be done by the decision of an administrative agency.

August 2, 2014

Explaining free market exchange in real-world terms

Filed under: Economics, Liberty — Tags: — Nicholas Russon @ 11:17

A lovely little bit of explanation (that doesn’t require you to already have Econ 101 on your transcript):

“What are you looking at? Oh, Craigslist. My brother uses that all the time. Crazy, he should get a job”

“What does he do”

“Oh, he buys phones and stuff like that, jailbreaks them, then sells them for a lot more. He’ll buy a phone for $150 and sell it for $400.”

“Sounds like he’s doing pretty well”

“I suppose, but he’s always driving all over to buy stuff”

“Ok. How long do you suppose it takes him to pick one up and get home? Hour and a half? How long to jailbreak it? Lets say 30 minutes, although I bet it a lot less if he has the machine or program or whatever you use. You just told me he made $250 bucks on that one phone he sold. Dude, that’s $125/hour! That’s a pretty good income. That’s the how the free market works. People buy stuff they can sell to make money.”

“I sold an old car to Crazy Rays (Crazy Rays is a pick n pull junkyard) for $500. I bet they sold 2-3 grand worth of parts off of it.”

“How much work would it have been for you to part it out and sell the parts yourself?”

“Too much”

“And you’d rather have the $500 than your old beater, right?”

“Damn straight”

“See, that’s the beauty of the free market! Nobody loses!”

“What do you mean”

“Look, they don’t teach this in school anymore, but think about it for a sec. You hear all this crap about evil corporations and price gouging and that kind of shit. In a free market, that’s all crap. Nobody voluntarily makes a deal that’s bad for them. You’d rather have the $500 than your old car. Win. Crazy Rays would rather have your old car than the $500. Win. Who loses?”

“Nobody”

“Who wins?”

“Both of us”

“And that’s why the free market works.”

*clink beers*

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