Saturday, October 22, 2011

We the People

I find that a few people can't break down the meanings of the terms government, corporations, businesses, market, capitalism, socialism, and communism  just to name a few.  So I will simplify the equation (like in math class).  Who is the government?  What are corporations and businesses?  Who constitutes a market?  What is the real point of  capitalism, socialism, and communism?

Well a picture is worth a thousand words.



Did we notice anything special in this picture?  In the preamble of the Constitution it states "We the People of the United States," and so on.  Now who is the government?  We are.  What are corporations and businesses?  Organizations of who?  We the people.   Who constitutes a market?  Again we do.  

Now this being the case, let's look at a few quandaries like market function, taxes, executive pay, employee pay, poverty, and personal responsibility.  Do we the people like to buy things?  All the same things?  Yes, we like buying things and no, we don't always like the same things.  Some people like peanut butter.  And Viola! if we put all the people together that like peanut butter we have a market.  Do we like it when other people tell us we don't like peanut butter? NO, we do not.   




The people that like peanut butter purchase peanut butter but the people that made the peanut butter may like jam better and they join the jam market.  However, they need money to trade for jam   So, the money they receive from supplying peanut butter is divided between employee needs, company investments for future sales, and funds for maintenance, waste, and accident.  Now here is the trick, watch carefully.  It costs money to make peanut butter (employee needs, company investments for future sales, and funds for maintenance, waste, and accident).  If this price is too high then the market gets smaller forcing the price of peanut butter to go up.  If the market gets bigger the price of peanut butter goes down.  But, no matter what happens the market stays balanced.

When a market starts falling off the people that make peanut butter will start making it cheaper or better or faster or ship it to other markets or what ever the market demands to balance the market again.


   

If a market is booming (lots of peanut butter buyers) then there is room for other businesses to enter into the market.  Competition!


                 

It's all about the demand (people that like peanut butter) balancing with the supply (people that make peanut butter).  

Jumping to internal business economics,  why do executives get paid more then normal employees?  

A person finds that there is a good market of peanut butter buyers.  He or she decides to make peanut butter.  Time and money is spent getting a working business plan together finding other people that can organize specific details of each of the major function of the company are found and enticed.  Then more people are found that can salt peanuts, cook peanuts, shell peanuts, crush peanuts, bottle peanut butter, pack boxes, ship boxes, and sell peanut butter at a price the market thinks is fair for their efforts.  

Who did the most work and is risking the most?  The person that wanted to make peanut butter.  Who is next most responsible?  The people riding the horses of the business's major functions.  One bad buck and the company can suffer loses that affect everyone in the company.  What employee positions become more redundant in numbers of people holding them?  The line workers.  Wow, a micro market inside a bigger market.  Looking at the job of  "salting peanuts", if there are lots of people that can fill the job the wage goes down.  If few people can do the job the wage goes up.  If the wage gets too high the company fails.  

However, another person's company  might be able to salt peanuts for less then hiring an internal employee to do it.  Or, there might be a new machine that can do it cheaper then paying a person or a company to salt peanuts.

So, it comes down to what the people will pay for verses what the people will work for to maintain the peanut butter availability.  

dom, Dom, DOM, I hear the genital foot steps of the government coming in stride with the tax man.  OK, let's get the playing field organized.  Hear the soft voices of people shouting "I want peanut butter", "I want jam", "I want toast", and so on.  Businesses jib and jab attempting to balance the supply with the demand at the price the market dictates.  The government announces that they will supply toast.  Oh, by the way we say the price is high according to market standards and you will pay it any way.  


   

Forcing a price without regard to market demand buys a whole lot of waste.  Let's look at a few wasted bucks.

Education:  Let's loan the students money without regard to market needs so that they have a healthy debit right out of college.  Will their chosen profession be in a saturated market causing a trip to the twilight zone of micro markets and low wages to pay off those loans?    

General Welfare:  As mentioned in the Constitution Article 1 Section 8 refers to the health of the nation in whole not the individuals.  Let's think on this, if the government pays people that do not participate in supplying goods and services in the private markets are they not weakening the general welfare of the nation as goods and services dry up?  Nature will balance the equation with poverty, disease and death if it comes to that.  So the government is breaking the law as they spend on a twisted understanding of general individual welfare.

Health Care:  We are all people with different talents, desires, and educations.  Why does a doctor become a doctor?  Easy answer- self improvement personally or publicly.  Or wealth and fame, your choice.  Now without regard to market demand and supply again the government people have set arbitrary requirements on doctors to see people in poverty that they created.  This forces the doctor into poverty also.  Cool, here's one better.  Governmental protections have forced all but the most profitable forms of medicine like allopathic medicine into poverty.  Buy a shot.  Buy a pill. Fix the problems as individual modules, that way 4 doctors need to look at you instead of one.  In effective waste of power and funds.

The people we trusted to govern need to read the Declaration of Independence.  For the same reasons our fore fathers left England, the people may rise against the current "CORPORATION OF THE UNITED STATES OF AMERICA INC.".  

We the people, why have we bowed to anything but the real rights we have... life, liberty, and the pursuit of happiness.  The other day the radio news was talking of grade schoolers and their right to education.  "What?" was my reply.  Since when is education a right? Rule number ONE; rights don't cost money.  Rule number TWO; rights don't require other people to do anything for us.  Rule number THREE; rights are God given not some rhetoric from some government .

Socialism, and communism are both but not the only government rhetoric machines.  They tell people that they don't need to work for themselves.  The government expounds to everyone things like; need food call us we will magically get it for you from thin air.  We don't force people to work after we tell them the government will provide.  Behind the thin veil of government is always the people.  Governments can do nothing save the people actually do it; usually out of fear.           

Many people believe that Naziism is the ultimate conservative position.  However, NAZI is the German acronym for the National Socialist German Workers' Party.  So, if you live in communist China Nazi s are conservative.

Well that's all I can say for now.