social.outsourcedmath.com

Michael Rupp friendica

A Capitalism Market Pricing Fail

This post is appropriate for tumultuous times like the ones we are in now. People schooled in # are well aware of the way a # is supposed to automatically make sure the people who need goods & services the most during a shortage in the # will get them because they are willing to pay more because their needs are higher.

I had a minor epiphany today that saw that as the # that it is. It always rang hollow for me, but when I learned it I was part of the culture that wants to believe it. (side note: Now, I sincerely believe that # is mere # #, although the # types and other # based # seem to make it into "old-school" feudalism)

In a rare instance, Iβ€”a non-religious personβ€”am going to quote the # # to help bring home my point. (#)

Luke 21:4 wrote:

For they have put in a little of the money they had no need for. She is very poor and has put in all she had. She has put in what she needed for her own living.

Our current free-market pricing, aka Invisible Hand Of The Market, is the type of magical thinking we expect from theology, so why do we think it's okay for economics; a science? I think it's because it's presented in the form of a false dichotomy in the first place. The offered alternative is fixed pricing. The logical conclusion is people overbuy because of their inexorable human fear of running out and hoarding happens as a result; obviously an inefficient market condition. # had a case of this early in the # crisis where we went insane for toilet paper.

Some retail vendors dealt with the potential stock-outage dilemma by limiting the number a person could purchase on a single visit; # goods. Despite this limitation being easily hacked by nefariously thinking people, it worked in general. All we needed was a nudge that effectively put across the message, "don't be an asshole." It's hard to pull off rationing in a population of cultural capitalists who, "don't like the guvement tellin' me wut ta do."

This next thought experiment is almost impossible to do in theory, but I'm putting it into writing anyway because it points us towards better thinking. Suppose that under normal market conditions we could statistically determine the "regular" pricing for a good or service. That is a feasible activity that is done by many people in many places all the time. Now add to that the idea that we could also know either the true # and/or # of people at all times. And the final element is to make the market price a linear formula of surge-pricing = regular pricing + (x percent of net-worth or annual income). This has the property of egalitarianism built into the pricing.

In our current system of capitalism, no wealthy person would ever weigh the surge-pricing of goods or services and think, "maybe I should wait." A majority of people in the middle class will be forced to think about it immediately, then others will be forced to overtime. People in poverty don't have the luxury of thinking it over, they have to do without or die. This is also obviously an inefficient market condition, except that people with power never viscerally feel its effects. Wealthy people only care about problems that hurt them personally.

-QED

!Stock Picking Discussion
!Atheists in the open

Median Net Family Wealth Boston Mass USA: $247,000.00 Whites, $8.00 Blacks. Source Boston Federal Reserve Bank.

So I guess this book by Eric Lonergan & Mark Blyth is going to be a real snapper!


I'm only hearing about it today from the podcast below, but I think it may be a hot bestseller.

A financial portfolio … for everyone

embedded audio player
(Focus at the 2:00 mark)

#Economics #BlackLivesMatter #Inequality #SocialJustice #WealthGap

Elections | Opinion about Lib's/Socalists/etc. versus Capitalist Ambition

Typically I'm posting a #Podcast for people to listen to and a reason to listen to it, but here, a podcast merely #Triggered my thoughts while doing man-on-the-street type interviews of #Arizona #Voters.

An older-sounding white man said something about how all the #Progressives (pejoratively) and their #Socialism and free #Medicare is going to kill off all the #Ambition of #Capitalism. I definitely paraphrased him, but his point is intact.

His comment caught me in that way where you clearly see how and why he is so mistaken. I felt the immediate recoil from him misunderstanding what a #Progressive is, but I'll give him that because #Politics is messy and people on the same side disagree if given the chance to talk to each other instead of yelling at the "others". However, he is fundamentally wrong about ambition. He was confusing the idea of working out of desperation and the survival instinct with ambition. Perhaps he was a #BlueCollar type who had hopes for his next of kin doing better and instead sees 23-year-old grandchildren playing X-Box all day and drinking at night. I don't know why he thinks his opinions are valid, but I do know he is wrong.

It's been #Scientifically proven that when we are stressed over meeting our basic needs in life that we can't make good decisions. Ambition comes from having a good idea that can improve people's lives in a way that it would be valued at more than what it costs to produce. It's hard to have good ideas when you can't figure out what to do without; #Healthcare, #Food, #Heat, #Electricity, Clean #Water, or the #Mortgage / #Rent payment. I believe it's a goal of socialism to meet these basic needs without question, thus the desperation is lifted and people can be free to think of greater things.

The #Ancient #Greeks had an unquestionably great thing going with flourishes of #Math, #Science, #Medicine and so forth. Their institutions of learning did not charge admission for entrance. They did, however, have a bar to entry, and it was based on the economic standing of the citizens. If you were wealthy enough to stop working for a period of time, you could get the "go-ahead goal" of learning about important things. Poor people were still stuck in the cycle of desperation. This may explain why it's so much more likely that non-poor people have #Innovative ideas and subsequently the ambition to get rich as a result.

If nobody was stuck in desperation mode due to bad-luck-of birth #Economics, #Innovation and ambition might skyrocket.
Chapter 4: The Southeast | Crooked Media (site link)
Stitcher embedded audio feed
https://app.stitcher.com/splayer/f/206225/66700404
"I don't know why he thinks his opinions are valid, but I do know he is wrong"
I have an evidence based reason why he thinks his opinions are valid, and I know he is wrong too..
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