Name: Anonymous 2013-04-26 5:30
Basic economics?
Farmer Phil grows potatoes. Baker Bill bakes bread. Every day Phil swaps a potato for one of Bill's loaves. That is until Bill joins a union and influences the government to nationalize the bakery, pay union wages and put into place price controls, this new economic model will make him richer, Bill believes.
To pay Bill's wages the price of bread must rise, but it cannot due to price controls. The government must raise tax to subsidize the bakery, the bureaucrats tell him it is a good idea but it is pointless to tax Bill more to pay him a higher wage, the burden lies on farmer Phil. Phil is faced with a choice, sell potatoes at a higher price or lose business, due to price controls Phil's farm suffers.
People would pay more for potatoes and bread but they can't so there is a rush every day to be first in line to buy them, businesses and the police have to go to great lengths to stop hoarders and the black market, extra potatoes and bread are imported in from abroad at great expense even though they could be grown cheaply and locally. Phil has to lay off workers. Bill is constantly arguing with his bosses and politicians who have done the math and don't think they can sustain his wages. "What happened to the days when I could just take the potatoes to the market?" Phil wondered.
One morning Bill wakes up and realizes that maybe he should have though this through, the financial system reflects the economy, warping financial indicators does not make the economy any more efficient or productive. If you want more public services or higher public sector wages you propose taxes and let people debate democratically how much to tax and spend, no silly schemes. If you want to influence the management of your place of work you negotiate and discuss things, don't use forces to shut the place own and intimidate other workers who don't share your opinion.
Farmer Phil grows potatoes. Baker Bill bakes bread. Every day Phil swaps a potato for one of Bill's loaves. That is until Bill joins a union and influences the government to nationalize the bakery, pay union wages and put into place price controls, this new economic model will make him richer, Bill believes.
To pay Bill's wages the price of bread must rise, but it cannot due to price controls. The government must raise tax to subsidize the bakery, the bureaucrats tell him it is a good idea but it is pointless to tax Bill more to pay him a higher wage, the burden lies on farmer Phil. Phil is faced with a choice, sell potatoes at a higher price or lose business, due to price controls Phil's farm suffers.
People would pay more for potatoes and bread but they can't so there is a rush every day to be first in line to buy them, businesses and the police have to go to great lengths to stop hoarders and the black market, extra potatoes and bread are imported in from abroad at great expense even though they could be grown cheaply and locally. Phil has to lay off workers. Bill is constantly arguing with his bosses and politicians who have done the math and don't think they can sustain his wages. "What happened to the days when I could just take the potatoes to the market?" Phil wondered.
One morning Bill wakes up and realizes that maybe he should have though this through, the financial system reflects the economy, warping financial indicators does not make the economy any more efficient or productive. If you want more public services or higher public sector wages you propose taxes and let people debate democratically how much to tax and spend, no silly schemes. If you want to influence the management of your place of work you negotiate and discuss things, don't use forces to shut the place own and intimidate other workers who don't share your opinion.