Tuesday, November 20

Capitalism and the Evil Rich


Obama's narrative said the rich ruined our economy through greed and selfishness.  So many Obama supporters simply said, "All I know is the GOP is pro rich."  Not logical, but emotional.  So let's get logical for a moment:

There are a few ways you can lose your job. One, you're unprofessional or incompetent.  This is not why our economy collapsed with all of us suddenly becoming incompetent.  But say it and we did.  It would be difficult in finding work without good references.  "That guy is incompetent" your old boss would say.  That's just.  The only person hurt is you as it should be... you were incompetent.  But all is not lost.  Eventually you'll find work with references from people on your side or by taking a step down in your career to rebuild.  Justice.  But not what happened in our economy.
I was turned away by HR... DAMN the Evil Rich!
Another way to lose your job is from a reckless incompetent boss.  This is the story Obama fed the public; painting rich bosses like opulent self indulgent lords who must have used company money to purchase livestock to sacrifice at their orgy parties in their mansions.  How evil!  They must pay for their incompetence!  And only the savior Obama can set things right!  Emotional... but not logical.

The rich aren't evil.  But let's say they are.  Who suffers from an incompetent boss?  A company like Hostess goes under and everyone loses their jobs.  Workers can cross the street to their competitor and be hired again.  Consumers haven't stopped purchasing a company product or service.  Say there are 100 people buying 100 cupcakes.  1/5th of those are made by your company, Hostess.  With your company gone, those people are still buying 100 cupcakes, only now instead of buying Hostess they buy the competitor.  The competitor absorbs the increase in sales.  But with 20 more cupcakes needed to supply a hungry public, they'll need to hire more people.  The very people laid off by Hostess in the first place.  The only people not hired are the incompetent. In particular, the incompetent bosses.

Finding new work won't happen quickly.  It may take 1 to 6 months to settle in.  But that's what unemployment insurance is for.  We have not seen a dip in the economy.  We are in a depression.  A long prolonged unemployment with a grim future.  This wasn't the evil rich.  Obama's narrative is pure fantasy feeding off well justified fears and anger of losing work with slim prospects.

The third way you can lose you job is basic capitalism; people buy stuff differently.  Over recent decades, people stopped buying the heavily processed Twinkie as much as they use to in favor of more natural and expensive alternatives.  (Ironically Obama's wife pushing a non-obesity agenda doesn't help sales.)  With sales declining there's less money for workers.  But unions push for more money not less and thus a stale mate is reached.  Everyone loses their jobs.

Hey kids! I lost my *&^% JOB!
Who is hurt?  The rich can either retire early or find new jobs.  After all they successfully ran Hostess until costs couldn't cover the loss of consumer interest.  The workers however cannot find new jobs as competitors aren't hiring.  Not because the worker is incompetent but because 100 people are buying the product anymore;  80 are.  There is no hole to be filled.  This is capitalism and a truth Obama has no understanding of.  What makes our president dangerous is that he is misleading a majority of the country.  Either deliberately, making his motives sinister or through his own incompetence.     

Before we curse capitalism, what is the solution?  Adaptation.  Hostess needs to make another product or change their existing product.  Perhaps they make a healthier more natural Twinkie.  Or perhaps they acknowledge their product is processed sugar and focus on it being like anything else that tastes great; it's not necessarily good for you.  They can offer fried Twinkies competing with carnivals and fairs across the country who breathed new life into an old product of a bygone era.  Adaptation is what makes nature tick.  It's how life survives in this world and why capitalism is natural and just.

Ironically Liberals don't get this...
It's a true story that Obama and his supporter refuse to see.  Adaption is not easy and takes time.  Which is the situation we're currently in and why 6 months of unemployment insurance may not be enough to re-think your career.  Government can aid in making individuals and industry more free to move and stretch, trying out new things, exploring and experimenting.  This is called de-regulation.

What is the alternative to adaption and capitalism?  A Hostess subsidy?  Have tax dollars pay for maintaining jobs to manufacture products consumers don't want?  A Twinkie mandate forcing consumers to pay for products to support a dying factory?  Increased regulation and taxes on Hostess competition and decreased regulation and taxes on Hostess themselves?  While it may immediately save many jobs, seems Santa Claus like and paints competition as evil and "out of touch", liberalism itself is out of touch with the real issue; consumers are buying things differently and we must adapt to change if we are to survive.

How ironic Obama and his supporters tout change when they themselves refuse see and teach how nature really works.

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