Category Archives: Business

Centrally Planned Scarcity

Barack Obama, Business, Capitalism, Economy, Free Markets, Political Economy, Regulation

In a free market, consumers direct supply and demand. And in a free market, increased demand leads to increased supply, as producers compete with one another to meet the demand.

We are being told that there is a “shortage of crucial medicines including cancer drugs,” and that “President Barack Obama on Monday signed an executive order aimed at remedying the shortage.”

Remedying? Really? At least one of Mr. Obama’s regulatory sleights of hand will increase the scarcity it seeks to remedy: hounding drug sellers for “charging exorbitant prices for scarce medicines.” High prices for scarce goods are what help to harmonize supply and demand.

Alas, “You can’t fix stupid”. The reported shortages in 178 drug—most involving older, generic, cancer drugs administered by injection, as well as antibiotics to treat infections and nutritional drugs for patients who can’t eat—would have been rectified in an unimpeded market:

The shortfall of supply has obviously followed a sudden urgent demand for these drug. Large demand and short supply would initially send the prices of these drugs rocketing. Profits in an unhampered pharmaceutical market would signal to the many drug makers that it’s time to enter into production.

Mr. Obama, however, has taken further action to shortcircuit the street signs of the market—profits.

When there is a shortage of a good in a highly regulated market such as ours, it is safe to say that it is a result of government incursion into the economy. Somethings gets between the market and the consumer—in the case of these drugs, the culprits are Food and Drug Administration regulations and the patent system, which gives a drug company a lengthy monopoly over manufacturing.

UPDATED: Miseducation Bubble (The Marketing Energizer Bunny)

Business, Debt, Economy, Education, Government, Welfare

“The housing house-of-cards was not the only ‘bubble in search of a pin’ in the modern-day USA. The intellectual bubble is also begging to be burst.” (May 8, 2009) Students have acquired an empty education—for example, a masters degree aimed at “working with nonprofit organizations”—so as to qualify for work in niche “specialties” which are very often spawned and sustained artificially by state-issued fiat money. “The second highest source of income [for nonprofits] is government grants or contracts.”

New York Post: “John Smith, 31, of Brooklyn, works part time at a Trader Joe’s because he hasn’t found work in his field for over a year, despite having a master’s degree. He has about $45,000 in student loan debt. His girlfriend, Meropi Peponides, 27, a graduate student at Columbia University, will have over $50,000 by the time she graduates. … Smith said he has sent out about 200 resumes in his search. He’s looking mainly for work with nonprofit organizations.”

“For the first time, Americans owe more on their student loans than they do on their credit-card bills, with a tally that could soon top $1 trillion — leaving millions of Americans with a crushing debt burden at a time when decent-paying jobs are scarce.”

MORE.

UPDATE (Oct. 24): THE MARKETING ENERGIZER BUNNY. As JP noted, one needs a formal education for a few highly skilled disciplines and professions. For the rest, the return to a classical, canon and core-curriculum oriented education—what used to be called traditionalist—is crucial in secondary school. Someone who can afford it ought to be encouraged to soak up the Western scientific, literary and philosophical canon as a first degree. But this elusive liberal arts, mind-growing education is rare and expensive.

Conservatives are no different from progressives in this matter. How often do you hear the mantra from Beck, “We need to teach kids how to think, not what to think.” Not you don’t! When you expose a child to the riches of the Western canon through top-down, teacher-focused teaching—his mind develops. Teach a youth of Socrates and his analytical method—and what do you think will happen over and above dendritic proliferation in the brain? Higher-order thinking. Ask a child to distill the central idea in a complex essay (which does not deal with diversity or other brain-deadening constructs). Don’t praise him when he gets it wrong. See how well PROCESS works for his thinking. The same holds with math, science, etc. This is what used to be called an education.

Back to fluffy bunny degrees. Marketing is another. The “marketing” types I’ve encountered know little and do NOTHING. They have various degrees and they write letters festooned with “enthusiasm,” “passion,” adoration for the product, Kumbaya, and the occasional obligatory requests for “feedback”—don’t waste your time; they’ll discard or have a panic attack if your recommendations entail pragmatic, result-oriented steps. That’s too much like work. A lunch meeting to discuss your “concerns” or “options”: now that’s the lingo and “action” they are comfortable with.

The marketing types I’ve encountered are incapable of planing and executing the most basic and logical of plans. In my case, they don’t know what an Alexa rank is, and so are positive that their site, ranked 16 millionth by Alexa is where your book sales originate. (Mine, of course, originate on ilanamercer.com, WND.COM and Amazon, and years of GRAFT.) They have no idea how to look at a client’s reach and product and match her with her target buyers. They are incapable of divining their client’s market and optimizing it. You’ve wasted scarce time and energy if you’ve written practical, logical, point-form suggestions for these types to follow.

Some “businessmen” derive masochistic pleasure from rotating these fluffy bunnies (as my husband calls the marketing persona), at considerable expense, one would imagine.

I believe that as an author who does most of the heavy lifting on these sites (which you all enjoy, and wish to support, I hope), I know more about marketing a book to a niche market than the marketing laggards I’ve encountered.

Alas, they draw the salaries. But economic reality is changing this last fact.

The one extremely bright person I have had the pleasure to work with on my last book project was a 20-year old home-schooled prodigy. No higher education. He learned superb programing skills through a mentoring program in his church. However, his intelligence, quick mind unpolluted by the public school, as well as an ability to think clearly and at a speed enabled him to branch out. Needless to say that such abilities and ethics are rare in our workforce. He was quickly poached for managing far bigger projects.

The latter programmer/developer was the only person I’ve worked with who was able to read an email (I number each task clearly. It’s the kind of methodical habit of mind one once acquired at school vicariously; at least I did), answer it, while addressing each of my points/concerns, and then promptly return a demo.

Frankly, well-structured, logical emails that enumerate tasks to be accomplished and problems to be solved have usually elicited a deathly silence in all other programmers/marketers with whom I’ve tried to engage. That’s scary!

Fortunately, and as I also learned in school, breathing is controlled by the autonomic nervous system. Were this not the case, the human energizer/fluffy bunny would already be extinct.

‘The Program’ Behind The Occupy Wall Street Protests

Business, Capitalism, Democracy, Economy, Individual Rights, Political Economy, Political Philosophy, Private Property

Tired of listening to mealymouthed left-libertarians laboring to find commonalities with the Occupy Wall Street “sleepover”? You should be. I know I am. I have no sisterly solidarity for socialists.

Here’s the stark reality of this extravaganza: Within the buildings are people beavering away, working for a living. Railing against them without—sitting idle in the parks, streets and on sidewalks—are individuals who trash, scream, sleep for hours on end, loiter, strip down and publicly body-paint each other, copulate and defecate.

Economist George Reisman dissects the farrago of economic errors the protesters and their sympathizers commit: “What the protesters do not realize is that the wealth of the one percent provides the standard of living of the ninety-nine percent.”

Read “How a Highly Productive and Provident One Percent Provides the Standard of Living of a Largely Ignorant and Ungrateful Ninety-Nine Percent” by George Reisman.

UPDATED: Steve Jobs Was With Liberty

Barack Obama, Business, Capitalism, Celebrity, Economy, Intelligence, Technology, The State

As is to be expected with so private and guarded a person, the curtain on Steve Jobs’ inner life is being pulled back slowly, but surely. In the process, Jobs’ natural affinity for freedom is being revealed. The man who gave us Apple Inc. was obviously too smart to misunderstand the essence of liberty and how at odds BHO is with it. Jobs was on to the idiot Obama (and to racist and statist Bill Gates). Reports the HuffPo:

“Jobs, who was known for his prickly, stubborn personality, almost missed meeting President Obama in the fall of 2010 because he insisted that the president personally ask him for a meeting. Though his wife told him that Obama ‘was really psyched to meet with you,’ Jobs insisted on the personal invitation, and the standoff lasted for five days. When he finally relented and they met at the Westin San Francisco Airport, Jobs was characteristically blunt. He seemed to have transformed from a liberal into a conservative.

‘You’re headed for a one-term presidency,’ he told Obama at the start of their meeting, insisting that the administration needed to be more business-friendly. As an example, Jobs described the ease with which companies can build factories in China compared to the United States, where ‘regulations and unnecessary costs’ make it difficult for them.

Jobs also criticized America’s education system, saying it was ‘crippled by union work rules,’ noted Isaacson. ‘Until the teachers’ unions were broken, there was almost no hope for education reform.’ Jobs proposed allowing principals to hire and fire teachers based on merit, that schools stay open until 6 p.m. and that they be open 11 months a year.”

Jobs’ spot-on assessment of Bill Gates has to be my favorite revelation:

“Bill is basically unimaginative and has never invented anything, which is why I think he’s more comfortable now in philanthropy than technology. He just shamelessly ripped off other people’s ideas.”

So true.

UPDATE (1/3/2016): Alex Gibney, at CNN, trashes Steve Jobs, posthumously, in a one-sided, banal, “Why Can’t He Be More Like Bill Gates” bit of yellow journalism.