The World Eight Years After Obama: How the Economy Will Work

The Economy After Eight Years of Obama

Here's another Stogie analogy as to how the economy works.

The economy has been likened to a pie.  I am now likening it to a pot of soup, made by hobos out by the railroad tracks, another five years from now, near the end of Obama's second term as President.  The hobos used to be bankers but that just doesn't pay much anymore.

Each hobo brings something to create the soup:  a piece of ham, an onion, a potato, etc.  But how to divide the soup, that is the question.

The hobo who puts in a piece of ham insists his contribution is more valuable than the others, and so demands two cups of soup or he will take his ham and skedaddle.  The others agree, as soup without any meat isn't so great.  Three others bring an onion, a potato, and a tomato.  They each get one cup of soup.  The remaining two hobos bring minor ingredients:  some celery and some salt and pepper.  They each get only a half cup of soup, since they didn't contribute that much.

See the pattern  here?  In the simplified economy after eight years of Obama, certain economic realities will still hold sway.  Number one is that you get back in proportion to what you produce.  If you want more you must produce more.  The economy is one big exchange of goods and services; those who bring only their appetites to the table are called Democrats will get little in return.

Now the soup is ready to serve, but a group of radical hobos sweep down from another camp, swipe all the soup and eat it themselves, shouting "hobos before profits!"

These robber-hobos represent a second economic reality:  there will always be bums who think they are entitled to take what you produce.

THE END

"People Before Profits": Why That Slogan Is Pure Idiocy

Bakers are really greedy people.  Although they are only .00234% of the population, they control 54% of the pies. This just isn't fair.  Or is it?

Let's see -- the bakers buy the flour, the fruit, the sugar, the pans and also pay for the electricity to bake the pies.  Then there's rent on the bake shop, a business license, utilities, insurance, office supplies, etc, etc. Let's say it costs the baker $5.00 to make each pie.  In order to pay himself, he needs to sell each pie for more than $5.00.   The excess amount over the $5.00 in costs is called profit.  

Profit is not a dirty word, it is a necessary part of the economy.  Without profit, the businessman cannot pay himself.  If he can't pay himself, they foreclose his mortgage, turn off his lights and water, repossess his car and he has to go on food stamps.  It ain't pretty.  However, profits allow him to be self supporting, to pay his mortgage, utilities, car payments, insurance, food, health care, education and entertainment.  In other words, his profits not only support him and his family, they also allow many others in the economy to stay employed as well.

So if each pie costs the baker $5.00 to make, he may need to sell each one for $6.50 (as an example) in order to recover his costs and make a profit.  There would be no point in selling each pie for what it cost, because then the baker would be working for nothing.

So when someone says that businesses should provide goods and services for free to put "people before profits," you are dealing with an idiot.  Profits are absolutely necessary or people suffer economic want and poverty.  "People Before Profits" is a rationalization for theft, a form of slavery for the working man, who must work to provide others with goods they haven't paid for.

"People Before Profits" cannot work, because no working person or business or rich guy can continue to produce goods and services without profits.  When there are no profits, the business shuts down when the cash is all spent.  Then that baker above closes his shop and there are no more pies for anyone, including those who are willing to pay for them.

The moral to this story is that if you want to live in a society of increasing scarcity and poverty, become a liberal and say really dumb things like "People Before Profits."