Posts Tagged ‘free market’

Price Controls on Books in Quebec, in France, and in Principle

Posted: December 6, 2013 in Economics, Freedom
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VENEZUELA-ECONOMY

When regulated on the low side, price controls can be devastating; as seen with the lack of toilet paper in Venezuela.

A while back I read an article on Mishs Global Economic Analysis blog about France doing something pretty strange. They wanted to make books more expensive. They didn’t come out and word it that way of course; they said they were trying to protect their culture of reading.

I found this argument to be preposterous, yet at the same time I wasn’t surprised, knowing the type of information people have when it comes to this field. This is why it came as no shock to see a very similar situation here in Quebec, with the government wanting to make books more expensive. There are some benefits to certain individuals, but it’s important to consider the costs as well, and what it means to our freedoms and overall prosperity.

In France, it was about stopping online retailers like amazon from being allowed to offer free shipping in order to protect the local bookstores, while in Quebec it’s about not allowing stores to offer too big a discount on new books.

Its price controls. When price controls are in place, they are never good; whether it’s to make things cheaper for consumers or more expensive to serve suppliers. (more…)

The 5 Laws of Decline – (#4) The Law of Diminishing Returns

Posted: November 1, 2013 in Economics, Freedom, Leadership
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law of diminishing returnsThe 5 laws of decline detailed by Orrin Woodward & Oliver DeMille continues with law #4. Previously we have seen how 90% of everything is crud, leaving a good possibility of bad people being in the wrong positions of leadership. We have also seen how people will always do the least amount of work possible for the most gains, including outright theft if there were no repercussions. The last law we looked at showed that if bad behaviors get rewarded, there will be more of it, and it will drive out the good.

The first 3 laws from ‘Resolved‘ and ‘LeaderShift‘ all tie together in how one law set in motion leads to another and makes it even worse. The 4th and 5th laws are a little bit different, but still connected in their own way

The Law of Diminishing Returns

I believe most of us know what this one represents, as it’s a basic law of economics and business taught to us in high school. For those of you who weren’t taught, or who may have forgotten, let’s review.

The principle is that when you add more of one good, or one action to a process, each addition unit being added produces less of an output than the previous unit did. As the return on each additional unit decreases, there will come a point where more units will not add any more output, and in fact will start reducing the total output. (more…)

The 5 Laws of Decline – (#2) Bastiat’s Law

Posted: August 11, 2013 in Economics, Freedom
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TheLawPreviously we had discussed the first law of decline; Sturgeon’s Law. This law stated that 90% of everything is crud, and showed how you can’t count on 90% of leaders and politicians to do the right thing without some kind of check in place to stop them. 90 percent of them will undoubtedly fall to the second law of decline; Bastiat’s law.

These laws come from Orrin Woodward‘s book ‘Resolved‘ as well as his and Oliver DeMille‘s book ‘LeaderShift‘.

A couple of years ago I read a book by Frederic Bastiat called ‘The Law‘. In this book, Bastiat goes through the concept of having a law; what it is supposed to be used for and what it then actually get’s used for. He shows how laws are supposed to be there to protect a persons property, and thus people themselves, but end up getting used to steal or harm people’s property.

Bastiat’s Law

Bastiat wrote a profound passage that Orrin Woodward takes for his second law of decline, which he first outlined in ‘Resolved: 13 Resolutions for Life.’

Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property.

But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder.

Now since man is naturally inclined to avoid pain—and since labor is pain in itself—it follows that men will resort to plunder whenever plunder is easier than work. History shows this quite clearly. And under these conditions, neither religion nor morality can stop it.

When, then, does plunder stop? It stops when it becomes more painful and more dangerous than labor. It is evident, then, that the proper purpose of law is to use the power of its collective force to stop this fatal tendency to plunder instead of to work.

– Frederic Bastiat, The Law

Bastiat’s law: Since men are naturally inclined to avoid pain, which labor is itself, it follows that they will resort to plunder whenever it is easier than work. (more…)

Freedom Has Arrived!

Posted: July 20, 2013 in Economics, Freedom
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freedomEver since I started on the LIFE subscriptions, I always looked forward to the next talk I would get on the subject of freedom or economics. I have always considered freedom to be one of my core principles, but at the same time I used to be a socialist; I had the wrong information on how the world worked. I had the wrong information on what was right. I thought the socialists ideas helped the poor, helped those in need, while stopping the rich from trampling all over the poor; did I ever have that backwards!

Through many of the teachings on leadership, economics, and freedom from the founders of LIFE, and their subscriptions, I have come to see the error of my ways.

I have come to see the value of free enterprise, and how it actually helps more people get jobs. I have seen how it actually gives people an incentive to get out of poverty and provides paths to do so. I have seen  how governments and big business’ use new laws and regulations to keep people dependent and in poverty; I’ve seen them use regulations to allow themselves to grow beyond where free enterprise would have allowed, at the expense of hard working citizens.

I have seen how important leadership is to bringing back lost freedoms (more…)

Introduction to Economics

Posted: April 15, 2012 in Economics, Freedom
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intro to econ

If you are new to the subject, this article will be for you. You will find no complicated formulas or theories here, just a few basic concepts. There will be some in depth explanations and examples through the embedded links for those who want to pursue the concepts further.

What is Economics?

Contrary to popular belief, you need no understanding of math to understand economics; logic and reason on the other hand can be of vital importance.

Economics is about choices. It is looking at the choices of what you or someone else does with your time and money. It also involves who is best to make these choices. It is about how people act and interact, which leads to how wealth is created and maintained. It is about incentives.
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Socialism: Sports vs The Economy

Posted: February 6, 2012 in Economics
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The following video was shared with me, either in the hopes of convincing me Socialism is good or as a joke, by someone who believes in socialist ideas. Although it may have been shared only in jest, it is very misleading and the issues need to be discussed. Please click the link to watch the video

Please click the link below if the video does not play

Bill Maher – Irritable Bowl Syndrome

The video leads people who don’t think past the information presented to believe that because there are positive socialist aspects in sports, it proves that socialism is good. It should be noted immediately however that the economy as a whole does not function in a limited environment like that of a sports system.
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