Tuesday, May 18, 2010

The #1 Economic Fallacy

Bob sees that Tom is selling oranges.
Bob to Tom: "What is your price for oranges ?"
Tom: "One shekel per orange."
Bob: "Agreed. Give me ten oranges, here is ten shekels for you."
Whereupon Bob delivers to Tom ten shekels and Tom delivers to Bob ten oranges.

The common belief - Bob's wealth has lessened by 10 shekels.
The economic truth - Bob's wealth has increased. IN-EFFIN-CREASED (He prefers ten oranges to ten shekels. Likewise, Tom's wealth has increased.)

The fortunes that the sellers amassed were not a deduction from the buyers' wealth. Buyers and sellers both gained from these transactions or the transactions wouldn't have continued. 



                                   Thank you, Google Alerts.

I have no idea who Emily Lebsack is, whether she is the photographer or the subject,

but if a woman from Wyoming travels to Oakland, California for a college degree and this is the result -- Happy, Happy.

Mills College - Oakland, California

Uncle Tim has worn the graduation robe twice and I don't recall anyone like this hovering near the ceremony. 

If UTD is anything like Mills College ? - Nephew Josh, study hard but also enjoy your college years.


             Shakespeare in the Courts


                    Bears may shit in the woods but not hunters

Anna Dunbar, regional director of the Texas Commission on Environmental Quality's Waco office - Outhouses of this sort are "strictly prohibited."



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