Showing posts from March, 2013

The Rich Get Richer Part 2.: A More Fair And Natural System

This presumes you read part 1.
This is the second story mentioned in “The rich get richer” post. This one removes the forces of money, interest and capitalism. It instead focuses on the labor part of the equation. Where the version of the story concentrated on an auction outside the bakery, this time we concentrate on the inside workings of the bakery. It shows how, when that is removed, a more natural driving force of creativity and invention results. It is a much shorter story where charts won't be required. (But I could if you really want one.

Back at the bakery
So, we return to our bakery. The same set up as in the previous post. A baker makes bread for a community of 10 families. All 10 have a single provider, and require one loaf of bread a day. The 10 people are exactly the same in every way. In this case though, the baker needs 5 people to work for one feverish hour every day. The work is hard and draining, but everybody is capable of doing it. He pays a l…

Petition on wage reform and minimum percentage idea

The White House offers a service that they will address any issue that can get first 150 people through email and FB alone and then it is opened to the public for 100,000 people visiting the website.  If nothing else it would be nice to have it addressed by Obama himself.  For those not familiar I have long advocated forcing a company to pay its lowest paid employee at least just 1% of its highest paid employee.  You pay your CEO $10,000 then pay your janitor 1% of that. He has to be worth at least 1% of your CEO's efforts.  
vote for it here.  Also Please forward it to people you think might be supportive of this idea!

Minimum Percentage Petition to White House web tool

If they really wanted to Ballance the Budget

The Rich Get Richer. The Futility Of Being Poor In The Capitalist system.

Let’s call it “The Alice in Wonderland principle”. Sometimes while trying to understand and explain something small, one stumbles upon something much bigger.  This happened to me writing this post. I set out to explain how in a community where there is no money, Only the barter system to acquire needed goods and services, people are truly equal.  What I found was a way to graphically represent the mechanics behind the fact and statement “The rich get richer”.  This is true and in the following text and spread sheet is how I arrived at that conclusion using nothing more than math. 

 Some Basic Economics Laws.   First, “Value” is defined as the highest price of a good or service that a consumer has both the desire (willing) and resources (able) to pay for it. Imagine everything you buy at a store, online, or from a private citizen is a giant auction.  For one single Item, the highest bidder takes the “widget”.
 “Equilibrium Price”- The state in which market supply and demand balance eac…