Monday, November 24, 2008

...is this a false assumption?

I had a moment of interest in creating this study: a potential regression of sorts. It would look at what might be some exogenous factors that determine whether "the youth" vote more conservative or liberal through history. I really like this idea of looking historically to show trends. Though that line of logic always has held some merit to me, reading Joseph Schumpeter’s “Creative Response in Economic History” sparked my imagination again. I do agree though, that the constant battle that exists between a “the world never repeats itself” and “historical trends can predict future outcomes” is important to recognize, it is undeniable humans can be predicted to act with specific motives and this can be shown historically and is logical today as well.
At first I thought generally the youth are more liberal. This makes sense, right? Those crazy kids always F-up what we worked hard to achieve. But then I thought about it a while. Do we F it up? And Why is the youth more liberal, and I realized that this might be a false assumption. There have been obvious major shifts when liberalism may have become more popular among the youth but this phenomena may be due to other facts like war or lifestyle limitations. This makes perfect sense. If a policy restricts freedoms of a specific demographic that demographic is bound to resist. One would think that if the republicans were the party that opposed war, all other factors constant, then we might see more youth opting to be conservative and being more sympathetic towards some other conservative ideas they might have otherwise opposed based solely on party affiliation. Anyway, I came across this website that has demographic data on youth in America. Maybe we’re wrong. Maybe those ideas of tradition do flow more constantly then we think. I would predict that “the youth,” in America, being more liberal as a demographic is a direct result of infractions on their liberty. The Vietnam War, Prohibition, and all the other crap the government does against young’ins. This is what makes youth liberal. I predict a lower rate of leftism among the youth during times of media stagnation and less degradation of the youth’s freedom. http://www.civicyouth.org/

Sorry I just dorked in your face reader... I'll get you a napkin.

Friday, November 7, 2008

The Government doesn't know how to Stimulus my Package.

Love it!
I thought of that title on my way to the bathroom at work. As I passed a co-worker I said "the government doesn't know how to stimulus me..." and she added to icing to the cake to make it title-tastic.

One of my bosses told this story to us to explain inflation and it totally relates to the aforementioned magna-title.

Imagine I have a room full of people and it is an isolated functioning society. They all go to sleep and I slipped one dollar in coins into their pocket before they wake. When this small society wakes up they all have a dollar and they all begin living their individual daily lives. Soon people self-select into specialties and because they have currency in the form of a dollar they trade amongst themselves to acquire other necessary components that they do not individually have the time to provide for themselves. This is roughly where we are now except we evolved to be here and we didn't all just wake up one day with a buck in our pocket. Not to mention we're not all locked in a room and a creepy man doesn't sneak around slipping money into our pockets... at least not all of us. Work with me here people... the analogy is good, just trust a little.

So what say you if everybody goes to sleep after the first day. People have accuired un equal incomes through out the day. This is a perfect manifestation of the fact that some commodities of life are worth more than others and people are willing to pay a little bit more out of their dollar for those specific goods. That is to say... if I were locked in a room all day I might pay a little bit more for a bite to eat then a basketball. It's just subjective value.

So everyone is asleep again and I walk around and slip ten dollars into everybody’s pocket as they sleep... Naturally when the society wakes they will rejoice with their new found riches. Yesterday the individual only had a dollar, now they have ten and what a day to be rich!!

That's not where the fairy tail ends though... you see when they go to their little market place and trade their dollar for what ever it is they demanded they soon realize that everyone has 10 more dollars and... suddenly what was one yesterday is suddenly the same as ten today.


In a large market economy this process is called inflation. It doesn't happen immediately because inflation never gets realized by the dollar value in the primary transactions of infused money. It is a response by the market, that is dealers in the market, to a deflated monetary value. So yes, in the short term a stimulus package will get people to buy and energies the market but it's a lie because everybody has more money proportionally. So I'm not stimulated sorry government... not tonight. I'm going to bed.