At its most basic, economics is the study of the allocation of scarce resources among unlimited desires/needs. Today we explore economics around the world. In particular, at how different groups of people allocate those scarce resources. It is quite a group of groups assembled, and quite amazing that there can be so many different economic systems.
Pick your favorite.
A TALIBAN: You have two cows. You turn them loose in the Afghan "countryside" and they both die. You blame the godless American infidels.
ENRON: You have two cows. You borrow 80% of the forward value of the two cows from your bank then buy another cow with 5% down and the rest financed by the seller on a note callable if your market cap goes below $20B at a rate 2 time prime. You now sell three cows to your publicly listed company, using a letter of credit opened by your brother-in-law at a 2nd bank, then execute a debt/equity swap with an associated general offer so that you get four cows back, with a tax exemption for five cows. The milk rights of six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more and this transaction process is upheld by your independent auditor and no Balance Sheet provided with the press release that announces that Enron as a major owner of cows will begin trading cows via the Internet site COW (cows on web).
A REPUBLICAN (Yank): You have two cows. Your neighbor has none. So what?
A DEMOCRAT: You have two cows. Your neighbor has none. You feel guilty for being successful. You vote people into office who tax your cows, forcing you to sell one to raise money to pay the tax. The people you voted for then take the tax money and buy a cow and give it to your neighbor. You feel righteous.
A COMMUNIST: You have two cows. The government seizes both and provides you with milk.
A FASCIST: You have two cows. The government seizes both and sells you the milk. You join the underground and start a campaign of sabotage.
DEMOCRACY, AMERICAN STYLE: You have two cows. The
government taxes you to the point you have to sell both to support a man in a foreign country who has only one cow, which was a gift from your government.
CAPITALISM, AMERICAN STYLE: You have two cows. You sell one, buy a bull, and build a herd of cows.
BUREAUCRACY, AMERICAN STYLE: You have two cows. The government takes them both, shoots one, milks the
other, pays you for the milk, then pours the milk down the drain.
AN AMERICAN CORPORATION: You have two cows. You sell one, and force the other to produce the milk of four cows. You are surprised when the cow drops dead.
A FRENCH CORPORATION: You have two cows. You go on strike because you want three cows.
A JAPANESE CORPORATION: You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce 20 times the milk.
A GERMAN CORPORATION: You have two cows. You re-engineer them so they live for 100 years, eat once a month, and milk themselves.
AN ITALIAN CORPORATION: You have two cows but you don't know where they are. You break for lunch.
A SOVIET CORPORATION: You have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have 12 cows. You stop counting cows and open another bottle of vodka.
A MEXICAN CORPORATION: You think you have two cows, but you don't know what a cow looks like. You take a nap.
A SWISS CORPORATION: You have 5,000 cows, none of which belongs to you. You charge for storing them for others.
Mooo!!!
Pick your favorite.
A TALIBAN: You have two cows. You turn them loose in the Afghan "countryside" and they both die. You blame the godless American infidels.
ENRON: You have two cows. You borrow 80% of the forward value of the two cows from your bank then buy another cow with 5% down and the rest financed by the seller on a note callable if your market cap goes below $20B at a rate 2 time prime. You now sell three cows to your publicly listed company, using a letter of credit opened by your brother-in-law at a 2nd bank, then execute a debt/equity swap with an associated general offer so that you get four cows back, with a tax exemption for five cows. The milk rights of six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more and this transaction process is upheld by your independent auditor and no Balance Sheet provided with the press release that announces that Enron as a major owner of cows will begin trading cows via the Internet site COW (cows on web).
A REPUBLICAN (Yank): You have two cows. Your neighbor has none. So what?
A DEMOCRAT: You have two cows. Your neighbor has none. You feel guilty for being successful. You vote people into office who tax your cows, forcing you to sell one to raise money to pay the tax. The people you voted for then take the tax money and buy a cow and give it to your neighbor. You feel righteous.
A COMMUNIST: You have two cows. The government seizes both and provides you with milk.
A FASCIST: You have two cows. The government seizes both and sells you the milk. You join the underground and start a campaign of sabotage.
DEMOCRACY, AMERICAN STYLE: You have two cows. The
government taxes you to the point you have to sell both to support a man in a foreign country who has only one cow, which was a gift from your government.
CAPITALISM, AMERICAN STYLE: You have two cows. You sell one, buy a bull, and build a herd of cows.
BUREAUCRACY, AMERICAN STYLE: You have two cows. The government takes them both, shoots one, milks the
other, pays you for the milk, then pours the milk down the drain.
AN AMERICAN CORPORATION: You have two cows. You sell one, and force the other to produce the milk of four cows. You are surprised when the cow drops dead.
A FRENCH CORPORATION: You have two cows. You go on strike because you want three cows.
A JAPANESE CORPORATION: You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce 20 times the milk.
A GERMAN CORPORATION: You have two cows. You re-engineer them so they live for 100 years, eat once a month, and milk themselves.
AN ITALIAN CORPORATION: You have two cows but you don't know where they are. You break for lunch.
A SOVIET CORPORATION: You have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have 12 cows. You stop counting cows and open another bottle of vodka.
A MEXICAN CORPORATION: You think you have two cows, but you don't know what a cow looks like. You take a nap.
A SWISS CORPORATION: You have 5,000 cows, none of which belongs to you. You charge for storing them for others.
Mooo!!!
OK that is funny. I am going to have to copy that and show it to some of my friends
