Shaky Danny

One proof of the market is that economics is obscure. Because of patronage there is no advantage stating the simple obvious.   As I am not getting a grant, I can be direct. Inflation is manifest differently in each of its many components. My parents bought their house for almost $12,000 in 1959. That was about twice my father’s yearly salary. Today the house is almost half a million in Zillow which would be about ten times the salary of a comparable position, give or take. There are some equivalents. Maybe there is a correspondence between a year’s college tuition and a new car. The social security cutoff seems to be about what it takes to comfortably support an upper middle-class family of four. Inflation has two classes: wage inflation and capital inflation. There is no government control of capital inflation. Wage inflation is controlled by four government agencies. The Department of Labor supervises unions. Immigration is restricted. Commerce allows imports. The Federal Res...

Samuelson’s Economics has an entire chapter worrying over wage rates and the efficient allocation of labor. Why do people change jobs? Samuelson would like to tie it to capital allocation, work duration…he doesn’t mention the insult factor. I know a guy who loved his job. He was proud of the job and the work he did. When he learned that someone else made more than him, it was too much. He quit even without another job to go to. Nothing else had changed. It was simply that he felt insulted. Managers fail to understand the insult factor. Headhunters understand it. Unions understand it. Customers understand it. Why go through the folderol of a manufacturer’s rebate? If you are getting points, then someone else is getting ripped off. When the price at the aisle doesn’t match the register, you feel insulted. Bombing me with ads texts and emails after I have bought the product is discouraging. When a headhunter offers a better deal, it feels like your own company doesn’t value you. Co...

The Supreme Court functions as a safety valve. When the court fails, it is a big mess, we have had a civil war. In 1974 people were voting with their feet. Illegal abortion was so prevalent that the court had to act. The prisoner’s dilemma underlies our concept of justice. Say a juror is fixed. How does the juror know that they will be paid? If they are paid ahead of time, how does the fixer know the juror will stick? At this time, it has been announced that there are five judges who will rule against abortion. The early decision is a blatant loud fart. As Biden explained, it ignores the ninth amendment. The ninth amendment is intended to prevent this argument. As Pogo said: -I got rights I ain’t even used yet! If privacy or women’s equality are rights, then abortion should be legal. Buttigieg explained why abortion, whatever the term, should be a private family, not an arbitrary government decision.  It is a difficult medical and personal decision made in hard circumstance...

  Next time you see some little darling tormented with multiplication tables, have them make up a grid and fill it in themselves. It is easier to remember with context and seeing the relations between numbers. Be sure to point out the square’s diagonal. They can also build grids for the other operations, just for fun.