link: http://bit.ly/1Z45XNt
Hot And Trending...
Trending
- Bitcoin is a bit of a lobster pot — it’s easy to get in, but hard to get out. Gold also offers investors 4,000 years of history as a store of value, and that’s looking quite appealing right now. http://bit.ly/2DrHoEJ
- Puerto Rico Is the Only Place in World where Americans Can Be Free (Video) @SchiffGold http://bit.ly/1PBTGHv
- I added a video to a @YouTube playlist http://bit.ly/2C8qMSq 🔴 Conditions Ripe For 1987-Style Stock Market Crash
- Excellent Comic Strip Explains Our Situation
- Deflation caused by economy growth makes people richer, right?
- #Gold is back above $1,230. @jimcramer and #DennisGartman are waiting for a pullback to buy. It could be a long wait!
- Trying to write a very concise explanation of what the Fed does when it engages in QE. Help appreciated
- I will be on the @Benzinga #PreMarket Prep show tomorrow at 9 a.m. EST! Tune in here: http://bit.ly/1RXB5uD
- I believe that this year, the dollar is going to hit an all-time record low. I think we’re going to crack below 6-to-1 in yuan. http://bit.ly/2of79zv
- Sept. Richmond Fed Manufacturing Index fell to -5, its lowest level since Jan. 2013. The average work week is now the lowest in 6 years!
Monday, January 4, 2016
The Plenkton Effect: When increasing productivity is accompanied by decreasing affordability, due to regulation and efficiency changes.
* The Plenkton Effect: When a consumer product's affordability: a. increases while the consumer's productivity decreases (or stays constant), or b. decreases while the consumer's productivity increases (or stays constant) ...because of changes in efficiency or regulation, where regulation includes safety/quality, but not subsidies/tariffs. Affordability changes due to efficiency changes may be caused by: -economies/diseconomies of scale. When a product's sales decline/increase, affordability decreases/increases. Example: When auto parts for old vehicles are no longer being manufactured en masse, the small scale manufacture of such parts happens on a smaller, more expensive scale, per unit. -costs of production. When production costs increase/decrease, affordability decreases/increases. Example: When ivory became rarer and harder to acquire, the price of pianos with ivory keys increased. Affordability changes due to regulation include: -safety. When product safety increases/decreases, affordability decreases/increases. Example: When airbags were made mandatory in vehicles, the functionality of a vehicle was the same, but airbags increased the cost. -quality. when product quality increases/decreases, affordability decreases/increases. Example: When milk regulations prohibit rBST from being used in milk production, the consumption of milk is incurred at a higher cost. -allowed housing development. When cities restrict the type/size/location of house-building, the utility of housing is incurred at a higher cost. Affordability increases (for a consumer with a static or increasing productivity) is expected and understood, decreases in affordability is strange. Decreased affordability caused by efficiency may happen naturally. Affordability decreases (for a consumer with a static or increasing productivity) seems counter-intuitive. This phenomena is caused by regulatory and efficiency changes. While efficiency changes are natural and uncontrollable, regulatory changes are unnatural and controllable. They decrease a consumer's ability to avoid decreases in standard of living. They are anti-human because they prevent consumers from determining the quality/safety of the products they purchase.