the Messiah flunks Ec 101

May 12, 2009 30 Replies

Last week, the emperor said: "If the Japanese can build an affordable hybird, I don't see why we can't as well."



Quiz time: why is this statement fatuous? Which fundamental principle of economics is the Plunderer-in-Chief ignorant of?


For extra credit... he also said: "If your'e shopping for a car, I hope you'll buy American" Same exercise as above. (hint: it inviolves the same principle)


-- Rich


The Japanese *like* repetitive work?

Tim

Nothing obvious from that. *I* don't see why US companies can't and he's not even an engineer. They may not be as cheap as the Japanese, but they could certainly be "affordable" such that they could take a substantial portion of the market if people would buy them. There's nothing really technically difficult or proprietary in a hybrid.

Almost certainly a truthful statement. It likely would have been stretching things had he claimed that *expectation*, however.

What's the secret principle "invioled", Rich? Does it look a bit like loose tea and come in a ziplock bag? ;-)

Ford already has - they introduced the Fusion Hybrid a couple of months ago and it is getting very good reviews.

kevin

I own a Toyota Corolla, which was built in Fremont, CA, and a Buick Century which was built in Canada So, which *American* car am I supposed to buy?

Tom P.

I own a bicycle and I screw the government out of all the tax on tags, tires, and gas and any profit on a GM car I'll never buy.

Buy some GM stock why don't you.

I smile big while I peddle.

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Cheers, James Arthur

You wont be smiling when I run you over, child.

I own a bicycle too. Unfortunately it is 1:15 by bike from home to work. That is a longer commute time than I like so I almost always drive. I drive on the poorly maintained roads that I help pay for.

... [something Spehro evidently didn't like much...]

Around here, it comes in a very appropriately named "Glad bag." %-}

(And it looks more like oregano.) ;-)

Cheers! Rich

What are you peddling? Stuff that makes people smile?

If you're talking about propelling your bike, that's "pedal"

Thanks, Rich

Finally, somebody shows a 3 digit IQ... all right, that's part way to the answer, carry on...

-- Rich

Will makes some good points, but still misses the theoretical argument.

-- Rich

Nothing obvious... which explains why no one gets it (or remembers it). Don't feel bad, you have about

5.999 billion fellow humanoids to keep you company...

Truthful, in that he believes it... of course, if someone says something, with sincerity, it must be true...

The principle involved in Paul Krugman's 2008 Nobel (who makes me puke, but still a first rate academic).

Dig out your old macroeconomics notebook, look up Ricardo (David, not Ricky)

Now we know why you never learned... you were too busy with extracurricular activities...

-- Rich

Well, I already posted a link, but I'll summarize:

The Japanese lose money on hybrids here; they're just playing the CAFE game so they can sell the bigger, profitable cars.

Detroit was playing the same game, not as well, with bigger cars, and with much higher costs (=UAW).

The last thing they need now is a loss-leader.

So that's the economic answer.

But of course the answer you were looking for was: "Japanese hybrids _are_ made in the USA."

Toyota, for example, makes their Camry Hybrid in Kentucky.

Cheers, James Arthur

Incorrect (even though that point has merit). The answer I'm looking for is the textbook macroeconomics explanation.

Large scale problems follow from large scale ignorance... including the Messiah and his court jesters...

-- Rich

I really only know two things about economics instructors, one most are nut cases that should be locked away as threats to society, and two the think the understand alot more than they really seem to.

I admit I'm flummoxed Comrade Rich. What could our Dear Leader possibly not know? What did I miss in econ?

Did Adam Smith write another book and call it "(Spreading) The Wealth of Nations" ?

I'll look forward to reading other's guesses.

Cheers, James Arthur

Q: What do you get when you put 5 economists in a room?

A: 10 different opinions.

(credit John Larkin)

Cheers, James Arthur

Money is printed *NOT* earned.

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