Thursday, April 30, 2009

Gresham's Chrysler

The Gresham's Law of Economics states that "bad money will drive out the good". What this means is that in ancient civilisations where the currency had differing intrinsic values, people would hoard the currency with the greater value and spend the currency with the lessor value.

Today's auto industry might be suffering from a similar fate. Although most have probably forgotten, the U.S. is still a free market economy. What this means to consumers-that's you and me-is that every business has to compete for our currency. Whether a business survives, thrives, or dies will depend upon that business's ability to lure you and I to hand over our hard earned currency in a mutually beneficial transaction. If there is someone else on the block that can deliver a better or similar product for less, then that business will thrive while the other will wilt; and unless it can get it's act together, die. As the famous saying goes: "this is business".

Enter: the Democrat Party

Now for some businesses who are plagued run represented by the UAW, who incidentally gave millions for the election of the current president because he was pro-UAW labor, a variation of this concept will be exhumed. So, if a business was thriving because it produced a better car for a better price, that is, it was more efficient; that same business now has to compete with another business that is oblivious to efficiency and exist for the purpose of creating UAW jobs, not automobiles. The inefficient business can do this because it is buoyed by money confiscated from the yet unborn. So the efficient and prosperous business will be driven away, uable to compete, so that the failed businesses can remain. But don't worry, your new car will be covered by the yet unborn also. So if it breaks down or somehow doesn't measure up to the the "mutual" in mutually beneficial, just take it back for the promised free car-care that the legitimate business could not provide, and so could not compete, without the assistance of the yet unborn.

Besides your friendly big brother government is working with a world renowned knight in shinning armor major player in the world automotive industry that will swoop down on its white horse and scoop up Chrysler in its strong arms and save it: Fiat.

Its all gonna probably look kinda like this:


Susan said...

We know where this is going to end!!

I admire your ability with words and thought and most of all message.

Elizabeth said...

Very thought provoking...You are a great writer!

Dan said...

Thank you so much for the encouragement Susan and Elizabeth.

Kathy said...

Told 'ya so!

Mary Lee said...

yeah, me to!

Larry T. Durham said...

You nailed it BG. The aforementioned Marxists Knight and Marxists environmentalists have buthchered business in the US. They see themselves as the "rightful owners" of American wealth. And they'll spend it until it's gone.