The Problem is Big.
Posted on Apr 17, 2009 - 3:05am by Everitt Mickey in Business, Economy, News
By that I don’t mean that we have a big problem, although we do. What I mean is that often time bigness itself is a problem.
About sixty four million years ago, an asteroid is supposed to have impacted the earth some distance south of Texas just off the coast of the Yucatan. It caused havoc. In the ensuing years everything BIG died off (along with much else). The dinosaurs for example. This extinction gave those pesky little mammals a chance to develop.
This is a well known example of bigness being bad. Big animals just didn’t seem to do very well when their world turned upside down. Dinosaurs were VERY big, mammals were not. The big dinosaurs didn’t adapt to the changing environment, the small mammals did.
Thus, a basic fundamental principal is illustrated. That is, in a risky environment small and agile beats large and clumsy just about all the time.
This principal applies to economics as well.
An example or two.
Quiet a few years ago Enron went bust. Enron was HUGE company in the energy (and much else) field. Due to something called a “liquidity crisis” it went bankrupt. It’s collapse caused a great deal of grief.
Not to long from now General Motors is going bankrupt. When it does there will be havoc and desolation. Some folks will be upset.
Bigger is not better and “too big to fail” is incorrect. When a company, gets “too big” relative to it’s environment it’s a “dinosaur”. It is then susceptible to the same thing that did in the dinosaurs. A sufficiently severe “environmental” shock will destroy it.
Our government is HUGE. It’s grown beyond all imagination. It’s already a dinosaur just looking for it’s environmental shock. China is waiting, as are the Muslim Radicals. Either one might be an environmental shock beyond all imagining. Our government need to be lean and able to adjust quickly, not a bloated dinosaur.
The Washington Incumbents (Most Federally elected politicians, most of the Left Wing Main Sewer Media, lots of lawyers, union bosses, etc, etc etc. ) don’t recognize this principle or don’t care. Bigger is better they think. Tax and spend, or lately…just spend. They don’t have a firm grasp of the obvious.
Governor Rick Perry of Texas is an apparent rarity among elected officials. He can recognize the obvious. He supports HCR 50
Some people think we have been Taxed Enough Already. They too, recognize the obvious and want to avert catastrophe. They want to slim down government while there is still some (slim) chance.
Show your support by attending a Tea Party near you.
Caterpillar exiting truck engine business.
RSS feed for comments on this post | Trackback URI
We're on Twitter!
Well said sir.
Sound reasoning, Everitt.
Aaah, but we are all racist rednecks for disagreeing with Our Leader’s policies! Yes, this is all about the color of The One’s skin rather than how badly our pockets are being picked!
According to PJTV, which is trying to count the numbers that attended the Tea Parties, they’ve got a total of 619,568 so far. . .and they dont even have a list of all of the events. There was NO central planning, NO big funding, NO government coordination. There were also no instances of vandalism, no need for police intervention and only one arrest (some gal was impeding traffic on Big Beaver Rd in Troy, MI). In groups of 50 to 15,000, they came-in their wheelchairs, with their walkers and their canes. They brought their kids, they gave the Pledge of Allegiance, they prayed-publicly-and they demanded their country back!
Even though there were varying ideas as to what their main grievances were, all agreed that they wanted government out of their wallets, their workplaces, their churches, their living rooms and their lives. Government is big enough to fail, but the American citizens aren’t! This may finally be the end of the usual suspects being voted back in over and over while they pick our pockets! I wonder what Arnold thought with hundreds of citizens outside the capitol in Sacramento shouting, “Come out here! We want to talk to you!” Now, that’s change WE can believe in!
If you doubt the American people are creative, just take a look at some of the home-made signs they came up with . . if I was a Senator or other politician, I’d be damned worried!
I CAN CREATE 15 MILLION JOBS ALMOST OVER NIGHT right here in America !!!
Here is my Job creation Computations:
+++++++++++++++++++++++
Total USA Imports in 2006:
——————-
$ 2,211.7 billion —– Total Imports.
$ 309.4 billion less — (minus spent on Imported Crude Oil)
————————
$ 1,902.3 billion / 30 billion=63.41 million jobs lost from Imports.
+++++++++++++++++++++++
Total USA Exports in 2006:
————————
$ 1,451.7 Billion / 30 billion=48.39 million jobs America gained from Exports
If USA Pulls out of NAFTA and WTO right now:
USA would absolutely gain a total of 63.41 million Jobs by Manufacturing all IMPORTS right here in the USA.
So, 63.41 minus 48.39 = 15.02 million NET JOBS GAIN. But, a lot of Exports must be purchased in the USA. That would mean an even more jobs.
My calculation means an ABSOLUTE 15.02 million Jobs gained if the rest of the world did not buy even one penny of USA EXPORTS.
SO MOTE IT BE.