Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Saturday, February 13, 2010

Are High Divorce Rates Really a Bad Thing?

Before reading this, keep in mind that this is being written by a bald man who is married to a great woman, has been married for 20 years, and intends to stay married to her for the rest of his life.  The question isn't weather marriage is bad, its a question of weather marriage really needs to be the core of human relationships any longer.  For several decades we have seen marriage decaying as an institution, with divorce rates now reaching 50%.  What does this mean?  It means that if your newspaper annouces the marriage of 10 couples, 5 of those couples will be divorced.  For many years this has been the rallying cry for those who panic about the moral fabric of our society falling apart and has been the rallying cry of traditionalists to go back to the way things were done in the "good old days" to restore marriage.  But, is that really the way to fix the high divorce rate?  In fact, why do we assume that the increasing divorce rate needs to be fixed?

As in all things, its important to understand what we are really talking about.  Without really defining a thing, we can't really discuss that thing.  So what is marriage?  Although there is a lot of disagreement as to what a marriage really is , most of us would agree that a marriage consists of the following factors:
  • An agreement between partners to ensure sexual fidelity
  • A close bond of emotional intimacy
  • An agreement to share child rearing responsibilities in some way
  • An agreement on how to share financial resources
  • An agreement to ensure inheritence
  • A legal, social, and often, religious bond
In summary, marriage is a legal, social and sometimes religious, contract between individuals to stay within prescribed sexual guidelines, to share financial and child rearing responsibilities, and to ensure that wealth stays within the family. 

We also need to know how marriage arose.  Historians agree that marriage has been with us in different forms since the dawn of the human race.  From a historic/anthropological perspective, marriage was a necessary social arrangement that enabled the human species to survive during times of resource scarcity.
Women, physically not as strong as men, were not able to provide for themselves and their offspring.  Large game and defense required the greater size and physical power of males so women had to have a way to bind males to them to help obtain food for self and offspring and protect them from predators both human and non-human.  Men, on the other hand, didn't need women to defend them, but did need to ensure the survival of their own offspring.  A man also needed to know that when they he was risking his life to protect and hunt for a baby, that it was his baby and not another tribesman's.  Thus marriage was born. 

Marriage did not arise from loving or spiritual reasons; it arose as a means of securing and protecting resources in a primitive economy dependant on the brute force of physically powerful males.  As our social and economic connections became more complicated, the bond of marriage became enforced by governments and were sanctioned by spiritual forces, leaving little option but for people to enter marital bonds and to stay them.  After all, Mr and Mrs. Primitive are told, if the state and god say that they have to remain married, how dare they defy that order?  As man spread over the earth, the institution of marriage remained central to his existance because the subsistence, hunting/labor intensive society required it.

But is it still necessary?

In those days, women couldn't survive on their own because their relative physical weakness prohibited them from achieving material wealth on their own.  But is that the case any longer now that women have the same ability to earn money as the men?  Of course not.  In those days, men could not ensure paternity so had to use the threat implied in the enforcement of marriage to secure fidelity.  But in the days of DNA testing and paternity testing, is that still necessary?  Of course not.  Today, marriage is no longer a tool to ensure the allocation of resources but is, instead, a focal point for romantic love in the advanced economies of the western world.  The point of marriage is no longer resources; it is happiness.

Marriage is now entered into to find love and happiness with a romantic partner.  Since all of the original purposes of marriage can be met without a spouse, happiness is the only remaining purpose of marriage.  That being the case, there is no reason for us to consider a 50% divorce rate to be a social evil.  After all, if a couple is no longer happy together, why should they stay togther?  If the point is happiness, and your spouse isn't making you happy, why stay with your spouse.  And finally, why is that viewed as a social evil.

One of the reasons is always considered a problem because it is felt that the divorce process is difficult for children, which is true and how a couple handles there divorce is going to largely impact how traumatic the divorce is on the children.  Also, there has historically been concern over the fact that children from divorced couples are from "broken homes".  This, however, is only that way because the majority of couples did not go through divorce.  The only reason we recognize a home as "broken" is because the majority of homes are "unbroken".  Now, however, that distinction is becoming less and less relevant.  Being from a divorced couple is not difficult on the child if the divorce is handled responsibly by they parents in an environment where divorce is equally as common as not being divorced.  In such a case, fully half of the child's peers have a similar home life toher own weather her parents are divorced or not.  When single parenthood is the common state, then the stigma of being a child of divorced persons evaporates. 

This is very much akin to the trauma experienced by children who've had sexual relationships with adults. This is traumatic largely because of the extreme isolation children in this situation go through in a culture where sex with children is such a taboo.  In cultures where sexual relations and even marriage between adults and children is the norm, the trauma isn't there.  The trauma is largely a social construct.  (This is not to deny that usually, in our culture, sex with minors is usually of an extremely exploitative nature which also causes tremendous trauma for the child!  But this doesn't negate the point that even when the adult genuinely loves the child and isn't being exploitative, the child is traumatized in the long term because of the shame and isolation s/he experiences)

 My argument is that our aversion to divorce is largely due to the social habituation to marriage; the fact that marriage is traditional.  Since the original purpose of marriage is gone and has been replaced by the pursuit of happiness, it makes no sense to cringe at rising divorce rates because this is merely a sign of progress and the freedom of individuals, liberated from life in primitive conditions, to pursue happiness.

Mind you, I am a married guy.  I like being married and actually have, as a goal, to achieve a 100th wedding anniversary with Dina.  I am not against marriage, I am simply saying that marriage is not for everyone and that divorce is necessarily an evil.

Sunday, February 7, 2010

America punishes minority group with punitive taxation

Its true.  There are latinos, gays, blacks, jews, and native americans who are forced by the country to pay for half of the country's bills.  And if they don't pay, their property is forcibly taken from them and they are thrown into prison.  In fact, the IRS specifically targets them in audits.  Why are members of these minority groups punished with such brutal, punitive taxes?  What crime have these minorities committed to be punished in such a way?  Was it murder?  Treason?  Did they commit bank robbery?  No....it was something that the American voter considers even more evil than murder or rape.


Their crime was.... ....being rich!  

That's right, they committed the unconscionable crime of being fortunate, working hard and taking chances that worked out to their advantage.  Did I forget to mention that this is also the same fate of all wealthy people in America?  Their real criminal minority status isn't being black or gay or latino or jewish.  The minority status they achieved that led to their punishment is found, not in their house of worship or genetic material or their homeland; but in their IRS 1040 Tax Return.  When it comes to punishment by taxation, they are in the same boat as any other race or religion or sexual orientation or ethnicity.  After all, today's America would never punish them for such trivialities because, we like to think, we have moved far beyond blaming one group for our problems.  We like to think we don't victimize our neighbors for our own benefit we gleefully light the torches to burn the wealthy at the stake at every opportunity (though we all want to be rich!)


Today, America's hatred is directed at one minority more than any other....the wealthy!


Most Americans support punitively taxing this one minority group.  In California, the same voters who cry for equal treatment for gays (which they are absolutely right to insist on!) gleefully reversed their thinking as they voted to punish one minority group by making them pay 47% of the state's taxes while in, Rev Al Sharpton's back yard, New York City voters smilingly voted to force this tiny minority into paying half of all taxes.  And across the country Americans laughingly voted punitive taxes onto this one group, making them pay for 40% of the country's bills.  

http://defeatthedebt.com/our-ads/john-galt/

Always makes me wonder why people always talk about making the rich "pay their fair share"?  I figure if I go to dinner with 100 friends and I pay half the dinner bill, I have paid 4900% more than my fair share.  I would think anyone at the dinner table would think that I paid more than my fair share.  When you look at America's "dinner bill" we have the exact same situation.  But which one of you would use force me to pay the dinner bill?  Most likely, none of you would.  And then, which among you would then, after making me pay half of the dinner bill, which of you would have the audacity to say that I didn't pay my fair share and should pay more?  Probably even less.

Yet most Americans, including some of you reading this, don't think twice about sending armed goons after their neighbors to take their money from them and then tell those same victimized neighbors that they don't pay their fair share. 

I guess that's why people leave, as they have been doing in NJ, to areas of lower taxation.  We will get what we deserve.

Wednesday, January 6, 2010

Prices keep getting better

Today, my mother sent me an interesting email.  It was a chain email, one of many that my mother has the bad habit of sending to me but this one reminded me that occasionally you find a diamond in the rough. This email (read the email here) describes some details about how the world has changed since 1909, citing examples such as the average life expectancy of 47 years in those days, the small number of people who went to college, the presence of legalized narcotics and other interesting facts.  Although the observations were interesting, what caught my eye was the changes in prices. 

  • Sugar was $.04 a pound
  • Eggs were $.14 a dozen
 Clearly the author's intent was to point out how cheap those items were in 1909 but I saw the opposite.  From a real cost, those items were very expensive.  To the casual observer it might look like I'm off my rocker to make this claim but the math is there to support the claim. 

The cost of a product or service can be seen as a way of telling us how many hours we have to work, at our current rate of earnings, to afford an item.  When I say that an item is too expensive for me to buy, what that means is that it would take me too long to earn the extra money to buy the item or that I have the money for the item but, if I brought it, I wouldn't have money left to buy the other things I need so I would have to work even more.  So, in this sense, time does equal money.

For example, the average worker, the author states, made 22 cents per hour back in 1909 but a dozen of eggs cost him 14 cents.  This means that the average American had to work .61 hours to afford a dozen eggs.  (.14 / .22 = .63).  Compare that to today.  Today, the average American earns $20.67 per hour (based on the national wage average index from the Social Security Administration 2008 figures divided by a 2000 work year)  The average cost of a dozen of eggs is now $3.36 per dozen which means that the average American worker now has to work only .16 hours to get a dozen eggs (3.36 / 20.67 = .16) so eggs are cheaper; their prices having declined by 300%.  Using the same method, the price of gas went from .56 hours of work to .12 hours of work or a decrease in actual price of about 80%.  The illusion of products become more expensive is the result of inflation and the rapid increase in earnings resulting from the tremendous growth in productivity in America since 1909.

So prices are actually getting lower.

To highlight the point inflationdata.com has this chart that illustrates the real cost of gasoline over the past 90 years when the price is adjusted for inflation.  After adjusting, you can see that though the price of gasoline was about $.25 per gallon in 1918, in today's inflated dollars, that's the same as spending $3.57 per gallon in today's money.  Long story short....gas really hasn't gotten more expensive overall.


Monday, December 14, 2009

Once Again Obama the Populist Reveals his Ignorance of How Things Work!

FOXNews.com - White House Tells Bankers to Boost Lending After Bailout Successes

Posted using ShareThis

Yes, Mister Obama, bankers are "fatcats".  They get together in smokey rooms chewing on big cigars and rub their fat greedy hands together and laugh like this "Mwahahahahaha!" then rake piles of cash onto their bellies.

Wednesday, January 21, 2009

Why do people who sit behind a desk all day get paid more than people who do back-breaking physical labor?

I saw this thread on Yahoo Answers and it caught my eye. As a "heartless" Capitalist this seemed very interesting to me. Answers ranged from that most nebulous of the blue collar blame bucket "politics" (which is like blaming "the rich" which, of course, in America means almost everyone) to "life isn't fair" (another failed panacea of thinking). What no one seemed to touch on is the simplest answer, the market.

Salaries are no more than a cost of labor. Someone is paying a worker to provide a service to them. The employee is a seller and the employer is a buyer; its that simple. A buyer is always going to shop for the lowest price he can get for a product. We all do it, whether buying a tube of toothpaste or buying the skills of a carpenter to build a deck or an accountant to prepare tax returns. What an employee is selling is his ability to do a certain type of work but it is no different than selling any other product or service. So if you're the type who thinks all bosses are jerks, don't forget that when you go into 7-11 to buy a cup of coffee, since you're paying for all of the work of the people who went into getting that cup of coffee into your hands all the way back to the farmer in Costa Rica, you are also that jerk of a boss. When you go to the doctor, you become his boss because you pay him for the medical knowledge and care he's giving you.


Welcome to being the boss, jerk!

The point of all this is that employee/employer are really just different words for seller/buyer. The only difference is that, in general, employment relationships are more long term and often contractual. So welcome to the world of whoredom! You and I are whores selling ourselves! Hopefully you will think twice now before you criticize a prostitute. But I digress....

When you are out on the job market, you are looking for a customer to sell your skills and abilities to. The job market is a market like any other, subject to the same rules of supply and demand and you and your ability are the products. Two factors will determine how much you will be paid:
  1. How much does the customer want it? (market demand)
  2. How hard is it to get? (availability)

Remember...it ultimately come down to what the customer (the employer) wants, not what the seller (employee) thinks the product is worth. I can try selling my old Lucky Lefty Carmichael baseball card for $500 bucks but I am not likely to get it because no one really wants it but I can easily get $100,000 for a 1933 Goudey #53 Babe Ruth. People want the babe, but they don't care about Lucky Lefty. You may think you're worth $100,000 a year but if all you can do is hang drywall, you're unlikely to get it. How hard the work is has absolutely nothing to do with how much someone is paid for the work. This about it; wrestling a polar bear is hard, dangerous work and is far more difficult than negotiating a divorce but most of us would not pay someone $2000 to wrestle the bear. Most of us will pay $2000 for a good divorce attorney to protect us even though the polar bear wrestler is risking his life while the divorce attorney won't even break a sweat.

On to the second factor is the question of scarcity...how hard is it to get your product (an employee who can do what you do). The other reason the #53 card is so valuable is because there are so few on the market. Poeple want them badly and they are hard to get so customers are willing to pay alot for them. If all you can do is hang drywall for a living then you are easy to replace because hanging drywall is a low skill job and so anyone can do it. Basically, they are a dime a dozen.

Look at the examples below to see how this plays out:

Lucky Lefty Card - Low Availability - LowDemand - Low Price $.02

#53 Babe Ruth Card - Low Availability - Very High Demand - Very high price $110,000

Lawyer - Moderately Low Availability - High Demand - High Price $120,000 avg

Mechanic - Moderately High Demand - Moderately Low Demand - Moderately Low Price$35,789 med

Bank teller - High availability - Low Demand - Low Price $23,000 med

Fortune 500 CEO - Extremely Low Availability - Extremely High Demand - Extremely High Price $4,000,000 and up

The bottom line is that if you're skills are hard to replace and needed on the job market, then your salary will be high. If you don't have skills or your skill is easy to replace and no one wants what you do anyway, you're pretty much guaranteed to make very little money.

So get educated on hot skills and then learn those skills!