Posted tagged ‘Creative Destruction’

Must Reads For The Week 12/17/16

December 17, 2016

OPEC MONOPOLY?

What OPEC Cut? Iraq Is Boosting It’s January Oil Exports By 7%, at zerohedge.com. OPEC’s “monopoly” never really existed. A cartel can only work if members follow the rules. Many of these countries can’t afford to cut production because oil is the resource they exchange for resources they do not or cannot produce. Cartels are only as good as there weakest links.

MCW Energy Group Limited Lowers Cost With New Oil Sands Extraction Technology, at mcwenergygroup.com. The ability to find new sources of oil, as well as new technologies to extract this oil, are also reason OPEC has lost whatever illusory monopoly power they and we thought they might have had. As long as competitors are allowed to enter a market, their can be no monopoly. Monopolies can only exist because of Government sanctions. If a supposed cartel tries to control price by constricting supply, the price will go up which in turn makes it profitable for competitors to enter the market at the higher price. The increased supply will bring the price down. Market prices are a double-edged sword for cartels who think they have a monopoly. They want a higher price for their resource, but the higher price makes it profitable for marginal suppliers to enter the market. This eventually brings the price down. Free markets work

Fortune 500 Firms 1995vs. 2016: Only 12% Remain Thanks To The Creative Destruction That Fuels Economic Prosperity, by Mark Perry, at carpediemblog. This has nothing to do with oil, but it has everything to do with monopoly. The market isn’t concerned with propping up the status quo that exists at the moment. Government is concerned with that. The market is what results when individuals are free to decide what they will produce, consume, exchange and save, according to each individuals subjective valuations, in a world of scarce resources. The market is about the future, Government intervention is about propping up the past.

ELECTION SHENANIGANS

Mass Detroit Voter Fraud? 37% Of Precincts Counted More Ballots Than Voters, at zerohedge.com. + More Detroit Voting “Irregularities”. 95 Poll Books Missing For Days, 5 Still Nowhere to Be Found, at zerohedge.com. This is what real election tampering looks like.

Bullet In The Mouth” – Trump Electors Flooded With Death Threats, at zerohedge.com. Another example of tampering with an election.

NY Times Hires Reporter Who Sent Stories To Clinton Campaign For Approval, at tammybruce.com. This Clinton hack reporter’s misdeeds were a resume enhancement. Who’s worried about fake news from the NYT now?

So It Was Not Hacking, Apologies Now, Or Get Out, at theburningplatform.com. NSA Whistle Blower Destroys Obama’s Russian Hacking Narrative, at zerohedge.com. Julian Assange Crushes Obama Narrative. “Our Source Is Not The Russian Government, at zerohedge.com. Who has more credibility, Obama or …. pick someone.

Obama Vows Retaliation Against “Russian Hacking”, at zerohedge.com. I’m sure Putin is quacking in his boots because of this threat. Who would take this threat seriously? Besides the fact that Obama is a wimp, he will be out of office in 4 and a half weeks.

INTERFERING WITH THE MARKET

HEROIC Uber To California Regulators: Drop Dead, at economicpolicyjournal.com. I love it when the status quo is basically told to go  #+(%  yourself.

Portland Asks Businesses To Move Elsewhere, by Per Bylund, at mises.org. Excerpt from the article: “Businesses in Portland, or, who pay “Too High” of Salaries to their CEOs will be hit by a 10% surcharge on their taxes.”  Two things will happen. Either these businesses will move, or they will find creative ways to compensate their CEOs without calling it a salary.

Single Mother Facing Prison For Selling Homemade Mexican Dish To Undercover Cop, by Robby Soave, at reason.com. These undercover cops are risking their lives. They are real heroes! Raise your hand if you think there is too much Government regulation.

A New Victim In The War On Small-Biz Bakeries, by Michelle Malkin, at townhall.com. A bakery employee stopped a shop lifter from stealing two bottles of wine. Since the perp was black, local college students organized a protest against the bakery for racial profiling.

EPA Rushing Through Regulations After Trumps Election, by John Sicliano, at washingtonexaminer.com. Unelected bureaucrats will push their ideology through regulations. Government agencies in general and the EPA in particular have to be reigned in.

Has “Market Failure” Caused High Health-Care Prices? by Dale Steinreich, at mises.org. The high cost of healthcare is a result of decades of government intervention into the healthcare market. The final straw was Obamacare. Healthcare and health insurance are economic goods produced by individuals, not government bureaucrats.

This Is What Hyperinflation Looks Like, at economicpolicyjournal.com. This is what an economy that is centrally planned by government bureaucrats eventually looks like.

“Save Our Jobs” From “Creative Destruction”

December 17, 2015

Does free market capitalism destroy jobs? Yes! The free market replaces jobs that it previously created with more productive ways of doing the same thing.  Joseph Schumpeter coined the phrase “creative destruction” to describe the dynamism and innovation that is unleashed under free market capitalism. Put another way the free market creatively replaces unproductive jobs with more productive jobs.

Think milkmen, blacksmiths, paperboys, along with cassette tape, vinyl record, and typewriter manufacturers. News papers and book stores. Think taxi cartel vs. Uber.

This 1 minute and 38 second parody, gives us an understanding of “creative destruction” that an economist could only dream of achieving in thousands of written words.

COALITION OF OBSOLETE INDUSTRIES

Excerpt from the video, “If we don’t stop progress how will anyone ever have jobs?

 

Related Article“CAR WARS” Return Of The Jitneys, at austrianaddict.com.

Related ArticleGovernment Intervention Stifles Real Job Creation, at austrianaddict.com.

Must Reads For The Week 10/17/15

October 16, 2015

Kia is “pushing back on the frontier of ignorance”. Great Job Kia.

Dad fixes sons participation trophy.

Mom has clear vision of reality.

The Disgusting Corruption Of America’s Political Class, by Dan Mitchell, at freedomandprosperity.org. It may be disgusting but is perfectly reasonable when you consider the incentives. As Government increases its power, people will pay politicians to protect themselves from government regulation, or bribe politicians so they will keep competition our.

Fed’s Fisher Says 2015 U.S. Rate Rise ‘An Expectation Not A Commitment, at economicpolicyjournal.com. The Fed has been talking tough about an interest rate hike for the past year but have failed to pull the trigger. This shows how weak they think the U.S. economy is. The interest rate hike always seems to disappear like a mirage in a desert as you walk toward it.

Labor Force Shrinks, The Fed Has No Strategy, by Ryan McMaken, at mises.org. There are 94 million people of working age not in the labor force. This is 15 million fewer people working than were working in 2008. How can an economy be growing or healthy if fewer people are producing? The Feds only answer for a bad economy is to lower interest rates. Where do they go from zero percent? Negative interest rates?

One True Measure Of Stagnation: Not In The Labor Force, by Charles Hugh Smith, at oftwominds.com. This is a slightly different look at labor force participation in the US. Here is an excerpt from the article. “Heroic efforts are being made to cloak the stagnation of the U.S. economy. One of these is to shift the unemployed work force from the negative-sounding ‘jobless’ category to the benign-sounding ‘Not in the Labor Force’ category.”

According To Bernanke, This Was The “Biggest Impact Of QE“, at zerohedge.com. Bernanke said the biggest impact of QE was job creation. I think he needs to look at the work force participation rate chart that is on the Federal Reserve’s own website.

We All Know What Unions Don’t: Their History, by Amy Otto, at thefederalist.com. The Uber economy will make unions more extinct than the dinosaur that they already are.

Would-Be Killers Target Gun-Free Zones, by John Lott, at philly.com. HT libertypenblog.blogspot.com. Gun free zones are dangerous. From the article. “Since at least 1950, all but two public mass shootings in America have taken place where general citizens are banned from carrying guns.

Fortune 500 Firms In 1955 vs. 2015; Only 12% Remain Thanks To The Creative Destruction That Fuels Economic Prosperity, by Mark J. Perry, at carpediemblog. The consumer is the ultimate judge on whether a company remains survives.

 

 

 

 

Must Reads For The Week 7/27/13

July 27, 2013
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Liberty Slipping: 10 Things You Could Do In 1975 That You Can’t Do Now, at economicpolicyjournal.com. You can probably think of ten more right off the top of your head.

Disruptions: Ride-Sharing Upstarts Challenge Industry, by Nick Bilton, at nytimes.com. I found this article through aei-ideas.org. Creative destruction of the market in spite of government trying to prop up the status quo. This is the spirit of our founders.

The Decline Of The Civil -Rights Establishment, by Shelby Steele, at online.wsj.com. Shelby Steele analyzes todays civil rights establishment as compared to the original leaders of the movement.

The Nightmare Ahead: 19 Cities Have More Public Workers Per Resident Than Detroit, at economicpolicyjournal.com. You’re traveling  down the road to serfdom when you consistently consume more than you produce.

Your Place In The Data Base, by Brae Jaeger, at americanthinker.com. The ability of benevolent Government to collect your data is staggering. Oh by the way, your fourth and fifth amendment rights are being flushed down the toilet.

Feds Seize Gold Coins Worth $80 Million From Pennsylvania Family, at economicpolicyjournal.com. Lets flip for it, heads I win tails you lose.

Police Are Ordered To Return $1 Mill. in $1 Dollar Bills Confiscated From Stripper, at economicpolicyjournal.com. Government tramples on fourth amendment right against illegal searches and seizures.

U.S. Oil Output Increased By 2M Barrels Per Day In Just Two Years, Reversing 20 Year Decline, by Mark J. Perry, at aei-ideas.org. The Government will try to shut this down through environmental regulation (EPA).

Texas Eagle Ford Shale Sets New Oil Output Record In May, by Mark J. Perry, at aei-ideas.org. Who needs the Key Stone Pipeline to bring oil from Canada to Texas refineries? The market finds a way to supply oil even when Government tries to restrict supply.

Welcome To Jiangsu, China’s Flashing Red Canary-In-The-Coal Mine, at zerohedge.com. Central bank induced credit expansion creates bubble activities, which in turn produce a misallocation of capital and resources, which will eventually be liquidated sooner, when the credit expansion stops, or later, when there is a collapse. We are doing the same thing in the stock, bond, and housing sectors.