The “ism’s” of Economics Made Easy…..

two-cow-theoryI can’t make it any easier than this….with Bernie Sanders climbing in the polls.  The economic ignorance in this country is becoming mind numbing.  So I thought a simple analogy, not original to me, but one that needs to be repeated

 

What to do with Two Cows?

  • Socialism: You have two cows. Give one to your neighbor.
  • Communism: You have two cows. The government takes both and gives you some milk.
  • Fascism: You have two cows. The government takes both and shoots you.
  • Capitalism: You have two cows. Sell one and buy a bull.

You see all the “ism’s” that surround economics are simply how resources are to be distributed.  Without the chance for profit or growth, resources will always be scarce and difficult to come by, one simply has to realize that if you want to help the poor or disadvantaged you must allow more not less products come to market, with less not more barriers.

If you fail to understand those simple concepts you become Venezuela, the old Soviet Empire, etc… or simply the stupid dog that won’t stop chasing its tail.  

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