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Calvin & Hobbes explain the economic downturn

Even though I've seen this cartoon a gazillion times now, it's still as true as before.

Jan 03, 2009
Ryan Brown said...
I'm not sure what's funnier. The comic, or the scam comment posted immediately after the comic. It seems so appropriate :)
Jan 03, 2009
JEHeer6231 said...
Haha, the comic it's not completely right, but also not that far off. It's not that they demand high wages/pensions/salaries, as pretty much everyone demands these things. It's that they were offered it. When the Federal Reserve lowers the interest rate by pumping new money into bank reserves, the money is loaned out to businessmen who then higher workers/managers/CEOs with competitive wages and benefits. So in fact, it is a supply and demand curve. The more demand there is for employees whose supply does not drastically change, the higher their wages/benefits will become. (Not to forget mentioning Unions working with government to get what they want). This also happens with higher order goods. Look at wages and capital prices before any recession began, and you should see the inflationary boom that throws off the economic calculations of businessmen throughout the economy. Haven't you ever wondered why, in a market system where those who are bad at economic calculations get weeded out through bankruptcy, there is a cluster of errors in the economy at one point in time? Well, it's from the Federal Reserve's tinkering with the interest rate. Right now banks aren't loaning out the money that the Fed pumped into their vaults, because they don't know which companies are going to stay afloat or which person is going to loose their job. Once they're more confident in the economy, the $2 trillion (up to $20 trillion after you factor in the Fractional Reserve system) that the fed pumped in will be loaned out, and gas won't be $1.60 anymore. This is going to be the most inflationary boom we've ever had. I kind of feel bad for Obama. The economy is going to be crumbling before his eyes, and he won’t know why, because everyone seems to be a Keynesian today.
Jan 04, 2009
rowolf said...
I like its details, funny thing is..."Everybody wants to rule the world" popped up on my zune play list as i started reading
Jan 04, 2009
clementine said...
i like calvin&hobbes, thanks for sharing
Jan 06, 2009
Parag said...
Simple yet an eye-opener.That`s what i love about comics.
Feb 08, 2009
Paul said...
This is why I love Calvin and Hobbes -- it's always applicable!
May 11, 2009
lol it's funny because it's true.
 
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