Category: Politics

I was sent this today as an example of how the modern economy works. Sorry duno what the original source was.

Were the following actions a demonstration of the Accelerator or the Multiplier in economics?


It’s a slow day in a little English town. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich tourist from down south is driving through town. He stops at the motel and lays a £50 note on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the note and runs next door to pay his debt to the butcher.

The butcher takes the £50 and runs down the street to repay his debt to the pig farmer.

The pig farmer takes the £50 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer’s Co-op takes the £50 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.

The prozza rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the £50 back on the counter so the rich traveller will not suspect anything.

At that moment the traveller comes down the stairs, picks up the £50 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything.

However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how the British Government was conducting business.

This is brilliant – A line from PR put out by the group wanting to abolish MMP  (proportional voting system in use in NZ) can be read in a way that says completely the opposite thing.

“Put MMP to the Vote is recommending New Zealand voters adopt the supplementary member system, which will halve the number of list MPs and limit the power of minor parties to frustrate the will of the people.”

i read it first time as saying: limiting the power of minor parties will frustrate the will of the people.which is of course completely true but I don’t think that’ was the message they were trying to convey.

Hire a better PR company “Put MMP to the vote” !!

The Nanny State & Pigovian Taxes

Its been a long time since the Politically Incorrect radio show was heard but it turns out that a lot of the thoughts aired there are coming true.

Who would have thought that a National government with their alleged desire for freedom and personal responsability would have  sprung a higher tax on smokers with the promise of more to come? This government is making a clear statement to the nation that smoking should be a privilege reserved for the wealthy only. Still I spose the higher the retail price for cigarettes the more incentive the black market will have to start to provide an alternative supply. Who knows one day cannabis might be a cheap alternative to tobacco.

There are hints that alcohol will be the next thing targeted and then maybe fast food. What about a blanket tax on everyone who doesn’t vote National?

Historically the National party has been the party of low tax but I think that this government will probably be remembered as the government that raised taxes. (Remember GST is also set to rise sometime this year)

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