Pascal, my friend
fusses at me that he can’t get bloggers to catch fire with the fervor he has for the issues he husbands.
I understand his frustration, but I can’t fix it, because I understand why nobody gets upset. We’re used to it. I’m not capable of being surprised by the machinations of the left, or the treachery of the right, or the stupidity of the average person. What I haven’t seen with my own eyes, I can easily imagine, and for everything I have seen I can imagine worse and expect to eventually see it.
Nobody wants to read a blog that dwells on the same shit over and over again. And nobody wants to listen to anyone bitch- we have a nature that wants to fix things, and someone who presents problems without solutions is only a reminder of everyone’s impotence.
Yesterday I tried to educate professor Hale a bit, but he’s decided that he’s not interested, and this gives me the same sort of frustration that I’m sure Pascal feels, because it is obvious that so damned few people understand these few simple facts:
Since the beginning of time, there are people that want things, and people that have things. The people that want things have always made bargans with the people that have things. That bargaining is called commerce, and from the beginning of time, people have understood, that you profit by being the best overall provider of that product.
All commerce is barter, when it comes right down to it. Cash is simply a marker that is assigned an arbitrary value. it used to be that gold was used as currency because gold had an innate value, and it was portable. Since we are on the paper standard these days, the marker is just that, a promise to pay however many pigs or loaves of bread or PS3 consoles.
Commerce takes place everywhere, inside and outside of any form of government, and will certainly outlast government of all kinds.
In normal commerce, the producer with the best price, best product, best service is the one who will be favored above all others. That’s how it works- thats how it always works. The car that people like sells well. The computer that people are comfortable with sells well. The bank that makes customers feel secure does the best business. There is one constant among successful businesses: The customer is king.
Where business is concerned- and everyone in retail knows this- the buck stops in the customer’s pocket. If you want the buck to be in your pocket, you have to convince the customer to let go of it. And you do that by providing better. Better service, better product, better anything and everything. Because for the duration of the transaction, the customer is the employer and you are the employee. If you want to repeat that profitable encounter, you have to give your temporary employer the perception of value.
In industry the successful people are the people who understand this, and strive to give their customers the perception of value, The actual value is useful, but can be secondary to the perceived value- our competitors provide similar products and services but our company is perceived as being more professional, more responsive, and more capable. So our customers keep coming back.
A powerful lot of people work for large enough corporations that they cannot see beyond the room they work in or the union they belong to. “That guy is my boss” they’ll say, and they’re wrong. That guy may be their immediate superior, but the Boss is, at the end of the day, the person who buys that truck, or donut, or toolbox, or sewing machine. Henry Ford knew this instinctively, and became wealthy understanding the needs and desires of his customers. Even then, though, he had a hard time communicating this innate understanding to his employees.
Now we have separated the payer from the payee by layers so thick sanity cannot penetrate. And since most people never see the faceless person who consumes their product or service they dont’ give a shit about them.
Oddly enough, G-d forbid their Comcast doesn’t work they way they want, because they will bitch until it does. Or their car has issues. Or their Amazon package is a day later than it was promised. because ME ME ME ME ME!!!.
A stunning and astounding number of people have a complete unrelenting disconnect between what they do and where they paycheck comes from. The geek at the Best Buy has a better understanding of the nature of commerce than the highest paid Government employee. This disconnect is the core of the issue with our government and our society; Government is (and is even more so with Obamacare) Commerce at gunpoint. Or more accurately, as I said at Hale’s place:
I pay Professor Hale to make me a chair. He is contractually obligated to make me a chair.
This is how commerce works. He is the employee, I am the boss.
Professor Hale holds a gun to my head and takes my money, he then uses that money to do some things he says I want, and some things he says other people want, then blows the lions share of the money on hookers and blow.
This is how Government works.
Everyone will nod their head and agree. And that is the problem! It has become the norm that we simply accept this, and it is completely unacceptible, and as Hale has demonstrated, some people will even argue about the veracity of the simple fact that the government takes our money and is completely unaccountable for how it is spent.
The government provides nothing, and in fact consumes. the infrastructure, organization, defense, and regulation it “Provides” is in every way and in every case subpar, less effective than that provided by private contractors, and far, far more expensive. Doesn’t make any difference if it is a bridge, or (coming to an asshole near you, soon, ) a colonoscopy, someone will do it better, faster, cheaper than the government, but we are obliged to pay the government the price it sets for the things it says we need.
Not until this ignorance is eradicated from our entire race will anything ever change, because, since people are “Used to it” and since “We won’t ever change it” we no longer even think about it.
So in this respect I’m on the same platform as Pascal, watching the trains roll on past the last stop before perdition, because nobody wants to have their own ignorance pointed out to them. Those lies they’ve been taught to believe are much more comfortable.
38 comments Og | Uncategorized

We can go to the left’s Utopian socialist dream and still commerce will go on. In Mao’s China there was a thriving black market. Chin had an extra chicken — Chang had some grain, a trade is made. Same in the USSR, Oleg traded some beets to Vladimir for some pork.
The dollar is only good for barter as long as the receiver believes he can later trade it for a different good.
I find it amazing how many people lack a basic understanding of economics.
Two other points about commerce, which you hint at but I think they’re important enough to be made explicit:
1) Commerce is absolutely voluntary on both parts. No one is coerced into the transaction, and if either party decides they’d rather not the transaction doesn’t happen.
2) BOTH parties come out ahead in the transaction. If I agree to fix someone’s computer (which he can’t do), and he in return fixes my car (which I can’t) we’re BOTH better off after the transaction, fixed computers and cars being more valuable than broken ones.
Well done that man!
“Yesterday I tried to educate professor Hale a bit, but he’s decided that he’s not interested, and this gives me the same sort of frustration that I’m sure Pascal feels, because it is obvious that so damned few people understand these few simple facts:”
I feel your pain. Some people just have rocks in their heads. I agree with your philosophy, just not your desire to redefine common words.
The owner of a business is the one who invests in it. He has a right to run that business stupidly and pay the price for his stupidity. HE is the boss. He bears responsibility. The customer bears no responsibility. The customer can walk away from any one business and choose to favor another. (except for health care that is now just too important to leave to individuals). Obviously, a good boss will want to use his resources effectively and he will want to please his customers. But his only point in pleasing customers is to maximize the return on his investment. So, pleasing the cat lady who wants to argue with him about how the paper roll in the ladies room is mounted backwards has less value to him than upselling his favorite customer into a better product.
Way to understand nothing! I hope you never have to work in the real world, you’d starve to death.
Been in the real world. Didn’t starve. But thanks for your warm wishes.
Professor Hale,
Do not let your education get in the way of your understanding.
When a concern ( aka business ) gets too successful to the point where one person cannot deal with all the people who want his widget he hires one person to help. the hire is trading TIME for MONEY so he can BUY some widgets.
It does not matter how large any corporation is, it started like this.
There are people in this world that have large piles of money created by inheritance ( which is luck ) or hard work and they will sometimes buy a going concern trying to make a larger pile of money. That does not change the beginning, which is trading a widget for a wally banger. It really does not matter that we use money instead of barter.
Og is spot on for his analysis.
Your point about a stupidly run business does not change the basic facts.
I suppose if you have spent your life being lied to about the meaning of the word “Employer’ and “Employee” it would seem, on coming upon the actual meanings, as if that person were trying to redefine them. Don’t trust me, though. Look it up for yourself. My definition of employer and employee is the only correct one, and always will be, no matter what you’ve been taught to believe.
Orly? What part of the real world did you live in? because in the real world, everyone understands what you refuse to accept.
Now let’s dissect this ignorance.
“The owner of a business is the one who invests in it”
What does he invest, hale? Faerie dust? if he invests money he has to have gotten it from somewhere. And that somewhere 9Even if he inherited it) was ALWAYS from someone who gave it to someone else for a product or service. End of question, discussion over. Unless you can prove that wrong, which you demonstrably cannot. Businesses in which the owner or ANYONE IN THE CHAIN OF COMMAND make a habit of forgetting that the customer is the most important prime mover of the business and the employer of all the businesses employees fail. or they go to work for the FedGov.
“The customer can walk away from any one business and choose to favor another. (except for health care that is now just too important to leave to individuals).”
Wow. Just wow.
Health care is too important to leave to individuals (meaning the consumers who are paying for the health care), so let’s leave it up to …. who exactly?
Reminds me of an old job where I did a lot of work with the Industrial Engineering department, I programmed productivity systems for other departments to use. Basically employees tracked how much time everything they did took, entered it into the system I developed, and reports were spat out. One manager said “So we’re going to be more productive by doing work (meaning the tracking) we’re not doing now.”
yeah, D, I really do wonder about some peoples plans for “Fixing” shit.
Businesses do not exist to provide jobs. Business exist to make money. Employees are a necessary evil. An owner hires an employee only because that employee has a skill the owner does not (Yes, it may only be “time”).
All economic activity is traced to a single barter or trade, as OG suggests.
The government only takes from one citizen and gives to another.
“The government only takes from one citizen and gives to another. ”
Skimming a healthy chunk off for themselves in the process.
About your preface: I get some of those same emails from Pascal. Sometimes, they spark an essay. More often, though, they engender only regrets. I’m too tired. I really should be working on a novel. The cat boxes need to be scooped and the cats can get downright shirty about that. There’s only 32 hours in a day, and I need at least six hours’ sleep.
Eh? 24? Oh, schlitz. I’m in the hole by two hours. Or worse. Maths mind not working right now.
Yeah, that doesn’t alter the urgency of the message, the lesson needing to be conveyed, the intransigence of the students… And it may not even be an excuse. But still, it’s what I have.
M
right wicha mark.
All commerce is barter, when it comes right down to it. Cash is simply a marker that is assigned an arbitrary value. it used to be that gold was used as currency because gold had an innate value, and it was portable. Since we are on the paper standard these days, the marker is just that, a promise to pay however many pigs or loaves of bread or PS3 consoles.
I’d add that (per Rothbard, and I’m not sure anyone actually disagrees with this one) while any commodity currency starts becoming money by already having use-value, once it becomes money that use-value is definitionally secondary to its new primary value as a medium of generic exchange. This was true of gold, of silver, of cowrie shells.
(Portability helps, of course, as does the added divisibility and durability of metals over said cowrie shells. You can divide a gold coin as finely as your tools and balance allow; you can’t divide a cowrie shell at all.)
The only difference between token money on the gold standard and pure fiat money is that the issuer of the latter can play silly buggers with the money supply. If they don’t and people have good reason to think they won’t start doing so, it doesn’t make a lot of difference. If they do or people think they will, it all goes to hell like Zimbabwe or Weimar Germany.
Meanwhile the DOJ has told Zero that he can coin a platinum coin, call it $1Trillion, and deposit that in the treasury rather than raise the debt ceiling. Warm fuzzies all around (in DC at least).
Hale, please tell us that you forgot the sarcasm tag after your parenthetical. “(except for health care that is now just too important to leave to individuals [/S]).”
Mark, that comment was sarcasm WRT the currently mandated and Supreme Court Approved Affordable Care Act(TM).
I’m in enough trouble for the things I actually defend without having to carry a defense of my sarcasm too.
But normally, all my arguments with Og devolve into the definitions of common words. I am not defending a business model, common practice or philosophy. I am just telling you the definition of the word “boss”. And no matter how many motivational posters you get telling you the customer is your boss, that still doesn’t make it so. There is already a word for customer, it is “customer”. The guy who hires you and tells you what to do in exchange for your hire is the boss. One of us or both of us is making this a lot harder than it needs to be.
$trillion coin? Awesome idea. Make 5 of them every year and then no one will ever have to pay taxes again and everything will be free (/sarcasm)
Actually Mark Alger, I have seen little cause to send you emails in a long while. That’s because you are a frequent self-starter at tweaking our übermenschen. In fact you do quite well in setting an example.
If I have not applauded you recently, consider this my small way to make up for that oversight.
There was one email, way back in Feb 2008, that I sent you and other impressive bloggers. You may remember this post (warning about McCain).
There is hardly a man today who would not agree with my warning. Yet it is a fact that one of our leading lights, a man the Right finds inspirational, actually sent me the following terse reply. “I read your post. Quite frankly I think you have lost your mind.”
If he thought that post was the first indication that I’ve lost my mind, he’s behind the curve.
However this is my point.
His choice of topic to use to arrive at that assessment has left me wary of everything he has done since.
Which leads me to what I keep saying to you younger men: we need new and uncompromisable leadership. why not you or those around you that you trust. Be quite wary of those who have a big cache of nuts they want to protect.
Nurture and rally around and protect the new blood.
“And no matter how many motivational posters you get telling you the customer is your boss, that still doesn’t make it so”
No. Facts make it so.
“The guy who hires you and tells you what to do in exchange for your hire is the boss”
Oh, so you finally agree. that guy who hires you and tells you what to do in exchange for your hire is the customer. You are being deliberately obtuse, because it suits you. I am just recounting facts you happen to be uncomfortable with. it doesn’t make them less factual.
Speaking of $trillion dollar coins. I always thought it merely coincidental that DC stands both for District of Columbia and Death Cult.
I will agree that in a small business the customer can also be a type of limited “boss”. And also a boss is certainly a type of customer of the labor he is hiring. Thus, the manager at a Walmart is a customer of the cashier’s services. The guy who walks in looking for a quart of milk (unless is is also the manager) is only a customer and is no one’s boss.
But if Og has a cow and sells milk one quart at a time, every person he sells to is his customer and only his wife is his boss. The Cow is neither customer, nor employee, nor boss. It is a cow.
I am stunned at the absolute obtuseness of that comment. there has not been anything as ignorant written here in ages.
Sure there has. The last time we argued about something equally as pointless.
let me once again use small words to explain this to you. if I have a cow, or a sheep, or a goat, or a kangaroo, or a platypus, (it doesn’t matter which because those animals are neither employees or employers but property) and if I have a wife or ten wives or I am married to the Empire State building (it doesn’t matter because personal relationships have nothing to do in this case) if I milk my cow and sell that milk to a customer, that customer IS MY EMPLOYER. HE HAS PAID ME MONEY TO PROVIDE HIM WITH SOMETHING HE WANTS. I HAVE DONE SO. I AM HIS EMPLOYEE. I can’t make it any clearer than that. if you cannot understand that there is no hope.
” The last time we argued about something equally as pointless. ”
And you were wrong then as well.
As I have repeatedly demonstrated. And it is only pointless if you think the ‘You’re not the boss of me” lie is fine. It is merely criminal, and evil.
You know, sometime when you hold a ludicrous belief so strongly that everyone disagrees with you, it is because you are a visionary in the succession of other great visionaries, like Edison or the Montgolfier brothers. but most of the time it’s because you’re stupid, or batshit crazy.
You’re not the boss of me.
I have no idea what you do these days so I don’t have a clue. And that is also a part of the problem.
I think you already called me an armed robber, so I am not an employee. Haha.
Oh, you work for the IRS?
Don’t we all?
Nope. I work for me. The IRS is just the thief whose hand is in my pocket every day of my life.
I was a business owner for about twelve years. People would often say that it must be nice to be my own boss. If that were so. I realized very quickly that the customer was, in every meaning of the term, the boss.
I sold a commodity to them for exchange. If I did not provide that commodity in a manner they liked then they stopped buying it. Or they fired me….
Just like I purchased a commodity from my employee’s, and if they did not provide that commodity in a manner I liked I fired them. Or you could say I stopped buying from them – They lost a customer.
Employer, employee. Customer, Seller. The words are titles, the meanings are the same.
I have worked in “Health Care” for 29 years. “Health care is too important to leave to the/a individual.” So you must be the men and women that come in and ignore the advice of your doctor. You must be the same people who sue doctors and nurses and hospitals for your ill health. You “Idiots”. Health care is all about the individual. You want smoke, drink immoderately and do drugs? I’m all right with your choice. Don’t come to me and say I have to save your life, your health or your liver. You made the choice.
You want to take the medication some quack prescribed so you would leave him alone, then go ahead. But remember you insisted there was some medication/treatment/feel good words that would heal your problems. YOUR PROBLEMS. Well, I intend to be on your death panels. I want to dictate what my tax dollars will pay for your care. OG I may keep alive. He is at least a little entertaining and usually spells accurately. Gary
Spot on.
I keep remembering a line from the rancher in McClintock!, I believe it was
Everybody works for somebody. You work for me, and I work for everybody who walks into a butcher shop to buy a steak.”
Exactly. There are multiple layers of commerce. And everyone involved is either an employer or an employee. Yopu employ JC Penneys to get those goods and put them all in one place so you can buy them- they provide a service, and the consumer- via penny’s markup- pays Penneys for that service. And pennys pays the trucker for the transport. And so on, on down the line. But without the manufacturer making the underwire bra, and the woman wearing it, there isn’t any use for any of the other services.