Jim Ulvog

What economic system has lifted humanity out of the dirt?

That would be capitalism.

I, for one, am thrilled to not live as my great-great-grandparents did. I’m not into subsistence agriculture, loosing half my children in their infancy, or facing a life expectancy of 30 years.

John Mackey has expanded that idea in his book, Conscious Capitalism.

Carpe Diem has a quote from the author in their post, Quotation of the day: Capitalism has lifted humanity out of the dirt and is greatest value creator in history of the world (more…)

By Jim Ulvog, ago

Role of the government in generating the financial crisis

“[…] many of the financial institutions that contributed to the problem were crony capitalist. Business leaders can have confidence in the working of free markets. It is government interference in markets that they should fear.”

John A. Allison

 That’s the opening quote in Pablo Paniagua’s review of Mr. Allison’s book, The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy’s Only Hope

Mr. Allison was a long-serving CEO of BB&T Bank. He saw the interference of government in the banking industry up close and personal.

Those icky, greedy bankers and icky greedy Wall Street financiers played a role in our current mess, but minor compared to the interference and misdirection and forced distortions arising from various federal agencies.

An overview of the mess we are in: (more…)

By Jim Ulvog, ago

Selective enforcement for harming eagles

One of the frightening dangers of crony capitalism is that a favored business or industry gets special treatment because they are favored.

The result can turn out to be that laws are enforced or not enforced based on whether the company has special contact with those who make decisions or is favored for other reasons.

So here’s the question:  Should the decision whether you get a pass or get hammered be based on whether you broke the rules or whether you do or don’t have special access?

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By Jim Ulvog, ago

Another farm illustration of improved productivity – 10

Previously discussed the mind-boggling improvement in productivity in egg production.

I’m a city boy and don’t understand farms. However, I have one last comparison.

When my dad was a boy, his dad and mom ran a 360 acre farm with help from my dad and seven siblings along with some occasional hired hands. Adjust that count anyway you wish for the lower number of hours the kids worked and their lower productivity, but that’s still 10 people to work a 360 acre farm.

I have a cousin whose husband and son run a farm today. (more…)

By Jim Ulvog, ago

Interference in the market pricing disrupts the supply and demand equation. What bad things will happen?

Disrupt the supply/demand equation and what are the fully expected results?

Distortions, shortages, rationing, waiting lines, black markets. Those are the logical consequences of price controls.

Could someone explain to me why shortages and rationing and black markets are morally superior to free enterprise?

Check this out:

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=7MY7E_VhKMM]

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By Jim Ulvog, ago

Prices know more than you do

How much information do prices contain? A huge amount.

Which is better for making a decision? Knowing the price of something or having perfect knowledge what something should cost?

If you think the latter, then you need either a crystal ball or tremendous amount of time to accurately research every single fact in the entire world-wide market.

If you think the former, then you can just look at the price of an item.

Professor Michael Munger illustrates this in a video, What Do Prices “Know” That You Don’t.

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=WPy-QKXofQs]

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By Jim Ulvog, ago