Wednesday, October 28, 2009
Home Ownership and Unemployment – by Thomas Sowell
I have a theory that we make life too complicated; i.e., we get so involved in details (nuances) that we completely lose sight of basic reasoning.
I think this article explains my point very well.
Of course, when politics becomes involved, everything is excaberated...
I think this article explains my point very well.
Of course, when politics becomes involved, everything is excaberated...
Thomas Sowell explains at FrontPageMag.com:
"Nikolai Shmelev and Vladimir Popov said: “Everything is interconnected in the world of prices, so that the smallest change in one element is passed along the chain to millions of others.”
What does that mean? It means that a huge increase in the demand for ice cream can mean higher prices for catchers’ mitts, among other things.
When more cows are needed to produce more milk to make ice cream, then fewer cows will be slaughtered and that means less cowhide available to make baseball gloves. Supply and demand mean that catchers’ mitts are going to cost more.
While this may be easy enough to understand, its implications are completely lost on many people in politics and in the media."
