Archive for August, 2009

Lifeboats With Holes, Cash For Clunkers, Power Plants and Windmills - Huh?

August 1st, 2009

This is going to seem like a ramble, but it is not.  My limber mind has been expertly crafting this post for the better part of twelve hours during varying levels of awareness.  Our minds do some of their best thinking when well fed and then left to quietly and creatively churn while away from the hammering of our will.

Imagine a solitary lifeboat on an expansive sea.  We are all in this boat together, as they say.  The big fat guy up front says he is going to give everybody something to do.  His latest initiative seems a little bit crazy.  He told one group of people to poke little holes in the bottom of the lifeboat so that another group could come along and repair the holes.

Stated as this metaphor, this initiative is completely insane but in a large economic sense it is descriptive of “Cash for Clunkers.”  One of the real forms of wealth that a nation possesses is in what is called “capital equipment.”  In a grand economic sense, and particularly since we are now hurtling toward a collectivist existence, even privately owned equipment, in a sense, is a portion of the wealth of our nation.

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