Friday 24 September 2010

FOPs, CELLs and OC

FOPs (Factors of Production) are CELLs (Capital, Enterprise, Land and Labour). How and why fops suddenly are cells at the same time as being fops is beyond comprehension, but nevertheless, they are and no argument will ever change that. Ever. Moving swiftly on to sustain this paragraph making sense of the above title, let's discuss fops (or cells) individually, in an order that also makes the most sense.

Flat land can be bad too
Land is first of all an asset. Any natural resource- fields, rivers, mountains, mineral deposits, clouds- claimed by ownership and is not traded by truckloads, it is exchanged via paperwork, increasingly just keyboard and mouse work in present times. It is the starting pit of most things- houses, oil wells, the "plant tree" on your bucket list,car parks, sheds, rabbit holes- demanded by homeless people and supplied by the creator. The creator now wants to make a profit. Quality is the most significant reasoning behind the price of land. Good, flat land fetches far higher points on a diagram than derelict, hilly bad land- society's instinctively prejudiced against hills, people get lost in them. Exactly the same applies to rivers and oceans, but not here.


Labour, essentially, is a human. It does work and gets paid for input or output, its wages having been determined by the quality of its skills and expertise as well as quantity of performance. It produces a good or service. This is written down (or typed up) in a table with many headings due to fear of health and safety departments which employ lawyers that carry large, expandable suitcases. Humans are living capital.

Cheese instead
Capital, by textbooks, is defined as any man-made aid to production, but not cheese. However, cheese is man-made and is an aid to production as it provides carbohydrates which are the source of energy and will prevent a banker falling asleep by stimulating the brain and consciousness. I think. Capital is not usually described as a consumer non-durable. Although, economics does not have to be textbooky, nothing does, textbooks are just words. So, cheese... not a prime example of capital. Here's diction you're likely more familiar with- factories, machinery, railways. All in all, capital is investment. Like buying a Coke to clench your thirst for the moment of rash decision when it's "ONLY £1!", resulting in a highly productive hour without distractions such as "I need a drink". Performing such events constantly will, however, deteriorate health. Ask a tramp.


Following the chronology of 'get land, labour agriculture, upgrade to machinery, fire workers, pay more tax for benefits and retraining, swear' we reach enterprise.


Enterprise is managing the other factors to make a profit. That's it.

Now, what's OC I don't hear you ask? Well... just as I lied by saying that fops are solutions to scarcity, I have lied in the title by adding OC- it's in the upcoming post.

I will follow up with how to manufacture profits, stay tuned for extra indoctrination, Paulius

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