Set-up, hah!

Everyone, excluding of course the minority of crazy, wants money. They work for it. The world revolves around all kinds of currency. Some even like money, they want it, seek it, plaster their walls with the smallest denomination banknotes- would not it be much more fun to make money? That's what entrepreneurs are up to. They not only seek money, they seek profits. Otherwise they'd lose money! Not in the sense of displacement, nor the money knowing its exact location, but ignoring where the location is. It would disappear completely, whilst existing on a computer screen with a big minus next to the figures. A profit is the return gained on an undertaken risk.

A risk of not making any sales, is the highest disincentive faced by enterprise. It's not the fact that consumers will look down upon businesses, whisper cruel explicitness of disrespect and walk-off leaving the set-up with a mini mental breakdown. People who operate at social norms and have mobility of status do not cross boundaries that would take them deeper into description, they just won't buy products that are of no use or interest to them. The business will suffer bankrupt, whither and die, although economics is a religion with strong evidence of reincarnation. The more unconventional a good or service is, the higher the risk of not making any sales. This is more like Business Studies- businesses- but economics is a pinch of everything.

So, how are profits made? Pressed firmly onto a blank banknote to be? In a way. Total revenue needs to be higher than total costs, simple. Here is a diagram from an exam question that I have conveniently found in a pile of papers not labelled 'GCSE Economics':

draw a break-even diagram for suicide

Costs are costly, they also have different types and apply to everyone, not just entrepreneurs who sweat their backs off, somehow. Fixed costs are the ones that do not change with output- the same as suicide produces death, where the fixed cost is life, non-variable mortgages slowly itch away when you see your so called 'smart' friends, who are just indeed lucky boast about their low variable interest payments and stay quiet of the soaring ones, where the fixed cost is the interest paid each month. Variable costs vary with output. For example, slow death may be the output of a low variable cost of jumping off the roof of your house and unintentionally breaking your spine, surviving and taking years to die as a vegetable, whereas a higher one would include buying strong drugs or domestic cleaning products. Total costs are all costs added up. Total revenue is all the money made by the subject of the diagram- in the example above, the pizza business. Loss is made up to the break-even- at which TC=TR -and profit  is everything after the break-even point.

Now, I said I will tell you how to make a profit, I lied. It will be in some other post. Not everything is as it seems, exactly the same as an actor depicting a KKK member walking down Barking and Dagenham from a performance after which he has forgotten his clothes in the dressing room.

macro after next micro, Paulius

First essay, not even finished...

...getting worse and worse with each paragraph. Maybe because it was written in half an hour at 7am in the morning after staying up all night without sleeping, but watching TV and lulzing.

Anyway, short and rubbish post, here's the link: Essay. It can also be found in the 'downloads' section.

I apologise for the appalling language used in this post, but my image is me, Paulius

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

So....Economics anyone?

If the universe is infinite, why does it have finite resources?

Basic Economic Problem- scarcity- is what would keep, I imagine, economists up at night. They won't be able to rest, consume, gain or manage anything, not least their social life and status. So how does one become an economist? Sacrifice your life for nothing? Not quite.

Scarcity means that there is not enough of a particular good or service (we all know what those are) to satisfy everyone's wants (the +1 that can be added to anything), i.e. wants are infinite whilst resources are finite. You may think to panic, start looting and piss-off to a country house with dozens of TVs and a a truck load of DVD players, but there's no need for such irrational human display, not least the idea that you'll sell the newest HD Blu-ray technology in your local crop fields. Maybe UFOs will zoom them up their plates and drop a heap of cash (potential capital) to show their gratitude. Long-shot, yes. They probably won't. They probably don't even know what a UFO is, so they cannot be UFOs, therefore no aliens will ever visit us as they do not exist. Huh?

Scarcity is actually the process that fuels everything you had, are and will experience- your computer screen, the wiring in your house, your parents marrying, that chocolate you bought last week, maybe you will buy a different one tomorrow (why?). The economy could not operate as it does if there were no scarcity! Imagine that you can have anything and everything you want at a thought. Firstly, you would most likely suffocate yourself if not doing this outside, and secondly, none of us would probably be here to ponder about this as if resources were infinite, evolution may not have taken place and the Earth would be flat; the universe would most certainly not exist the way it does now.

However, let's bring it down to reality. Let's say some genius whizzard invents a machine that can make anything out of air by rearranging the structure of atoms and building them up to a substance of your choice, whilst at the same time reading every single person's in the world minds and teleporting the want at an instant into their hands. What would happen? Essentially, a total monopoly would happen and markets would break down without second thought. There would be no incentive to do anything. No incentive to make profit- cash would be worthless, no incentive to reproduce- children would really really waste your life, no incentive to do anything. Of course, only if everyone agreed and did not destroy the machine.

Society would turn into a Greek pleasure island where all that people do is seek pleasure; and it could be gained instantaneously! Orgasms wouldn't even require you to fuck anyone.

So on the flip-side, scarcity- good? No. As everything in Economics, a balance needs to achieved. One end is bad, the other as well- just try holding five sticks in one hand by their tips without them tumbling over out of touch (control). It's worse in some places- noticeably, LEDCs- and softer in others, but it's still a problem, a healthy one though. As a problem, it needs solutions. Solutions come in Factors of Production.

I will follow up, stay tuned for more bullshit, Paulius