School Me in Economics

Let’s say I have business. And let’s say I know with the economic downturn, I can tell I’m going to lose money. Let’s say, for easy math (and I like easy math!), I’m planning on losing $100,000 this year. Now let’s say business isn’t as bad as I thought. It’s still bad, and I’m still losing money, but let’s say now I’m only going to lose $25,000. Here’s the question: Who in their right mind thinks “Woo hoo! I’m not losing as much as I thought! I think I’ll go out and spend $75,000 since I’d already planned on losing $100,000 anyway!”

Does that not sound ridiculous? Wouldn’t most of us say “I’m glad I’m not losing as much, but I still need to buckle down and at least try to make a profit. Now is not the time to be spending money–spending money I actually don’t have!”

Yet, the former seems to be the attitude of some of our legislators. The TARP bailout isn’t LOSING as much as they thought. So what do we do with the “leftover” money? (As if you can have leftover negative somethings!) Spend it! Hey, we’d already planned on it losing, so let’s spend it so we can meet our budgeted loss!

I’m not an economist. I was an English major; I don’t even particularly care for numbers at all. Yet I’m involved with budgets for my church, my household, and for two other organizations on whose boards I serve. What would they say if I proposed spending money in a budget deficit year, using the math theory “We’re not losing as much as we planned, so let’s spend!” They’d clonk me! It doesn’t make sense.  Or does it, somehow? If so, please school me how.

Friday Fill In #152

1. Wait! Wait, don’t forget to take your house key; we haven’t made a spare yet.
2. Turkey consumption followed at once by a nap were my plans for yesterday.
3. The trouble is usually followed by the punishment.
4. The nearest drum shop is many miles away.
5. With a faint pop he sent the .177 pellet gun round into the raccoon that was raiding the trash.
6. I’m not a big fan of these rock bands whose lyrics are all shadowy and ominous.
7. And as for the weekend, tonight I’m looking forward to playing a gig in Bah Hahbah, tomorrow my plans include picking up the Christmas decorations at our old house, and Sunday, I want to kick it out and break it down (whatever that means)!

Musicians Friend and Chuck Taylors

I like wearing Chucks. They offer the right blend of support and flexibility. They come in great colors. And, when found on sale, can be somewhat affordable. I found a pair, used, on Musician’s Friend last week. They were in my size, and black. They were rated a “1” on the Musician’s Friend “Used Gear” scale: like new, without original packaging. I could get for $26, or about $10 off new. Being cheap, I ordered them. They showed up today. There was a big, black scuff mark on the toe. I figured “I’ll just scrub that off.” Nothin’ doin’! It appears someone else (the first customer, maybe?) scrubbed it enough to wear through the first layer of rubber. There’s a divot right through the first layer. It was unsightly enough that this cheapskate wanted to send them back. I called. I explained. The lady on the other end said “Don’t bother to send them back. If they look like that, we shouldn’t have resold them. You can just keep them. You’re all set.” Well, I certainly appreciate that! And, this makes up for that drum bag fiasco I had with them a few years back. They’re back on even footing (so to speak!) with me now.

Friday Fill In #151

Haven’t posted in some time. Facebook is the new blog. It’s much easier to log in and post two sentences than to come here and have to think more. Anyway, here’s something a little fresh at least.

1. We need to finish moving stuff out of the old house.
2. Matthew used the word “seriously,” and it made me smile.
3. If you want some Fillet Mignon, don’t stop by my house tonight. (There isn’t enough to go around!)
4. We’re eating Fillet Mignon because got a great deal on whole beef tenderloin earlier this year.
5. Massachusetts has a proposed 5% sales tax on elective cosmetic surgery; I think the government gets enough of our money. (Maybe they should learn to live within their means like the rest of do!)
6. Finding that perfect gift for a special somebody makes for a happy holiday.
7. And as for the weekend, tonight I’m looking forward to grilling Fillet Mignon for Susan, tomorrow my plans include cleaning the old Salvation Army quarters, and Sunday, I want to do something fun!