wiki-user: car

  • 0 Posts
  • 119 Comments
Joined 1 year ago
cake
Cake day: July 13th, 2023

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  • We have plenty of things to be old grumpy grouches about.

    “Those banks ruined the American dream and we bailed them out!”

    “Fossil fuel companies successfully lobbied the government to allow them to poison our planet in the name of profit!”

    “Those Disney crooks consolidated all media and destroyed independent creative ventures!”

    “Back in my day we could afford a house if we saved 10 years of earnings for a down payment and then took out a loan eventually totaling twice the value of the purchase price. You kids have it easy with your rental sleeping pods and low-monthly rate outdoors park subscriptions. You don’t even contribute to furniture or clothing industries because you don’t own a place to put any!”



  • The bottom 20% of earners aren’t likely to make the same amount in CA vs TX.

    California’s minimum wage is $16. Working 40 hours (hard on a minimum wage job for reasons) brings $640 a week. 10.5% of that is $67

    Texas’s is $7.25. 40 hours of that job is $290. 13% of that is $38.

    In this bad example, a minimum wage earner in California pays almost double the tax than a minimum wage worker in Texas. It’s a bad example for many reasons, including us not taking into account the extra spending power the California worker has after taxes.



  • I’m not an economist but that makes sense to me.

    What about a modified scenario:

    A small island has three cupcake makers operating out of their homes: Meta, Alphabet, and Bytedance. Each has captured a section of the island’s market with cupcakes and at this point, there’s no real opportunity for growth. Meta can’t convince Bytedance’s customers to switch because they prefer other flavors. Meta would need to purchase one of the other cupcake companies in order to expand.

    None of the cupcake makers are interested in selling their companies. They consider themselves elite and their successes feed into the CEO and shareholder perceptions of value and success.

    Now, we consider that one of the cupcake companies is funded by a rich uncle from a different country. The island’s elders decide that the uncle’s influence is too great and orders Bytedance to sell its cupcake company or leave the island.

    We’ve established earlier that people who like Bytedance cupcakes don’t necessarily want to eat Meta or Alphabet cupcakes, so if they leave the market, those customers may be gone for good. They may have a change of heart and decide that cupcakes of any flavor are fine, but they may also be angry that the government forced their favorite place out of business. In any case, Meta and Alphabet cannot rely capturing this segment of the market to grow.

    Faced with the dilemma of possibly gaining customers organically or definitely gaining customers by purchasing their preferred product brand, I’d argue that the remaining companies may jump on the opportunity to purchase Bytedance before they are forced out. None of the cupcake companies were up for sale in a traditional sense before, so this was never a realistic path to achieve growth.