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URL:  https://boards.fool.com/capitan-have-to-rip-apart-this-paragraph-as-24991460.aspx

Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/2/2007  8:43 PM
Author:  Dwdonhoff Number:  200198 of 603176

Capitan,

Have to rip apart this paragraph... as unfortunate as it is against Mish's admiration of it...

The engineers that work for Boeing are inovative and productive. They just happen to make bombs instead of gadgets.

So far, true enough.

If they were all to make gadgets, there would be no profits in making gadgets.

HUH??????? Again, in what universe, and by what logic???

A) What do you refer to as "gadgets"?
B) There are exponentially mre engineers that DO NOT produce bombs than there are who do... and you are implying that "there are no profits" for the production of these engineers?

So thanks to the goverments, Boeing shareholders have a smile on their face. And they know whom to thank.

OK... BA shareholders love the taxpayer's dollar... true dat.

Apple's shareholders have a grin for the same reason. Although they are less likely to be aware of the government service they recieve--reduced competition.

Huh???

Then the bombs fall somewhere, and that means a lot of bridges and power stations and whatnot to rebuild. Rebuilding them requires loans. Loans pay interest. Higher demand for loans means higher interest, which puts a smile on the face of bondholders. Then it requires doing the actual work.

This is a long-ago proven fallacy that collectivists bury their head in denial about. The economic activity of rebuilding from destruction NEVER equals the value destroyed. War is ALWAYS a net economic loss to the greater aggregate society. It's the most cowardly bastardized permutation of competition there is... one where the goal is to eliminate the game.

All these contractors who are hired could be competing on selling you a bathroom renovation. Which means no profits because there are already too many bathroom renovations and not enough people who can afford them. So half of them are hired by Halliburton and all profit.

You're logic is circularly inverted. If there are no profits in bathroom renovations (or at the point in time where competition has brought margins to the point where the ineffective cannot compete) then no further engineers/contractors will enter that market. The remaining contractors will go where they ARE most profitably effective. THIS is the magic of the free market... it naturally self-sorts in the most efficient manner without the need for external intrusion.

Cheers,
Dave

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