Monday, September 15, 2008

Buzz Words

If I had the chance I would punch Wendy in her cheeseburger-loving cartoon face. Not just because of her asinine categorization of meat-lovers as "meatetarians", which is reason enough, but more so for reckless attempt to hop on the bandwagon and throw around some buzz words.

Today's Buzz Word.... Economics. Go!

You sure aren't an economist Wendy, and neither are the writers for Wendy's commercials. Your 99cent double bacon grease burger is not appreciating in value. A rational individual would trade the burger for a dollar and simply buy another burger and be 1cent richer. However, it's obvious that the characters are on a lunch break, which makes it likely that the time spent and transportation cost to acquire the second sandwich would be greater than the marginal revenue of 1cent from selling your 99cent sandwich for 1 dollar. Making the sale unprofitable. Not to mention, a persons individual utility for an item, say a cheeseburger from a fast food chain, is subjective.

How can your dollar be worth less today? Well maybe it's because of the current account balance. I'm talking capital account surplus + current account deficit, and the US is so entrenched in foreign finances that to begin to balance the US current account US citizens would have to tilt their consumption toward domestic products and this dynamic would have to simultaneously play out in reverse the rest of the world over.
Maybe it has something to do with the fact that Macroeconomic theory clearly states that running a twin deficit for any extended period will cause a dollar decline. Ignorance isn't cute, Wendy. Maybe instead of spewing your ill-informed opinions about economic stimulus packages you should pick up an econ 101 textbook.