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Economics 101, Chicken Style

Updated on April 30, 2013

One of the saddest things I see is the lack of understanding in people about basic economics, particularly when it concerns capitalism. This article revives an old story through a Youtube video and then makes some comments regarding realistic economics.

"The Little Red Hen" as told by Ronald Reagan


The story of the the little red hen makes economics very clear. But I wish to add some additional points for clarification.

  1. The purpose in business is to work hard to achieve a greater goal. Often this goal is to take care of your own family. Contrary to modern socialist opinion, businesses are not charities. They exist to make a profit. Most businesses in the US are small businesses, owned by families trying to exist.
  2. Businesses are often criticized for being selfish with the profits. Like the little red hen, the people running these businesses work very hard to reap the rewards. Hard work should be rewarded with great results.
  3. The last part of the story is the important part. The little red hen had her "profits" taken from her to give to the barn yard animals that did not want to work. The hen never made that mistake again. If the socialists keep taking the incentives away from businesses to make a profit, those businesses will no longer operate. Socialists fail to recognize that in being punitive toward businesses, the employees and the consumers are the ones that get hurt. You might think this is selfish, but it is reality.
  4. If socialist liberals want to have businesses become charities, let them start one and run it that way. All the socialist millionaires from George Soros to Al Gore make their millions but we do not see them giving it all away. Why should other businesses be charities if the socialist icons will not do it?

Like it or not, there are definitive results that happen in a capitalist society. Businesses exist to make a profit, not for social engineering. That cannot be changed as long as there is capitalism. So maybe capitalism is the problem for the socialists.


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