0.25 w BT /F1 12 Tf 510.125 39 TD 0 Tc 0 Tw (31)Tj ET BT 90.125 695.5 TD (British consumers end up better fed and with more manufactured goods than if the)Tj ET BT 90.125 681.5 TD (country grew enough of its own food to feed itself. )Tj ET BT /F2 12 Tf 90.125 141 TD (Profits and Losses)Tj ET BT /F3 12 Tf 90.125 113.5 TD (\322An enterprise system is a profit and loss system, and the loss part may be even more)Tj ET BT 90.125 99.5 TD (important than the profit part. )Tj ET BT 90.125 501.5 TD (Prices act as a guide for consumers and producers. But, the sad fact is that all)Tj ET BT 90.125 681.5 TD (countries impose \322unfair\323 restrictions on imports, usually in response to some internal)Tj ET BT 90.125 667.75 TD (special interests. When that happens, the)Tj ET BT 90.125 473.75 TD (in-flow of investments from other sectors of the economy stop. )Tj ET BT 90.125 556.75 TD (Failure to look ahead is extremely common in government policy making. The cars of)Tj ET BT 90.125 335 TD (1950 are not the same as the cars of the year 2003. But in the \32450s it began to change when they lost $50MM in one)Tj ET BT 90.125 584.5 TD (52 week period. That)Tj ET BT 90.125 556.75 TD (was the cost of greater efficiency. The real losses occur when the)Tj ET BT 90.125 584.5 TD (public allows this kind of rhetoric to lead them astray from the basic fundamentals of)Tj ET BT 90.125 570.75 TD (economics. Adding to the total money supply. If the business goes bankrupt, your)Tj ET BT 90.125 99.5 TD (stock could be worthless, while a bond would have some value, based on whatever assets)Tj ET BT 90.125 85.75 TD (remain to be sold, even if that only pays the bondholders and other creditors pennies on)Tj ET endstream endobj 60 0 obj 4189 endobj 58 0 obj << /Type /Page /Parent 46 0 R /Resources << /Font << /F1 6 0 R >> /ProcSet 2 0 R >> /Contents 59 0 R >> endobj 62 0 obj << /Length 63 0 R >> stream 0.25 w BT /F1 12 Tf 510.125 39 TD 0 Tc 0 Tw (22)Tj ET BT 90.125 709.25 TD (Gold continues to be preferred to many national currencies, even though gold earns no)Tj ET BT 90.125 695.5 TD (interest, while money in the bank does. )Tj ET BT 90.125 640 TD (In short, prices force people to share, whether or not they are aware of sharing. And if)Tj ET BT 90.125 155 TD (this enterprise prospers, you are only entitled to whatever rate of return was specified in)Tj ET BT 90.125 141 TD (the bond at the outset, no matter how many millions of dollars the entrepreneur makes)Tj ET BT 90.125 127.25 TD (with your money. )Tj ET BT 90.125 653.75 TD (Many trends reported in the media or proclaimed in politics depend entirely on which)Tj ET BT 90.125 640 TD (year has been chosen as the beginning of the trend. )Tj ET BT /F2 12 Tf 90.125 168.75 TD (Deflation)Tj ET BT /F1 12 Tf 90.125 141 TD (The money supply in the United States declined by one third from 1929 to 1932, making)Tj ET BT 90.125 127.25 TD (it impossible for Americans to buy as many goods and services as before at the old)Tj ET BT 90.125 113.5 TD (prices. As investors)Tj ET BT 90.125 446 TD (acquire more information about the condition of the companies they have invested in, or)Tj ET BT 90.125 432 TD (the condition of other companies, or other industries which look like a better place to put)Tj ET BT 90.125 418.25 TD (their money, the money moves and stocks rise and fall accordingly. There have been many short-run)Tj ET BT 90.125 570.75 TD (periods when bonds and gold held their value while stock prices plummeted. Right now that scarcity is money based on poor)Tj ET BT 90.125 459.75 TD (cash flow. )Tj ET endstream endobj 108 0 obj 3582 endobj 106 0 obj << /Type /Page /Parent 103 0 R /Resources << /Font << /F1 6 0 R /F2 7 0 R >> /ProcSet 2 0 R >> /Contents 107 0 R >> endobj 110 0 obj << /Length 111 0 R >> stream 0.25 w BT /F1 12 Tf 510.125 39 TD 0 Tc 0 Tw (27)Tj ET BT 90.125 709.25 TD (selected as the focus of the discussion. Instead, the point is that what is being sold in the)Tj ET BT 90.125 210.5 TD (two places is not the same, even when the cameras themselves are physically identical. )Tj ET BT 90.125 168.75 TD (If you buy bonds, your chances are only 50:50 of getting your money back at all. It also lends)Tj ET BT 90.125 459.75 TD (money to banks, which the banks can then re-lend to the general public. On the other hand, if the business succeeds and its assets increase ten-fold,)Tj ET BT 90.125 695.5 TD (then the value of your stock increases ten fold. Anybody who loses stops trading. All)Tj ET BT 90.125 501.5 TD (these factors and more must be kept in mind and weighed by the owner, and continually)Tj ET BT 90.125 487.5 TD (adjusted to, if the business is to survive, much less be profitable. In a sports stadium, any given)Tj ET BT 90.125 335 TD (individual can see the game better by standing up, but, if everybody stands up, everybody)Tj ET BT 90.125 321.25 TD (will not see better. )Tj ET BT 90.125 653.75 TD (Where a monopoly or cartel maintains prices that produce higher than normal profits,)Tj ET BT 90.125 640 TD (other businesses are attracted to the industry. In a series of long essays, this book presents an in-depth look at key beliefs behind many mistaken and dangerous actions, policies, and trends. US Steel)Tj ET BT 90.125 515.25 TD (stock went from 261 3/4 to 21 1/4 and GE fell from 396 1/4 to 70 1/4. )Tj ET BT 90.125 99.5 TD (Just another reminder that economics is the study of the use of scarce resources that have)Tj ET BT 90.125 85.75 TD (alternatives. The ONLY person whose payment is contingent upon)Tj ET 261.25 416.75 34.75 0.75 re f BT 90.125 404.5 TD (how well the business is doing is the owner of that business. )Tj ET BT 90.125 113.5 TD (A sudden and widespread destruction in housing in a given area means that there may not)Tj ET BT 90.125 99.5 TD (be nearly enough hotel rooms for displaced people to get the kinds of accommodations)Tj ET BT 90.125 85.75 TD (they would like. It is of course also possible to share)Tj ET BT 90.125 626 TD (politically, by having the government assume control of natural resources, as it can)Tj ET BT 90.125 612.25 TD (assume control of other assets, or in fact of the whole economy. The)Tj ET BT 90.125 210.5 TD (FICA premiums deducted from paychecks for social security are immediately spent upon)Tj ET BT 90.125 196.5 TD (their arrival in Washington \320 either to pay for any of the many government activities,)Tj ET BT 90.125 182.75 TD (from fighting wars to paying the travel expenses of members of Congress on junkets. Moreover, changes outside the restaurant, in)Tj ET BT 90.125 515.25 TD (the kind of neighborhood around it for example, can make or break its business. One company had)Tj ET BT 90.125 390.5 TD (all the cranberries. )Tj ET BT /F2 12 Tf 90.125 459.75 TD (A failure to understand the importance of human capital contributed to the defeat)Tj ET BT 90.125 446 TD (of Germany and Japan in World War II. )Tj /F1 12 Tf 121.865 0 TD (Smith warned against \322the clamour and)Tj ET BT 90.125 335 TD (sophistry of merchants and manufacturers,\323 whom he characterized as people \322who)Tj ET BT 90.125 321.25 TD (seldom meet together, even for merriment and diversion, but the conversation ends in a)Tj ET BT 90.125 307.5 TD (conspiracy against the public, or in some contrivance to raise prices.\323)Tj ET BT 90.125 279.75 TD (David Ricardo, spoke of businessmen as \322notoriously ignorant of the most obvious)Tj ET BT 90.125 265.75 TD (principles.\323 Knowing how to run a business is not the same as understanding the larger)Tj ET BT 90.125 252 TD (and very different issues involved in understanding how the economy as a whole affects)Tj ET BT 90.125 238 TD (the population as a whole. Marxism: Philosophy and Economics. )Tj ET BT 90.125 127.25 TD (Sometimes the charge is made that profits are short-run gains, with the implication that)Tj ET BT 90.125 113.5 TD (they come at the expense of longer-term considerations. The United States was where the action was and this was)Tj ET BT 90.125 570.75 TD (where many foreigners wanted their money to be, in order to get in on the action.