Okay, ladies and gentlemen. Welcome to your first day at the College for Dummies, class for slow learners in economics and business administration. Let’s start with a quiz.
For the following question, let’s assume that you own a candy store that brings in $30,000 a year and that it is in debt for $30,000.
Let us also assume that you also want to stay in business and not turn into the most ghastly failure in your town’s business history. However, you have some problems.
Your overhead is $15,000 a year. Fresh stock costs you $15,000 a year. You’re nearly out of stock, and a lot of your products are old, stale, out of date, and looking tired. Moreover, the big, new, and very shiny China Candy Store across the street not only sells fresher candy, but also milk shakes and hamburgers, so it’s attracting nearly all of the business you used to get.
Oh, and one more thing: A friendly banker is ready, willing and able to lend you all the money you want – provided you use it to buy fresh candy and other products, freshen up your store’s infrastructure, and advertise.
A) Say, “No, I’m going to pay off my debt first so my son won’t have to inherit any debt when I die. To do that, I’m not going borrow any moey so I can sell fresh candy or renovate my store or add new products and employees. Instead, I’m going to keep selling stale candy until I run out of stock and have nothing to sell and no customers. That’s the only practical way to pay down what I owe and leave something for my son.
B) Borrow enough money from your friendly banker to get fresh stock, open up a milkshake and hamburger counter that competes with the China Candy Store across the street, and renovate your premises so it will look nicer and attract more business than your competitor’s. Oh, and also spend some money on advertising, so people will know what a great candy store you’re running these days and will want to patronize your store again. As the money starts coming in, use some of it to slowly pay off your debt, and the rest to keep refreshing your stock, your advertising, your product offerings, and to hire new employees to handle the overflow business you start getting.
C) Go home and beat the crap out of your wife, Democrata. Tell her it’s all her damn fault that you’re in hock and you’ve got almost no customers left, and that if she didn’t keep asking you to borrow some more money to get your business restarted, everything would be better.
D) Call your banker and say, “Look asshole, stop saying that if I don’t borrow some money and fix up my business and start selling more, new and better products I’m gonna go bankrupt. Bankruptcy isn’t so bad. Even if the Sheriff padlocks my store, people can pass money to me through the mail slot and I can slip stale candy back at them through the same slot. And if the Sheriff has the nerve to seal the mail slot, I'll pass the candy through the keyhole. And that way I can pay off my debt. And if the sheriff comes and starts selling off my stale candy and store fixtures, the money from those sheriff’s auctions will pay off some of the debt, too.
E) Borrow money from your banker, but instead of using it to by fresh stock and renovate your store, use it to firebomb the China Candy store across the street. And maybe some of those Muslim-owned stores down the block.
ANSWER: If you chose B. You’re a Democrat. If you chose A, C, D, or E you’re either a Republican and an idiot, or you’re Barack Obama trying to pretend you’re reasonable.