FOREWORD
Witchdoctor studied this. Not only, he practiced it as entrepreneur in various fields of life and innovation… This is not some academic bullshit, it is a long years of thinking and doing, making, selling….
This series of essays will prove and show that all the search for some founding father pillar of economics is pure bollocks. The method applied will prove , by case limits and boundary facts, that there is no certain scientific proof of Value, Cost, Price and Profit as laws.. That means that no forever valid economics laws can be stated, produced, etc. The economic laws are, at the best, partial probabilistic ,econometrics principles on a given scale and model.
The whole economic mumbo jumbo is a scam with the EVIDENT political , ideological background and it is not a science, it is a scam used for perpetuating the winner mainstream models.
Whole schools of economics are a fraud with the hidden agenda and so are the ones who teach and propagate it. That does not mean that one has to ignore them .They are the civil arm force of the oligarchy with the final authoritarian or a fascist outcome..
The best method to approach the subject is to think the above notions as a members of a mathematics group theory.The subjects, and the notions involved to which the involved subject give the meaning, are acting on more layers of “circles” which intersect or cover,completely, almost completely or partially each other. There are two boundary cases in this overlapping or super imposing circles. The almost overlapping two circles which do not cover each other completely, lets say 1% is not covered by the second circle, does not means that the probabilistic outcome in economy is almost certain. The 1% can make a dynamic difference and overturn the final result in due time.
The overlapping of two groups does not mean that their inner value is the same. It is just a place in time.
The value , cost, price and profit are established with the intersection with another group of circles – The Offer and Demand, which is connected to the circle of Purchase power.
This, approach and conclusions, are the Philosophy of Economy. That never means that Witchdoctor is bollocking about it only, it means that this approach with WD dialectic skills will prove the fact that economy is a human junk science, or , it has no intrinsic value per se, or for the animals, plants or planet and even not for humans.
The next in This line is the Theology of Economy, which was already tackled in the essays written here- calvinist, protestant, etc roots of economic notions in the biblical and religious sense , like, debt, retribution, price of suffering, the chosen ones, and similar…
More on this also by Luigino Bruni,an italian economist, very good but not completely to the root of the matter.
Do not worry, the following examples, the limit and boundary proofs of the fake economic laws will be shown through dead simple examples.
By the way, have you noticed that Witchdoctor has just now established Two New fields of studies? The Philosophy of Economy and the Theology of Economy.That is a part of the human monkey mad proliferation of notions, meaning and semantics. But , at the end, it s all bollocks.DEADLY BOLLOCKS.
The Conquest of Value, Cost, Price and Profit
Just now, not a long ago, maybe next month, an Army of armed development businessmen was bulldozing a road to the upper head of the huge valley. They have finally arrived to the brim from where a fantastic view opened to a lush valley with millenium old forest, a silver river in middle flowing to the horizon.The armed businessmen had a special license from their chief Ballsonaro, to do whatever they liked with the place..
So they killed all the natives, completely bulldozed the valley and planted the Palm Oil trees.
For them there was no value in the valley as it is. The cost was bullets to kill the natives,bulldoze, burn the woods and sell some of the hundreds of years old trees,plant Palm Oil, and the price was established on Wall Street. The profit was only the difference between the cost of it, the workforce of enslaved Indios and the price the businessmen got . The circle of offer and demand established the price and the profit.
For the Indios, the valley had no value except that it meant their life and living. How much is that? It is essentially an irrational number, since it is a number between Life and Death. There is no choice, you always choose life. The cost of the Valley for the Indios was their living in it. But with no rent to pay for that. The price they paid was the price for living in such conditions which the valley gave. The profit for the Indios was living there.
The Armed Business developers had counted in the value, Cost and Price and Profit of all this, the whole system they have destroyed? Not a Cent, except for the bullets.
What was then the real value of the valley with all the millenium old trees water and plants and humans?
And what was the price for the ecosystem? Nobody is paying that.
The conclusion is; there is no founding father law of value, cost, price and profit. It is counted between the side which lost and which won but the real number is non existent.The number shown on Wall Street is a fake one and it just shows the offer and demand of Palm Oil at the given time.
Lets intersect the price of the Palm Oil with the butter price, for ex.
The Palm Oil is much cheaper and that is the reason why the palm oil is used in biscuits more than butter. This price is de facto overlapping with the purchase power of biscuit buyers who can afford more the palm oil biscuits and this is overlapping with the price and profit of producers. There is no value, cost and price and profit which means anything certain except that most of the group of buyers are having less money and the butter is out of majority group market of biscuits for the reason of a small number who can afford butter in biscuits ..
But in this relations between the prices and profit many things and events are unaccounted for, as the genocide of the Indios and the whole destruction of a valley for the Palm Oil and also, what kind of slaves are making the palm Oil and what kind of slaves are making the
Butter who is having what as a cost/wage and etc, etc, All is fake and the winner is the one who pays less, but the value and cost and price are faked.
The price is what you get for something. It is what somebody is willing to pay for, This sounds clever, it maybe is at a given moment, but it means NOTHING and here we go to;
Vincent van Gogh Sunflower
So, what was the value for Vincent, his painting of the Sunflowers picture? The value was his life and his skill to paint the sunflower differently as others did. The cost was, hmm, it was his brothers. His brother paid for Vincent oil colors, for the canvas, sometimes for rent and food, but his brother was tight and not kind. What Vincent got from making something very special, beautiful, and different from the others , when he was alive? Nothing, zero, nisba.The price of his works was almost zero, less than their cost. What Vincent got as Value? He got his life of new ideas and a life of total misery and suffering and mental problems, that is how the others treated him. What was Vincent`s Profit? Zero. except that he was very good, but this being a very good painter and different from others has PUT HIM COMPLETELY OUT OF MARKET!
Well, here we have proven that Not only that Value, Cost, price and profit are nothing at the given moment, but that even innovation of a process can put you out the of market! All confirming that economy has bullshit laws and is pure propaganda of the fake economosscientists!
So, Vincent at the time was having a product which nobody else was having, nobody could copy him and there was no demand for it!
The only offer with no group demand. And , after, when he died in pain and misery, some more time after, and the Sunflowers painting is worth now more than 25 millions!!! He was innovating, and finished as Giordano Bruno , but Vincent was nailed on the cross of offer and demand.
Yes, the idiots say that he was before his time! In fact, everything, everything is before the time the Idiots Clock is Showing!!
Ok ? But, has the Vincent painting of Sunflower, a right price? That is what it is worth when we add cost , price and profit? Yo are joking! This price is fantasy land. It is the same out of the market price as it was before when Vincent could not sell it!
So, the law of offer and demand which made the price of Vincent is another joke of human nature? And so it is the cost and price of the Sunflowers, which, by the way paid his brother providing the material. What is the cost of canvas and oil paints of the Sunflowers today? 30 euros? And the rest, he might have sold it for 25 millions (another joke), minus 30 euros and then divided the price of the painting from the profit for his internal accounting? Where is the profit in this price and profit sum ?, NOOO, you say it is Vincent idea and skill! Yes, that is why he died in misery and pain, you forgot? Idiots, with the idiot laws of economics.
So, a profit is also any irrational number, depending on the offer and demand , which is another irrational number depending on the demented group of customers demanding the goods, a group of idiots, as Marcuse and Fromm showed is the late capitalism, a mentally abused circle of groups,which have no whatever grounds in the grundrisse. Thats marx by the way, grundrisse, hehehe.
The profit may only arise when the maker and the owner are two different entities, if not, you can only invent it for the tax people to make them happy and give something to tax.and invent a load of costs, night clubbing with the buyer included, but this was not Vincent.
As in the post, profit = excess saving
Here we have seen that ; even with no value , cost, price and profit a thing can change in value price and profit. With time or with demand, like Fakebook.
Value, cost, price and profit are no entities if there is no demand, which in turn gives the value, cost, price and profit. But the demand is a no entity if there is no purchase power! Yo may demand for a piece of bread, but if you have no money, there is no demand and if you want the cake with palm oil, you have to have more money and if you want the cake made with butter, then you have to have more and this is all in this bollocks. So, there is no inherent law or fact or whatever which can be a pillar of this House Of Cards! It is in the overlapping chain of layers of circles and up yours.
All the marxist and all the walras ,hayek search for stable unit, neoliberal bollocks of price per unit per hour per work per bollocks is just a overlapping group math at the given moment. Of probability and current situation of the forces opposed , the dominant and subdominant groups of circles overlapping ,like owners versus unions in the fight for the cake, police included as the guardian of peace.of the all.
IT is A CON, of overlapping groups.
And there is also; at what price you think you can be sold?For what profit, meaning your profit when you sell yourself bigger than is your price?
The last dead simple example;
Tarranto Marghera Cozze and Marijuana or chemicals and steel.
To put a megagalactic chemical factory just outside Venice town, to pollute there forever, cancer and all, what was the value, same in Taranto steelworks. For the people and the children not working in this Steel or Chemical, it was and is a huge cost, their health, for the people working, it was the price they paid, cancer included, to make a living. The profit? Went overseas.
But Italy had in this way his own steel and chemicals, the overlapping circles…
It was the difference with the profit, what they had as cost and what they had in the offer and demand establishing the price, which was subsidized for years by the Italian State from other sources and debt overlapping, and not counted in the real price , and in the real price was not counted, the air, water, sea ,land pollution, health and instead they could have had fields of tomatoes, olives, wine, marijuana, and mussels and fish.
Now, what we were talking about here?
The Value? The Cost? The Price ? The Profit?
Yes, bollocks.
We were talking academic bollocks which bring people to not believe in anything and the same bollockers hijack them and guide them to the fascist of the same Masters and Producers repeating of the farce as a last joke.And then we cry and swear it will not happen again…
W.