Archives for posts with tag: buy low sell high

For a while, after WWII, many in the Eastern part of Europe were convinced that, soon, ‘the Americans will come’.
And save them from communism.

At the end of the Korean war, most of those hopes were dying away.
Whichever were still alive had been buried at the end of 1956. When the Soviets had occupied Budapest. And nobody lifted a finger…

The erstwhile hopeful had adapted to the new reality. Changed tack …
Instead of hoping that America will eventually deliver them from communism, they saved themselves. One way or another, they left their countries and pursued the American Dream in America proper.

They somehow reached those shores – welcoming shores, in those times, set to work and made it.
You see, in those times the American Dream was not as much about becoming rich as it was about becoming ‘your own man’. Being rich was considered useful, indeed, only it wasn’t seen as a goal in itself.

As to how to do it, things were crystal clear. Luck was optional while hard work was deemed essential. And, often enough for people to become convinced, things went on as expected!

‘Find what you’re good at, work hard and, sooner rather than later, your dream will come true’.

And it did. For many enough so that achieving the American Dream was considered to be the norm rather than an exception.
Maybe not for everybody. But for many enough so that Regular Joe was convinced that hard work and determination will take you places.

Is this assumption still valid today?

When so many of the well paying jobs have been exported?
When it’s far easier to make money by investing already owned capital than it is to work your way up the socio-economic ladder?

A lot of people point their finger at those who prefer to take hand-outs instead of accepting minimum wage jobs.
On the face of it, it doesn’t make much sense, does it?
No matter how generous, hand-outs will never be large enough for a comfortable life. While hard work will, eventually, take you there.
Are you sure about that? About hard work eventually taking you ‘there’? In the present conditions?

Furthermore, the former American Dream was about about giving your best before expecting Fate to reward your efforts.
Today’s mantra, ‘greed is good’, had completely altered the premises.
‘Get as much as you can, give as little as possible’ has become the new modus operandi.

What?!?

Maybe put in this way it will be easier to recognize.

Buy low, sell high.

‘Profit maximization’.

You see, using fancier words, those who prefer hand-outs to hard work do nothing but obey, intuitively, the law of the diminishing returns.

Then hand-outs should be drastically reduced!

That’s, indeed, one way of solving the problem…

Except for another ‘rule’.

You catch more flies with honey than vinegar!

But this is about ‘flies’, not ‘people’!

Yeah, right… as if people were less intelligent than flies…

You see, Henry Ford had found a way out. By dramatically increasing the ‘benefits’ extended to his workers he had managed to retain a stable work force. And, an unforeseen consequence, he had set in motion the wheels of the consumer society. The very economic set up which had made possible the fulfillment of the American Dream.

Currently, solvent demand is drying up.
Unnoticeably, for now.
For as long as credit will take up the slack, the evidence will remain under the radar.

But ‘evidence’ has the bad habit of hitting the fan.
Exactly at the worst possible moment…

It’s not necessarily a coincidence that this group of Goldman Sachs analysts chose the current moment in which to speak up, bucking the grin-and-bear-it culture.
There are a mix of factors at play: the ubiquity of social media, where the survey initially appeared; the rise of a generation more conscious of workplace toxicity and mental health; and a general sentiment of activism for equity.
The pandemic may have become a factor, too. Keenan notes that, from his experience, office camaraderie was one of the things that buoyed him through the worst days. In isolation during forced remote work, many of these tough experiences may be made even tougher, exacerbating their effects
.”

Meredith Turits, Is extreme working culture worth the big rewards?
BBC Worklife, 27th April 2021

And no, this is no joke! Alas…

Populism is scientific because its ‘adepts’ have a very rational behavior and use scientific tools to increase the appeal of their public messages.
And, on the other hand, populism is scientific because its advent is perfectly explainable given what we currently know. About our society, about our brains, about our psychology….

Let me start from the beginning.
In Thomas Kuhn’s terms, the last 60 or so years have witnessed a tremendous paradigm shift.
Science has replaced religion as the main paradigm and ‘religion’ has been demoted to  ‘religions’.

Science becoming the main paradigm means that we have grown confident about our knowledge. We might be aware that we don’t know everything yet but we continue to believe that we’re able to learn everything. That if we are diligent enough we’ll sometimes be able to look under every rock that is.
This attitude has led us to search for ‘perfection’. ‘Efficiency’ has displaced ‘redemption’. We have ceased our quest for salvation and are now obsessed with ‘buy low, sell high’. In other words, ‘make the most of it but strain yourself as little as possible’.

Which makes a lot of sense, doesn’t it?

A lot of sense… mainly when you no longer perceive the guy next to you as being a full-fledged member of your community. Your religious community, that is. Of your church.

You see, ever since Emil Durkheim, the sociologists have been aware that religion was not so much a story about the making of the world as a ‘common ground’. The ‘common core’ shared by the members of a given community. Which ‘common core’ makes it possible for those who share it to have respect. For themselves and for the other faithful members of the community. By sharing that common core, the individuals find their bearings in the ‘wide, wide world’ and, thus, know how to behave relative to their ‘neighbors’. With enough mutual respect among the individual members that the community is able to function. To survive, that is.

We no longer have that kind of community.
Our primary allegiance is no longer towards ‘church’. Most of us consider themselves primarily as members of a nation – something governed more by formal laws than by public sentiment, and only secondarily – if at all, as members of a ‘religious’ community.

Now, putting two and two together, it’s very simple to understand that in the given circumstances ‘populism’ was inevitable, right?

Too many of the would be leaders have no qualms about how they get what they want.
Power.
‘Buy low, sell high’ is the current mantra, remember? Accepted by all of us. Buyers, sellers, by-standards…
Too many members of the general public are willing to accept promises which are in line with their own expectations, even if those promises being put in practice means a lot of misery for OTHERS. Who cares about those others, anyway? They are not members of OUR ‘church’!

I’ll let you decide how sustainable is such a situation. I was going to use ‘community’ instead of ‘situation’ but it would have been horribly wrong. We no longer live in communities. We only happen to live in the same place.

For how long?

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