Magnet Investments

American Family

When reaching the level where the benefit delinquent is equal to the cost delinquent, its improvement is carried through. Lesson for the crisis: if you find that benefit delinquent to acquire plus a quota of the deep one managed by the company of the Maddof is greater that the cost delinquent, thinks of new. People answer the incentives: as the people take decisions comparing costs and benefits, its behavior can move when the costs or benefits if modify. That is, the people answer the incentives. When the price of apples increases, for example, the people decide to eat more pears and little apples, because the cost to buy apples is bigger. At the same time, the apple producers decide to contract more people and spoon more apples, because the benefit of vender apple also is bigger. Lesson for the crisis: if you work in a great American bank that granted to bond millionaire for its executives as incentive so that they took decisions riskier, I find that you probably already are dismissed.

The commerce can improve the situation of all: when a member of its family looks job, concurs with members of other families who also are in job search. The families concur ones with the others when they go to the purchases, why each one of the families wants to buy the best products for the lesser price. Thus, in certain direction, each family in a economy competes with all the other families. Although this competition, its family would not be in better situation if it isolated of the other families. It made if it, would have to produce its foods, to confection its clothes, to construct its proper house. Evidently, its family earns very with the possibility of being able to deal with others. A commerce allows that each person if specializes in the activities where she is more apt, either in agriculture, the confection of clothes or the construction.

Tags: economy