Sunday, December 4, 2016

BREXIT AND PROFESSOR GOOCH

Classic Bell Curve


There are teachers who teach us so much more than just the subject of their specialty. Professor Gooch was such a professor. She taught Econ 101 at Barnard College way back when Christ was a corporeal and I was a freshman. A large woman in every way, tall, broad, with a mind that encompassed centuries of economics, history, philosophy and even fashion.

I remember the first day of class when she announced that though she would assign reading in our economics textbook and she hoped we'd read it, but she would teach the principles of economics with class discussions.

Each class covered a certain economic topic like market forces, price, cost, and all the other basic concepts we had to master. But each discussion began informally when she would ask a student to talk about what she'd done yesterday. One discussion I particularly remember was a girl who'd bought mascara the day before. Now Professor Gooch eschewed mascara and all that went with it, but nevertheless it was a topic that interested her greatly. How did the young student decide which mascara to purchase? Magazine ad. Advertising costs and returns on that investment. Advertising industry. Where did she buy the mascara? At a discount drug store. Discounts and how and why businesses can achieve them. Where was the mascara manufactured? It was enthralling to think about all these things.

Well, her classes fairly flew by. We young students were preparing to run the world merely by purchasing mascara. The excitement in Gooch's classes was palpable. No one ever missed her class.

And now we come to Brexit. Clearly the EU bureaucrats never sat in Professor Gooch's classroom or the reason for Brexit would be obvious to them. Economies of scale. This is the principle which shows that you can often achieve great benefits by growing a company larger, benefits mainly like lower cost and more efficiency. However, the economies of scale typical simple graph is a bell curve, which indicates that up to a certain level, yes, bigger is better, but beyond that point, bigger is worse. Past the top of the bell curve, cost goes up and efficiency goes down. It's called the Law of Diminishing Returns.

What the EU and the Globalists haven't noticed is that they've gone way over the top of the bell curve into deep, deep debt. Evidently Globalism is too big to succeed. But the people in the British economy have noticed that they are deriving no more benefits from Globalism's gigantic corporations and want to scale back. This is a very prudent, rational, intelligent decision. One which any of us Gooch students would have reached from our mascara discussion in less time than it took to blow dry our hair. And don't you doubt it. Thank you Professor Gooch!!

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