Here Is How We Vote for $800 Billion

[PapaG]

Wow

http://www.politico.com/blogs/glennthrush/0209/Did_Pelosi_get_rolled.html?showall

“[Senate Democrats] don’t know everything that’s in the bill,” said a laughing Charles Rangel (D-N.Y.), chairman of the Ways and Committee. “So I’m afraid to go to that damned conference."

What the eff is going on in DC?

 

[PapaG]

Re: Here Is How We Vote for $800 Trillion

I mean BILLION. Or maybe it's trillion by now. Whatever.

 

[Karl Malone's Elbows]

Re: Here Is How We Vote for $800 Trillion

What the eff is going on in DC?

Bizness as usual.

WHERE THE FUCK is that 10 million dollars going to?

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

Caption: Secretary of the Treasury under the Bush Administration.

barfo

 

[PapaG]

Re: Here Is How We Vote for $800 Trillion

Caption: Secretary of the Treasury under the Bush Administration.

barfo

I'd trust Diddy more than the Tax Cheat they have at the helm now. At least Diddy created an empire in the music business.

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

I'd trust Diddy more than the Tax Cheat they have at the helm now. .

Would you? You'd rather than P. Diddy as Secretary of the Treasury than Timothy Geithner? That's interesting.

barfo

 

[Nate4Prez]

Re: Here Is How We Vote for $800 Trillion

here is a website where you can check to see where that money is going: http://www.recovery.gov/

I wonder how much of the bailout went to staffing, and building the site.

 

[AgentDrazenPetrovic]

Re: Here Is How We Vote for $800 Trillion

http://financialstability.gov/

haha

 

[Karl Malone's Elbows]

Re: Here Is How We Vote for $800 Trillion

here is a website where you can check to see where that money is going: http://www.recovery.gov/

I wonder how much of the bailout went to staffing, and building the site.

barely measurable fractions of a percent.

 

[MickZagger]

Re: Here Is How We Vote for $800 Trillion

I'd trust Diddy more than the Tax Cheat they have at the helm now. At least Diddy created an empire in the music business.

What if I told you that Diddy is a Democrat?

 

[PapaG]

Re: Here Is How We Vote for $800 Trillion

Compromise reached, DJIA in another freefall. I'd laugh if I weren't crying.

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

barely measurable fractions of a percent.

See, that's how people get fooled into spending more money. There's an entire field dedicated to behavioral economics. Richard Thaler and "The Winner's Curse" is a good start if you want to learn more about it.

If you want to get people to spend more money, here's what you do: When it's a small amount of money, focus on the actual dollar increase. For example if a pencil at one store is $0.10 and the one you carry is $0.20, say "it's only $0.10 more."

When it's a large amount of money, focus on the percentage increase. So, if the staff for a $1 trillion bill costs $50MM, then you say "C'mon that's only 0.005%".

The real way to look at those two problems is to say, "That pencil is 100% more than the other store" and "The staff costs $50,000,000".

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

The real way to look at those two problems is to say, "That pencil is 100% more than the other store"

If the gas to get to that store costs you an extra 50 cents and your time to drive there is worth much more than 10 cents, how does saying "The pencil is 100% more at this store" help you make a rational choice?

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

If the gas to get to that store costs you an extra 50 cents and your time to drive there is worth much more than 10 cents, how does saying "The pencil is 100% more at this store" help you make a rational choice?

Assume they're next door to one another. But I get your cute game. Let's also throw in opportunity cost as well, since we're just trying to be silly.

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

Assume they're next door to one another. But I get your cute game. Let's also throw in opportunity cost as well, since we're just trying to be silly.

I wasn't trying to be silly. I was asking you a question, because it wasn't clear to me why you'd think of either one in percentage terms, if you're trying to make a decision. I think one should think in real costs, rather than percentage cost, all the time in order to make rational decisions.

If there's no trade-off in picking one pencil over the other, one being cheaper should always be controlling, whether it's 10 cents difference or "100% difference." However, if there is some cost in going for the other pencil, then quantifying all the effects gets you to the right answer, whereas simply saying one pencil is "100% more" doesn't really help with the decision.

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

I wasn't trying to be silly. I was asking you a question, because it wasn't clear to me why you'd think of either one in percentage terms, if you're trying to make a decision. I think one should think in real costs, rather than percentage cost, all the time in order to make rational decisions.

If there's no trade-off in picking one pencil over the other, one being cheaper should always be controlling, whether it's 10 cents difference or "100% difference." However, if there is some cost in going for the other pencil, then quantifying all the effects gets you to the right answer, whereas simply saying one pencil is "100% more" doesn't really help with the decision.

You missed the point, but you can continue to think about pricing anyway you wish.

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

You missed the point, but you can continue to think about pricing anyway you wish.

I'm unsure why you're getting huffy over a topic you brought up. I was simply asking for clarification. If you're unable to clarify, that's fine.

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

I'm unsure why you're getting huffy over a topic you brought up. I was simply asking for clarification. If you're unable to clarify, that's fine.

No huffiness. Other costs had nothing to do with it. It's possible for me to tell you that you missed the point and still have my pulse rate below 60.

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

No huffiness. Other costs had nothing to do with it. It's possible for me to tell you that you missed the point and still have my pulse rate below 60.

I was asking for a clarification, as to why we should look at small costs in percentage terms, in general. I didn't miss the point, I was inquiring about your general point, not your specific pencil example.

 

[Денг Гордон]

Re: Here Is How We Vote for $800 Trillion

I like how the college scholarships went from $4,000 to $2,500 and went from having no qualifications other than being a student, to including income requirements.

And by like, I mean it's a load of shit.

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

I was asking for a clarification, as to why we should look at small costs in percentage terms, in general. I didn't miss the point, I was inquiring about your general point, not your specific pencil example.

Because the mind thinks of large number increases in percentages and small number increases in dollars and cents. Optimal decision-making should be the other way around. It allows the person setting the pricing of items to maximize their profit exploiting the way consumers think.

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

Because the mind thinks of large number increases in percentages and small number increases in dollars and cents. Optimal decision-making should be the other way around.

Right, my question is why is it optimal to think about small numbers in percentages? Why would we not be better off thinking in both small and large numbers in dollars and cents?

I can understand why we can make mistakes thinking of large numbers in percentages, but the reverse isn't clear to me.

 

[maxiep]

Re: Here Is How We Vote for $800 Trillion

Right, my question is why is it optimal to think about small numbers in percentages? Why would we not be better off thinking in both small and large numbers in dollars and cents?

I can understand why we can make mistakes thinking of large numbers in percentages, but the reverse isn't clear to me.

The idea has to do with how you price to maximize revenue. You're a perfect example. You may not mind paying $0.50 extra for a widget, but it may be $1.50 at this store and $1.00 at another. If I can charge 50% more with no loss in volume then I'm a happy guy.

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

The idea has to do with how you price to maximize revenue. You're a perfect example. You may not mind paying $0.50 extra for a widget, but it may be $1.50 at this store and $1.00 at another.

Heh, how am I a perfect example? I'd buy the $1.00 one. Not because it is 50% less but because it is 50 cents less (and this example assumes no outside costs, even time).

My point was simply that IF there are outside costs (I understand that your example doesn't include them), it's easier to account for them, when making a decision, putting everything in dollars and cents. Whether we're talking about small costs or large costs.

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

The idea has to do with how you price to maximize revenue. You're a perfect example. You may not mind paying $0.50 extra for a widget, but it may be $1.50 at this store and $1.00 at another. If I can charge 50% more with no loss in volume then I'm a happy guy.

You are a happy guy cause you are in the widget business, though. Minstrel, on the other hand, just needs to buy one widget every twenty years, so he really doesn't give a damn if it costs an extra 50 cents. 50 cents is like pocket change to Minstrel.

barfo

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

You are a happy guy cause you are in the widget business, though. Minstrel, on the other hand, just needs to buy one widget every twenty years, so he really doesn't give a damn if it costs an extra 50 cents. 50 cents is like pocket change to Minstrel.

barfo

Okay, I hadn't seen Minstrel's response just before mine. I take it back, he does care about the 50 cents. I, on the other hand, would buy the first widget I see and wouldn't care about the price. I'm your customer.

barfo

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

Okay, I hadn't seen Minstrel's response just before mine. I take it back, he does care about the 50 cents. I, on the other hand, would buy the first widget I see and wouldn't care about the price. I'm your customer.

I can see inefficiencies to be exploited with customers who will pay any price for the first widget they see.

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

I can see inefficiencies to be exploited with customers who will pay any price for the first widget they see.

Well, not any price, but $1.50. For a buck fifty, I am not going to comparison shop.

barfo

 

[Minstrel]

Re: Here Is How We Vote for $800 Trillion

Well, not any price, but $1.50. For a buck fifty, I am not going to comparison shop.

Well, me either, if time is involved. maxiep's example assumed no time cost...buying either widget was equally easy. If equally easy, I'll take the cheaper. I just wasn't sure why that cost savings should be thought of in percentage terms as opposed to absolute value terms.

 

[barfo]

Re: Here Is How We Vote for $800 Trillion

Well, me either, if time is involved. maxiep's example assumed no time cost...buying either widget was equally easy. If equally easy, I'll take the cheaper. I just wasn't sure why that cost savings should be thought of in percentage terms as opposed to absolute value terms.

I suppose the model is that you buy a widget every day (they sell these widgets at Starbucks, probably), and you don't know how to multiply by 365. 50% sounds like a big number, 50 cents sounds like a small number. So you'll scare yourself more if you think of 50%, and maybe you'll buy that widget at 7-11 instead.

Then you'll take the money you saved over the course of your lifetime and put it down as a deposit on a pending transfer of $10 million from The Honorable Mr. Obondo of Nigeria.

barfo