Friday, January 9, 2009

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universal laws

Believe me, studying economics in the middle of summer is not a pleasant experience even if the matter is, as far as set aside by the dominant political class, of considerable interest.
In trying to determine the number of statutes, reports and systems that prevailed in the globalized world that here in the summer of 2003, stands in front of me an explanation that explains many events, successes and failures of our daily lives.

Who has not happened to see the little flower shop that produced box office, fail as soon as he dared to grow?

Let us explain it with a simple example. A farmer

accustomed to tilling his land with a small hoe, having a small nest egg of money decides to invest in a medium-sized hoe to make sure that his work becomes faster and probably less tiring.
In fact, this investment produces the desired effect with the consequent increased intake of money.
Similarly, decided to buy a hoe bigger with the same result had previously but with a new variant. With the new hoe the weight of the earth becomes evident after several plates and is forced to stop to recuperate. In any case, our peasant note that, although in small quantities, increasing the size of his hoe has produced a benefit to his business. Greedy, try to go further. The result is that it gets to be virtually unable to carry out their activities as the hoe great prevents him from working the land because of the considerable size and weight of the turf. This investment has resulted in a loss to the poor farmer who has faced an unnecessary expense and lost a good part of its production.
This story describes roughly what Ricardo at the beginning of the nineteenth century named as law of diminishing returns.

It 'clear that the same law explains why the Dutch workers, who work an average of 6 hours per day, making it more of Italian workers who work 8 and otherwise suffer more accidents at work.
In light of this law is clear that the way to create new businesses for profit, is not to cut jobs, an activity that reduces the company to a state of paralysis, as in the peasant with a hoe great - but necessitates the search for new products and greater access to manufactured goods. The core of this law can apply it to physics, in fact, some scholars believe that the study of energy efficiency there is a point beyond which took over chaotic elements that do not favor the resulting increase in energy. The same law can apply to the heating or your car (I say at once that pushing the throttle beyond a certain level you will only get greater consumption of your car in front of a small speed increase or no). If you want you can experiment with the dosing with your partner. Do not exaggerate!


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