no third solution

Blogging about liberty, anarchy, economics and politics

Comments on Comments #27

October 23rd, 2008

In Reader Mail # 67, FSK cites my post about Who Owns General Motors.

David Z did a calculation that indicated that GM might be worth more to its employees than its shareholders. David Z got the calculation wrong. Adding up salary and benefits, unionized autoworkers make closer to $50-$70/hr, instead of $13/hr..

What I said was:

I’m going to go out on a limb here, and assume that FTEs at General Motors earn more than $13/hour in gross compensation.

What I should’ve said was, I’m sure the average FTE at GM earns far more than $13/hour in gross compensation, but let’s play with the $13 figure just for grins. Using the $50-70 range which may even be on the low end, GM’s employees could purchase the company with 2 or 3 months worth of savings.

Right now, GM stock is trading at around $6/share. Employees could purchase the company outright in a month, if they were so inclined.

Again, I’m really not going anywhere with this train of thought, I just thought it was interesting for some reason.

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I’ve been receiving a small amount of traffic from About.com, thanks to Laura Sternberg’s October 3 piece on medical marijuana in michigan. Laura actually used my post on medical marijuana in Michigan as one of her sources. Thanks, Laura!

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modern finance in a nutshell. Interesting.

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Mike Gogulski left a comment on Blue Screen:

ssuming that you’re not pressed to recycle the bunked machine right now, there are tools — I am just pressed to find them. I’ve been perhaps uncharacteristically lucky in dodging from internal to external hard drive for so many years that it’s never hit me this way.


Thanks Mike, for the offer. I was able to download and burn a Linux Boot CD, and after changing the boot order from HDD to CD-ROM, I was able to access my files through the pared down Linux OS. I have successfully transferred most of my files to a portable HDD on loan from my father. No new laptop, yet.

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Tony asked a question in response to an ongoing discussion, under my post Gold is NOT a fiat currency:

I accept that there are objective criteria for choosing a medium of exchange. Those criteria (supply is fixed) make gold objectively better than other items. But the supply of oil, copper, etc is also fixed. Why gold over those?

Without reinventing the wheel on this one, gold’s limited supply is only one of the criteria which must be met in order for a commodity to be monetized. Oil is a poor choice because it is consumed. Gold is not consumed or otherwise destroyed (AFAIK) in any of its uses. Moreover, oil as a raw material is of varying quality. Like any other element in nature, a unit of gold is exactly the same as any other unit; now and forever. It is relatively easy to divide or recombine units of gold. Gold also has a high value/weight ratio compared to just about anything else in the known world.

A while back, Tony inquired about my general hostility towards fractional reserve banking. His inquiry has not been ignored, I just haven’t had time to respond adequately.

no third solution

Blogging about liberty, anarchy, economics and politics