A Counting School - Hardcore Chartered Accountancy

Trainwreck of Economic Logic

Study the logic in the following exchange from this doctor's blog : Several years ago a wise man said something to me that really impacted my life. He was a Pharma drug rep, but prior to that, he was an accountant for a financial service company. One day, during his old career, he had an epiphany of sorts when he was conversing with an investment banker. The accountant lamented to the banker, "How come you make so many times what I make?" The banker responded, off handedly, "Because I make money and you cost money." "Because I make money and you cost money." Wow! Several weeks later, this accountant left his company and went into sales so he could "make money." He told me that story over dinner one night and I had epiphany of my own. There are 2 types of people in the world: those who make money and those who cost money. People that make money will always be worth more than those who cost money. Most of us fall into the cost money category. Think...

Differences in USD and CAD prices, and healthcare again

Over at one of the discussion forums I visit there was a heated debate about the reason for the higher prices of goods in Canada, despite the fact that the Canadian dollar has hit parity with that of the Americans. The debate spilled over into other various fun topics, including taxes and healthcare. One person commented that taxes have little to do with price differences, "The fact that anyone thinks that stuff like health care and taxes have anything to do with price difference, they deff need to go back to school. You don't add taxes to the price of a car until after you buy it. So this argument about health care and taxes is totally irrelevant to this thread." I decided to respond to that comment, and to then turn my response into a full-blown post. If this was only about the exchange rate difference, that comment would be correct. If you take this debate to be more all-encompassing, the cost of doing business has to be considered as well. Remember that you're not...

Why Canadians, and much of the world, finds Dubya & the American "Right Wing" insane

Courtesy of economist Greg Mankiw's blog is this excerpt from the office of the President of the United States : We believe this is a step toward a government-run system for all Americans. The President has made clear that he believes this is the wrong direction. He prefers a system in which the patient (and consumer) is at the center of decisions about his own health care. Moving toward more government financing, and more people in health plans chosen by the government, means less control for the patient, and more decisions made in Washington and in State capitals. This is bad. My jaw just dropped when I saw that. As would that of anyone who lives in a country like Canada where we're doing rather well for ourselves with a government-funded health care system. Yes, it's not perfect, but I'm happy to know that should I, God forbid, fall ill and lose my job, at least I don't have to worry about finding cash to get treatment for my illness. This is Good, Mr. President...