# Micro Economics 101

W’re still in perhaps the slowest new cycle ever. What is the future of the news media in a world where everything is deterministic and better than expected? Take the 2016 election, for example. We know it’ going to be a toss-up of Walker or Jeb vs. Clinton. The post-2008 economic expansion and epic bull market keeps plugging along, seven years and counting – all thanks to Bernanke and Bush, and it will continue for many years to come. I was right about the web 2.0 valuations going up, was right about Putin not doing anything, right about stocks going up….so many things I was right about, and that’s because I am tuned into the world better than most people. My single bad call was about oil, in which I predicted prices would rebound but they fell another 40%. But that’s just one bad call one out of at least eight good ones.

So anyway, James Altucher has an article The Best Advice Ever To A Teenage Daughter Who Needs To Make Money, describing how young people can make more money as entrepreneurs than doing an ‘allegedly’ low-paying regular job, and I put quotes because James’ logic is questionable.

The relevant quote:

Say for $1000, plus$50 / month maintenance, you’ll make their blog or basic website for them and help them upkeep it. If they require a “shopping cart” then charge them $2500. She frowned a little and said, “They will say No. They don’t need it.” She doesn’t want anyone to say No to her. I can relate to that. I don’t like it when people say No to me either. I said, “Ok, we have about 40 stores on this street. Let’s say only 2 say yes. That’s$2000. It will take you ten hours to do the work.

That’s $200 an hour instead of$8 an hour.

Meanwhile, the guy who works $8/hour keeps earning that over and over, and unless James’ daughter finds news customers, the$8/hour worker will surpass her in a couple months (assuming $8/hour for 5 hours a day for 20 days a month). That’s why going to work is underrated, because you get paid to show up until you quit or get fired. Few opportunities exist like that in life, and in the post-2008 economy where we’re all being forced to become entrepreneurs and American Idol-like contestants in the game of life, such opportunities will continue to become more scarce. People like James are spreading Marxist-inspired BS that workers are being exploited, but if that were true why are so many companies so eager to do away with traditional labor, replacing it with temp work or automation? Surely, if exploitation were so profitable they would want more workers to exploit for great profit, not fewer.$8/hour here, $8 there, and eventually the company goes bankrupt. From an outsider it may seem like a bad deal for the employee to make so little, but it’s much worse for the company, especially when the company has 1000’s of these workers that they cannot, even at$/8 hour, cannot turn a profit from.