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tw · 08-30-2015, 01:23 PM

Simple math demonstrates the concept. One can manipulate a naive public by simply doing what a dirt bag (Carly Fiorina) did in the HP-Compaq merger meeting. Her constant reframe was "If we do A then we will get B". IOW if we are #1 in this industry, then we will be more profitable. That assumes basic concepts taught in high school algebra and drilled into the brains of business school graduates.

Take this simple equation:
Y = M - 1/X

So we assign M=0.65 to define parameters of our economy. When we do X=2 business, then Y is always .15. A simple open loop relationship that always holds true when our economy is 0.65.

Or we can change the rules so that our economy is M=2. Then we do X=2 work, then we get Y=1.5 results. That always holds true. When we do X=3 business, then our corporate results are 1.66667 . Results remain constant whenever we do the same X=??? work.

Now for reality. The world is never an open loop system. The world is a closed loop system. Back to original market parameters: M=0.65
When we do X=2 work, then the Y results are Y=.15, then Y=-6.01666, then Y=.816205, then Y=-.5751826 ....

How can this be? Carly Fiorina told us the result for X=2 work would always be 0.15. But in a closed loop system, we get both profitable (positive) and recessionary (negative) results? Economies are dynamic - closed loop systems. Not the open loop systems preached as soundbytes to our lesser educated citizens.

Welcome to how the world really works. Nothing in an economy is an open loop system; as extremist such as Limbaugh would tell our least educated.

Due to a closed loop system, we have learned that higher wages among the lowest paid workers increases economic activity and lowers costs. If using an open loop "X leads to Y" interpretation, that cannot be true. But the world is a closed loop system - dynamic. Higher wages among bottom tier workers can create lower costs, greater economy activity, and more jobs.

Are you easily brainwashed by extremist politicians who promote open loop thinking. Or are you a moderate (therefore educated) who apreciates how close loop systems work?

08-30-2015, 01:23 PM	#2
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	Simple math demonstrates the concept. One can manipulate a naive public by simply doing what a dirt bag (Carly Fiorina) did in the HP-Compaq merger meeting. Her constant reframe was "If we do A then we will get B". IOW if we are #1 in this industry, then we will be more profitable. That assumes basic concepts taught in high school algebra and drilled into the brains of business school graduates. Take this simple equation: Y = M - 1/X So we assign M=0.65 to define parameters of our economy. When we do X=2 business, then Y is always .15. A simple open loop relationship that always holds true when our economy is 0.65. Or we can change the rules so that our economy is M=2. Then we do X=2 work, then we get Y=1.5 results. That always holds true. When we do X=3 business, then our corporate results are 1.66667 . Results remain constant whenever we do the same X=??? work. Now for reality. The world is never an open loop system. The world is a closed loop system. Back to original market parameters: M=0.65 When we do X=2 work, then the Y results are Y=.15, then Y=-6.01666, then Y=.816205, then Y=-.5751826 .... How can this be? Carly Fiorina told us the result for X=2 work would always be 0.15. But in a closed loop system, we get both profitable (positive) and recessionary (negative) results? Economies are dynamic - closed loop systems. Not the open loop systems preached as soundbytes to our lesser educated citizens. Welcome to how the world really works. Nothing in an economy is an open loop system; as extremist such as Limbaugh would tell our least educated. Due to a closed loop system, we have learned that higher wages among the lowest paid workers increases economic activity and lowers costs. If using an open loop "X leads to Y" interpretation, that cannot be true. But the world is a closed loop system - dynamic. Higher wages among bottom tier workers can create lower costs, greater economy activity, and more jobs. Are you easily brainwashed by extremist politicians who promote open loop thinking. Or are you a moderate (therefore educated) who apreciates how close loop systems work?