Local Knowledge Problem @MaxUtilitarian

The data required for rational economic planning are distributed among individual actors and thus unavoidably exist outside the knowledge of a central authority Joined June 2020

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Local Knowledge Problem @MaxUtilitarian

25 minutes ago

@BladeoftheS The six elements of contract would like a word. legal.thomsonreuters.com/blog/the-essen…

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Local Knowledge Problem @MaxUtilitarian

57 minutes ago

@a_cerbic A PhD in "physical science", no less.

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Local Knowledge Problem @MaxUtilitarian

a hour ago

@a_cerbic @NikolovScience @cohler 🙏

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

@JenniferSey Yeah, but it was all worth it. For Fauci.

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

In the 30% price reduction scenario, wouldn't it be much cheaper to simply give the store's customers a 30% voucher, and let them buy the same goods from existing merchants, without introducing subsidized competitors to privately owned businesses? Viewed this way, aren't subsidized stores politically popular, by economically inefficient at providing consumer relief?

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

@grok @kristenmag Finally, assuming the top 20 most popular products, generating the majority of sales revenue, were cut in price by 30%, ceteris parabus, what would happen to the profitability of the store?

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

Per NGA/FMS Independent Grocers Financial Surveys, the typical total-store gross margin for independent non-specialty grocery stores in NYC is ~27–28%. For those in back, 27-28% of gross sales is what remains after accounting for cost-of-goods-sold. A 30%, across the board, price reduction, ceteris parabus, would result in NEGATIVE 2-3% gross profit. For a $2 million gross sales store, that'd be a loss of $40k to $60k BEFORE operating expenses. Operating expenses for such a store could easily be $500,000 or more, resulting in annual net losses of ~$550,000. They say Socialists wouldn't be Socialists if they understood economics. Even if they did, they'd still be generating half-million dollar losses because they didn't understand P&L's. It's true, Mamdani hasn't said the stores would implement across-the-board 30% price reductions... Only on "core" products. If those products accounted for the majority of sales, the losses would still be substantial.

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

@grok @kristenmag Ok. Now let's consider labor and other expenses for the same store.

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Local Knowledge Problem @MaxUtilitarian

3 hours ago

@grok @kristenmag In the same hypothetical $2 million dollar gross sales store, what are total operating expenses ($ and % of gross sales)?

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Local Knowledge Problem @MaxUtilitarian

4 hours ago

@KeeperofReal16 @cremieuxrecueil Crazy, right?

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Local Knowledge Problem @MaxUtilitarian

4 hours ago

@NPR "virtually zero chance"

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Local Knowledge Problem @MaxUtilitarian

6 hours ago

@Tennee989999 @cafreiman Indeed. And it's not just jobs, products, and taxes. Consumer surplus is the difference between the price a willing buyer WOULD pay and what they ACTUALLY pay. William Nordhaus found 98% of economic surplus accrues to the consumer, not the innovator. 98%.

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Local Knowledge Problem @MaxUtilitarian

9 hours ago

@BobMurphyEcon "Capitalism and communism are the same thing. They are both variants of 19C English liberal economics." Snow and rain are the same thing. They're both variants of precipitation.

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Local Knowledge Problem @MaxUtilitarian

10 hours ago

@WEschenbach My 4th? Those who deeply, viscerally, have experienced all three and, then and there, decided to have nothing more to do with any of them.

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Local Knowledge Problem @MaxUtilitarian

10 hours ago

@Fool_be_Wise @pitdesi And reselling for arbitrage.

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Local Knowledge Problem @MaxUtilitarian

10 hours ago

@a_cerbic @NikolovScience @cohler Thanks, @a_cerbic. I simply couldn't work up the energy to take the time to refute this kook.

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Local Knowledge Problem @MaxUtilitarian

10 hours ago

@TO_727 @guyfelicella @theLLCoolK The bureaucrats enacting these socialist policies couldn't care less. The downstream effects (horrendous) don't show up until the next class of bureaucrats arrive, who promise to "make it better" by doubling down.