Now, Look Here (Publicistics) — Part Three

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Status: Finished  |  Genre: Non-Fiction  |  House: We, The Silly People

Chapter 8 (v.1) - The extremal solution

Submitted: May 06, 2018

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Submitted: May 06, 2018




Because for every Bulgarian has become obvious, that thanks to the decision of Mr. Berov to set the price of sunflower oil to approximately 40 lv, in order to avoid that it was sold by 60 lv, it is now nowhere to be found even for 80 lv, and while the crisis is solved (via importation or in other way) its price, without whatever compensation for the citizens, will reach, most probably, 100 lv (due to the fact that this oil is product of relatively long endurance and every Bulgarian, who succeeds, can quietly hoard for an year or two ahead), it is clear that it is not necessary to discuss the 'competency' of the decision. Here we will try to prove something stronger, namely, that every other decision would have been better, in the sense that it would have allowed to an averagely taken Bulgarian to buy enough sunflower oil for personal consumption on prices lower that the current 80 lv for a liter. In mathematical language this means that the decision in question has extremal character.
Firstly let us convince ourselves that we have here local maximum of silliness (resp. minimum of reasonability) for the decision. We use the well known from the secondary school course method, moving a little in both directions of the price of 40 lv, in order to see that this will lead to better decision. And really, if the price was, say, 50 lv, what is near to the normal market price, this could have forced some new and striving merchants to sell this oil even with a slight loss, in order to attract buyers, and to write the expenses, so to say, for advertising. On the other hand, if Mr. Berov has said that the price of this oil must be 30 lv a liter (and it will be sold for as much), then every Bulgarian, from the pre-school age and above, would have simply laughed at this and would have given no credit to such manipulation, and in this case this decision would have not been accepted, so that there is no need to observe it (this is equivalent to restriction from below of the price, so that the local extremum will be reached at the lower border of reasonability of 40 lv). So that, if the intervention is only in regard of the price, then 40 levs give the silliest decision.
Now let us see whether there is not another way of influence. Here we can also move, either in direction of strengthening of market mechanisms, even to such extent that not at all to intervene in them, or to their lessening. In the case of increasing of market mechanisms this means weakening of the control on prices of this oil, as foodstuff of basic necessity, and it is well known that when there are no bans there is also no interest in trespassing them, i.e. when the speculation with it will not be unlawful, then it will become uninteresting and low profitable (in near future) and this variant will reduce to the next. And this next variant in this direction is exactly total non-interference by the Government, what, by prices on the international market of 600 US$ for a ton, and prices on the internal market in the majority of Western countries of about one US dollar a liter, as also by price of the dollar in Bulgaria in this period of time of 52-55 lv, would have led to some initial jumping of the price of oil to about 60 lv and subsequent setting on 50-55 lv, a thing which already has begun to happen, if there was not this decision of Mr. Berov.
The last variant of weakening of market mechanisms means some way of centralized control of the amount of bought sunflower oil by everyone, i.e. a variant of introducing of a system with coupons, what would have been worse than the non-intervention, but, despite of this, if it was conducted properly, would have led to better decision than the current one (yet this, too, has not been done). With this we consider proved, assuming continuity of the decisions in a closed interval (here, of silliness), that the decision of Mr. Berov is the most silly one from all possible.
Still, the situation is not so despairingly bad for Mr. Berov, for the reason that there exists also the principle ... of limitlessness of human silliness (or stupidity), which states that there are no limits for the human stupidity (on the contrary with the intellect)! Hence, for each stupid thing can be found another stupid thing that is a little bigger then our (similarly to the natural numbers, which are unlimited). If we accept that this principle is correct then the decision in question is not extremal, because there is no maximum for the stupidity (or the interval is not limited), what is a significant consolation against his slanderers.

1994 ?







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