Thursday, October 27, 2016

Mulla and capitalism

One day Mulla and his child was on a boat crossing a river.   Child was preparing for her economic exam and asked Mulla " papa what is capitalism?"

" that is simple. consider this boat as an example. Instead of paying for ticket, we will convince the boat man that selling this boat to us is more profitable and risk free than owning it. For that we will pay him in instalments and for that instalments we will convince all these travellers to invest additional money  along with their ticket cost,  so that they   will be given profit margin from their own tickets.

Effectively
We will travel for free ,
We will own this boat
We will  turn the boat man from owner to our employee  and he will continue to work as he was before to earn his salary we  will decide
And travellers will not only pay for their ticket but also invest additional amount to fund our purchase of this boat to that they will be given a share of profit from their own tickets they purchase.

This is called capitalism"  explained Mulla