“Why buy the cow?” An overview of economic systems

This pre-election quick course in economics showed up recently in my e-mail. My high-school history teacher actually used the “cow” example to explain certain socio-economic systems, but this list has had a few additions since the late 1970’s.

SOCIALISM
You have 2 cows.
You give one to your neighbor.
(“From each according to ability; to each according to need.” It’s actually not a bad concept of community, in my opinion – it’s not unlike the way the early Christians operated, according to the Acts of the Apostles. The biggest problem with it is that self-interest can’t really be drummed out of people, and it seems to me that’s why it doesn’t tend to work on a large scale or over an extended period of time. Shiona at Future Imperfect articulates on the topic quite well.)

COMMUNISM
You have 2 cows.
The State takes both and gives you some milk.

FASCISM
You have 2 cows.
The State takes both and sells you some milk.
 
NAZISM
You have 2 cows.
The State takes both and shoots you.
 
BUREAUCRATISM
You have 2 cows.
The State takes both, shoots one, milks the other, and then throws the milk away…

TRADITIONAL CAPITALISM
You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy grows.
You sell them and retire on the income.
 
SURREALISM
You have two giraffes.
The government requires you to take harmonica lessons
(OK, this isn’t really an “economic” system – it’s just funny.)

AN AMERICAN CORPORATION
You have two cows.
You sell one, and force the other to produce the milk of four cows.
Later, you hire a consultant to analyze why the cow has dropped dead.
 
VENTURE CAPITALISM
You have two cows.
You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows.
The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.

The annual report says the company owns eight cows, with an option on one more.
You sell one cow to buy a new president of the United States, leaving you with nine cows. No balance sheet provided with the release.
The public then buys your bull.
 
A FRENCH CORPORATION
You have two cows.
You go on strike, organize a riot, and block the roads, because you want three cows.
 
A JAPANESE CORPORATION
You have two cows.
You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk. You then create a clever cow cartoon image called ‘Cowkimon’ and market it worldwide.
 
A GERMAN CORPORATION
You have two cows.
You re-engineer them so they live for 100 years, eat once a month, and milk themselves.
 
AN ITALIAN CORPORATION
You have two cows, but you don’t know where they are.
You decide to have lunch.
 
A RUSSIAN CORPORATION (Post-Communism)
You have two cows.
You count them and learn you have five cows.
You count them again and learn you have 42 cows.
You count them again and learn you have 2 cows.
You stop counting cows and open another bottle of vodka.
 
A SWISS CORPORATION
You have 5000 cows. None of them belong to you.
You charge the owners for storing them.
 
A CHINESE CORPORATION
You have two cows.
You have 300 people milking them.
You claim that you have full employment, and high bovine productivity.
You arrest the newsman who reported the real situation.
 
AN INDIAN CORPORATION
You have two cows.
You worship them.
 
A BRITISH CORPORATION
You have two cows.
Both are mad.
 
AN IRAQI CORPORATION
Everyone thinks you have lots of cows.
You tell them that you have none.
No one believes you, so they bomb you and invade your country.
You still have no cows, but at least now you are part of a Democracy….

AN AUSTRALIAN CORPORATION
You have two cows.
Business seems pretty good.
You close the office and go for a few beers to celebrate.
 
A NEW ZEALAND CORPORATION
You have two cows. 

The one on the left looks very attractive.

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