#econ 101

first, i want to address the fact that i've barely posted in the past few months. i'm sorry, my schedule was just been so packed with school, i forgot to update this blog! i'll try to be more consistent now.

anyway, girl math isn’t people being bad with money. it’s people being textbook examples of how behavioral economics works in real life.

the whole “if i pay in cash it’s free” or “i returned something for fifty so this sixty dollar thing only cost ten” logic sounds silly, but it’s actually kind of genius. it’s not a financial mistake, it’s data. it’s proof that we don’t spend based on numbers, we spend based on feelings, stories, and tiny mental shortcuts that make sense only to us.

behavioral economics was built on this idea. it says people don’t make perfectly rational choices; they make human ones. we value emotions more than math. we separate money into imaginary categories. we justify, compare, and reframe until a purchase feels right.

girl math is that theory in action. it’s mental accounting when we treat cash like it’s “not real money.” it’s loss aversion when we chase discounts just to avoid feeling like we “missed out.” it’s anchoring when a $300 coat suddenly looks affordable next to a $600 one. it’s instant gratification when future-me gets sacrificed so present-me can feel joy right now.

every behavioral economist should be thanking the internet for girl math. it’s a living case study, wrapped in humor and self-awareness. people are literally turning cognitive biases into memes. and what’s wild is that it proves the science works; the same patterns researchers wrote papers about decades ago are now trending audio on tiktok.

girl math isn’t financial literacy. it’s not trying to teach you how to budget. it’s showing, in real time, how our brains bend logic to protect our emotions. it’s the theory of behavioral economics playing out in public, in a way that’s funny, relatable, and way more honest than any econ textbook.

Stellantis is shutting down, following in the footsteps of GM, Ford, Boeing, John Deere, Case-IH, and Harley-Davidson. So, Why are we going down the road to destruction with our eyes wide open?

Stellantis owns 14 well-known automobile brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks, and Vauxhall and are based in France.

The CEO gave a speech to a stockholders’ meeting in which he said that they were reducing their presence in the US because the business environment is just too unstable and is expected to get worse. He was careful not to say Trump or Republicans but it was very clear who he was saying caused the problems.

UPDATE 1:

A nearly identical speech was given by the American CEO of Lindt USA, the maker of gourmet chocolate, when he announced that Lindt is moving its warehouses and supply chain to Canada.

Apéro Label, an Australian company has stopped all orders to the U.S. to avoid the import taxes

Here Are 202 Companies Hurt by Trump's TariffsThese companies have been forced to take cost‐​cutting measures such as laying off employees or forgoing expansion.

https://www.cato.org/commentary/here-are-202-companies-hurt-trumps-tariffs

Trump’s Tariffs Are Pushing American Companies to LeaveHarley-Davidson’s motto is “All for freedom. Freedom for all.” Today, however, the freedom to trade in America is deteriorating—and because of that, the iconic motorcycle manufacturer will be moving some of its production overseas.

https://www.heritage.org/trade/commentary/trumps-tariffs-are-pushing-american-companies-leave

Part of why we are going down this road is because Trump and the GOP have destroyed the basis of our government in the form of checks and balances. Trump has politicized the court system up to and including the SCOTUS. He has dominated the Republican control of both houses of Congress and he has broken the traditional independence of the Justice department. He has neutered all of the Executive branch which includes all of the law enforcement. All this while he himself is not abiding by the laws, regulations, ethics, morality and oath of office of the office of the president. He is also incredibly ignorant of the diplomacy, science, and economics of governance and seems to be motivated almost entirely by money and ego.

What this means is that he can and has made stunningly bad decisions about economics and international trade relations and diplomacy. He has created a deep instability in the economy that most businesses - especially those large international corporations - see as a serious threat and has motivated them to reduce their financial and market risks in various ways. Some have stopped all projects of expansion or growth. Some have started a process of downsizing. Some have decided to reduce their risks by moving part or all of their operations out of the US - like Stellantis and Landt and others.

It should be noted that most large businesses make major decisions on a very conservative basis. They don’t make snap decisions unless the situation is considered very serious. In terms of corporate level major decisions, 4 to 6 months is a snap decision. One to two years to make such decisions is considered a rush. Most major investment decisions are contemplated, analyzed, planned and scheduled in the 4 to 6 year time frame.

What companies that have made plans to move consider the present economic instability to be very serious. It is a certainty that others will follow soon. IF Trump and the GOP are not reigned in soon, hundreds of large corporations will downsize, move or close. Remember, Trump has been at this for only 6–8 months and has done this much damage. What will he do in the next 3 years?

One other concern is that those businesses that move out or close are not likely to come back quickly. They see the US as unstable and a government that cannot be trusted. They also see that 77 million US voters put Trump into power which means that even if Trump goes away, the people who put him and the GOP into power will still be here and might do it again. For that reason, these corporations will be very slow to return, if ever. It is for these reasons that our former allies and trading partners will also be be very slow, if ever, to return to the pre-Trump style and level of international trade agreements.

Into this situation, you have to keep in mind that China, BRICS, the EU and other trade-agreement groups are highly motivated to exploit our political crisis and our economic downfall. By various means, they will overtly leverage what they can to exacerbate the damage to our economy and sphere of influence. This will delay, at best, or stop our recovery from most of the damage Trump has caused.

"Research shows that minimum wage earners very rarely purchase Louis Vuitton bags.

"We can therefore conclude that minimum wage earners don't want Louis Vuitton bags."

That's an analogy, an illustration of a general pattern of thinking that goes, "poor people don't do X, therefore poor people do not want do X" and runs right along with its cousin, "Poor people do X. Therefore, that shows that poor people want to do X"

Both forms of reasoning are obviously insane in ways that should be obvious by the time you're in High School, but you hear them all the time from people with, like, fancy degrees and jobs as Economists.

Guest Sterlin Lujan nails it: human capital flight is real. Why should the brightest minds stay in a country that cages innovation with rigid, unreasonable boundaries? If freedom and opportunity aren’t here, they’ll go elsewhere.

Apple Podcast: https://podcasts.apple.com/us/podcast/guest-sterlin-lujan-stablecoins-network-states-the/id1439014279?i=1000722501817

Spotify: https://open.spotify.com/episode/1Nc0Znyo7SrY9GTe5fxj0r

Podbean: https://thefreethoughtproject.podbean.com/e/privacy-or-control-sterling-lujan-on-stablecoins-surveillance-and-the-fight-for-free-crypto/

he is not their boss. no president of the “boss” of the fed and the fed is never “defying” any president because the president is not in charge of the fed. just like the president is not in charge of everything, #bring back separation of powers.

the federal reserve is designed to be independent from political pressure so it can make decisions based on data, not whoever is in office. it is the core foundation of the fed.

like, this is econ 101 (literally macro 101 to be specific), the fed’s number one job is to keep inflation low and steady followed by the managing the employment rate and moderating federal interest rates. there is nothing about getting involved in politics and bowing to the president.