SoCS — Guns or Butter

When I saw that today’s Stream of Consciousness Saturday prompt from Linda G. Hill was to find a word that starts with “eco” or has “eco” in it and use it in a post, I immediately thought of my Amazon Echo. But then I realized that “echo” starts with “ech” and not “eco.” So it was back to the drawing board.

Then I remembered that I was an economics major in undergraduate school. Duh! You know, supply and demand, guns or butter, and stuff like that. What I liked most about economics courses in college were all the charts and graphs used to illustrate economics principles.

I love charts and graphs! Like the one below for supply and demand, which is an economic model of price determination in a competitive market.

1BF7503A-731B-4529-9FFC-AE07D7312E96Basically, the price of a good or service goes up when demand is high and supply is low and goes down when supply is high and demand is low. Makes sense, right?

And then there is the guns or butter model, which demonstrates the relationship between a nation’s investment in defense and civilian goods. It may buy either guns (invest in defense/military) or butter (invest in production of consumer goods), or a combination of both.

73B869BF-3878-40A0-B370-F558BA73DC8CThe more a country spends on its military, the less it has available to spend on goods and services for its citizens, and vice versa.

Okay, I know that you are totally bored by this discussion of basic economic theories. But don’t blame me. Blame Linda for this prompt. I’m sure my post about the Amazon Echo would have been considerably more fascinating.

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14 thoughts on “SoCS — Guns or Butter

  1. newepicauthor January 6, 2018 / 7:24 am

    Your post was not in the least bit boring, it was well written and very informative, but I never liked economics, maybe it would have been better if you were my teacher.

    Liked by 1 person

    • Fandango January 6, 2018 / 8:08 am

      Well thank you, Jim, but I would make an awful teacher. I don’t have the patience.

      Liked by 2 people

  2. Sight11 January 6, 2018 / 7:33 am

    Woo-hoo! Marginal Equilibrium please or Credit Creation.

    Liked by 1 person

  3. joey January 6, 2018 / 11:56 am

    Well done! I vaguely remember the lesson, but you taught it better in fewer words than I recall! 🙂

    Liked by 1 person

  4. Susanne January 6, 2018 / 12:13 pm

    I’d never heard of the guns/butter model but it makes sense. And for the record: Give me more butter please.

    Liked by 1 person

  5. Marilyn Armstrong January 6, 2018 / 5:39 pm

    Try ecology next time. Or a little more explanation of guns and butter because that was kind of interesting.

    Liked by 1 person

    • Fandango January 6, 2018 / 6:34 pm

      Yay! I thought it was going to bore people who read the post. “Interesting” is a reaction I didn’t expect.

      Like

  6. Eden January 7, 2018 / 2:36 pm

    Smear on the butter please… Of course, if you’re an arms dealer or manufacturer, I imagine you butter depends heavily on the number of guns needed.

    Liked by 1 person

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