Danny Mendlow's Blog

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An idea

You know those economic models people are always talking about? The ones no average person ever sees, or knows anything about, but that are always dragged out to defend the actions of the marketplace. “Well, you know, every economic model predicts growth in this sector and blah blah blah.”

I have an idea for a new kind of economic model.

How about a model that does not allow concentrated wealth at the top, and poverty at the bottom? How about a model for a real, honest, middle class. I don’t know, it seems very basic to me… if people make enough money to afford a house, car, and to buy things, then they will. That’s what people do with money. That’s what a healthy economy is. It isn’t a huge majority of people getting minimum wage or barely more than it, having to borrow money from creditors with extortionist interest rates ensuring they can never pay them back, and thus having no money to spend. That’s a shitty economic model.

I say we develop an algorithm that does redistribute wealth. Not of individuals, but of corporations. Multi-National Corporations are incredibly efficient machines, and actually could be very useful models for the future. The trouble is, they do what they do at the expense of the working class. They do what they do by exploiting impoverished nations. They do what they do by paying their CEO’s billions, their shareholders millions, and their workers nothing. This is bullshit. The economic model we need is one that ensures if a company like Wal Mart or McDonalds or Starbucks is going to monopolize the landscape, going to dominate the marketplace, going to be employing such a huge percentage of the country … then they can damn well stop paying their employees minimum wage. And don’t give me the nonsense about how if they paid their employees a decent salary they couldn’t offer such low prices. Two things, one, if their employees were paid a decent salary, they could afford to pay slightly higher prices. Something Henry Ford understood:

“There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.” – Henry Ford

He also hated Jews, but that’s not the point.  The point is that the modern corporation has forgotten about paying the highest wages possible… and the best quality goods possible.  Planned obsolescence rules the marketplace, and instead these companies spend billions and trillions on bureaucratic levels of customer service, complaint departments, extra cost warranties and convincing us that it’s okay when our brand new goods systematically break down the day after the warranty runs out.  This is what happens when we stop demanding what we need and want, and start accepting what we’re told we should be happy to live with.

Secondly, why can these CEO’s and suits afford to write themselves billion dollar cheques with their ludicrous profits, and open new stores every five minutes, and not pay their workers enough to live on?  They can, they just don’t want to.  They live in a different world.  A world of graphs and spreadsheets and hypothetical numbers.  Not reality.  This all goes back to the obnoxious quote thrown around during the last presidential election “Wall Street Vs. Main Street.”

Unfortunately this turned out to be nothing but meaningless political rhetoric (like there’s any other kind) but the substance of the quote is true.  Wall Street doesn’t exist.  Main street does.  There’s no comparison. Wall street, the stock market, investors, investments, portfolios, these are a tiny, inconsequential fraction of the human beings who exist.  They are gamblers.  Nothing more.  Nothing less.  Their gambling addiction does not allow them the right to fuck the rest of society, and in turn the world, in the ass.  Boo hoo, you don’t get to gamble the way you like to.  Wah, wah, you want to make more money.  Cry me a fucking river.  Sociopaths.  Every last one of them.  And there’s no reason for the average, working human being (you know… pretty much all of us), to allow their present and future to be destroyed so some spoiled, stuff shirted gamblers can toss the dice at will.

This goes beyond Wall Street too.  Investors in general are the problem.  Investors and Creditors are nothing more than Lords and Money Lenders.  They own all the land.  They control all the money, and have the general populace in their back pocket.  I recently read a number of articles on the Toronto Condo Market, which clearly outlines the issue I am talking about.  Basically, over 60% of condo buyers in Toronto are investors.  Not people who ever take up residence in the home.  The investors are now upset because the rent isn’t rising steadily like they want it to so they can cash in on their investment.  Well guess what assholes, that’s because REAL PEOPLE can’t afford to pay $2000-$5000 a month to live in what is basically a glorified apartment suite with nicer furniture.  Same goes for the Vancouver housing market.  No one with a normal job, even a very well paying one, could possibly afford a house in this city.  And if you look inside the houses in both of these cities, you’ll often find plenty of residents renting out individual rooms, for astronomical prices.  Yet these are considered ‘healthy’ economies.  They are toxic, artificially inflated, and horrible economies.  Time will reveal this reality.  When will these market obsessed nitwits realize they are not above reality?  Their economic models are false.  They have been proven false across the globe.  And yet, nobody seems to learn the underlying lesson.

Stop fucking over real people, so a handful of sociopathic assholes can get a quick fix.

You know, just like Jesus used to say.


May 22, 2011 - Posted by | Uncategorized


  1. Tripped over here from Reddit, interesting to see your blog. I actually have hope, slight, but some hope, for humanity, it just might be waking up. Need to add a holiday to my February calender now, nice meme. Good Luck.

    Comment by Another internet ditizen | May 24, 2011 | Reply

  2. Hey Danny. Was referred to your blog from another reddit user. As much as you might feel it’s ridiculous and unreasonable to pay $2k-$5k rents, please look at other financial capitals of the world for cost of living equivalents (NYC, London, Paris, Madrid, Moscow, Tokyo, Dubai, etc). The fact is that Torontonians are doing fine. The fact that investors are not getting the massive returns they were expecting seems to indicate that the market forces are acting appropriately. It means these investors will have to hold properties for longer, it means looking for higher quality, longer term tenants, it means rents and prices might come down or moderate as wages catch up.

    Canadians might have to live a bit closer together in Toronto as well. Density needs to increase, mass transit needs to improve, and citizens need to get comfortable sharing a two bed condo with a roommate until we settle down with a partner.

    Seriously though, suck it up a bit. You live in a world class city. If you want space and cheap rent move to Winnipeg. 🙂 There’s only one planet earth and one Toronto. We gotta share it.

    Comment by Tyler | May 24, 2011 | Reply

    • OK, Tyler, so when is the average wage in Toronto going to match that of Tokyo or London or NYC?

      I won’t complain about $2K rent when I’m pulling in $10K a month.

      Fact of the matter is, cost of housing has gone up much more than wages… and continues to do so!

      Comment by Eric | May 30, 2011 | Reply

      • I went to a presentation for a new condo development. Most of the units in the building could be financed with a 60K home income. Two bedrooms for 250K-ish. My house near the junction with 3 bedrooms and a large backyard was under 300K a couple years ago.

        I would love to move to roncesvalles or baby point, but I don’t have 700K to spend on a house, so I’m not going to move there.

        When I have a kid and want a better school district, I’ll probably move out of the city for a cheaper place.

        The point is, no one has an obligation to provide me with the type of residence I want for a price I can afford. That’s what a free market is. If people stop renting out these condos investors will realize it’s not worth it, sell them for a loss, and things will become more affordable.

        Comment by Bill | May 30, 2011

      • Hi Eric,
        Good question. Average wage in Toronto seems to be about $64k as per http://www.labourcouncil.ca/livingwagefull.pdf That’s not bad actually. Average wage in London is £29k as per http://en.wikipedia.org/wiki/Income_in_the_United_Kingdomwhich is actually less than Toronto. How does that work? Because people in London are accustomed to living in smaller spaces, taking public transit and living within their means.

        Comment by Tyler | May 31, 2011

  3. Hey Tyler

    I think you missed the main point of his post.

    What he’s trying to point out is that since there’s only one world we all gotta share, it would be advisable to stop the investors/speculators/entitled-property-owners from pissing off everyone else with their shameless greed so we go french revolution on their asses and start chopping off some heads. Just because neoliberal capitalism has spread to every corner of the globe doesn’t make it an economic model worth tolerating.

    Telling poor people to “suck it up” is what Marie Antoinette did, mm’kay?

    Comment by Jeremy | May 29, 2011 | Reply

    • How is neoliberal capitalism not a model worth tolerating? You have only 80-100 years to live. It’s not going away any time soon and, as you pointed out, it’s spread to every corner of the globe. What are you going to do if you don’t deal with it in a useful way? Obstinate protest is not very useful to you nor to the rest of us.

      I’m not saying it shouldn’t be fixed and that people shouldn’t be trying to find better ways to live, but the basic model of a market economy has certainly proven to be the way humans structure their ability to distribute resources amongst society. ‘Been doing it for only 4000 years or so now (not everywhere of course)…

      Comment by Tyler | May 31, 2011 | Reply

  4. We need to get rid of money altogether and work towards a resource based economy. Our current model is completely unsustainable. Things will change one way or another. I do believe people are waking up but there are hard times ahead. That will be the only way we can evolve into what we have the ability to become.

    Comment by MKW | May 29, 2011 | Reply

    • Now that’s an interesting proposition. Has it been discussed elsewhere?

      Comment by Tyler | May 31, 2011 | Reply

  5. If only we had a standard unit of measure for allocating scarce resources based on a return for an investment of labour and/or capital. We could call it a “quatloo”.

    Comment by Nicholas Packwood | May 29, 2011 | Reply

  6. Hey Danny, I also hopped over here from Reddit. Unfortunately, the truth is that the sociopaths, politicians, gamblers at the top KNOW that this is all destined to fall apart. They just want to get theirs before it does. They don’t do it for the good of their own kind. They won’t stop just because there is a finite limit to the pillaging. They each feel they are worthy enough to get in, take all they can, and get out before this house of cards crumbles. Unfortunately, there is no better alternative for society or the economy yet. As long as corruption exists, we have to play ball with these assholes.
    Good rant though!

    Comment by Frustrated Toronto Condo Buyer | May 29, 2011 | Reply

    • A better alternative, HA!

      They think they can hunker down in their gated communities and won’t have to deal with the mass of humanity that will climb over their gates to get at them, like in the french revolution. Oh wait, they are providing basic trinkets and baubles that distract the population from their misery? So when we finally have used up all the resources on this planet, or we get wiped out when the next pinball from space hits us and we go the way of the dinosaurs.

      Well, in that case we’re fucked.

      -said while sipping on my Margarita and munching on Nachos in my gated community, while surfing the internet and watching sports on 500 channels of TV!

      Comment by Another internet ditizen | May 31, 2011 | Reply

  7. HEY!

    Aside from kinda missing the point of the article, don’t rag on Winnipeg. Cheap rent, lots of space, nice people, parks, a small but lively club scene, great restaurants; you make it sound like we’re some ass-backwards hick town.

    Comment by Dane | May 30, 2011 | Reply

    • Winnipeg is nice, if you’re looking for a ass-backwards hick town. (just messin’ with ya, it’s fine just certainly not for me)

      Comment by Tyler | May 31, 2011 | Reply

  8. Wow have you ever struck a chord with me! I have been sickened by the buy-to-let/rent craze for ages.
    It’s greed pure and simple. No one should own another house or apartment just to get rich off renting to poor people. This is sick.
    It’s ruined Berlin. Germans never bought. They didn’t need to. That was a city if rents that matched salaries until American, Irish, and British hipsters came in and exploited this fact. Now Germans cant afford to rent in their own city and only stupid tourists can. Half the flats are empty cause the hipsters ask for rents that only other hipsters can afford. It’s fucked.
    And it’s repeated the world over.
    And Tyler, eat a fuckIng big dick. It’s idiots like you that keep this fucked up greed machine running.

    Comment by Lolly | May 30, 2011 | Reply

    • Like the reappropriation from WW1 and Hitler didn’t ruin Berlin already.

      Comment by LoL | May 30, 2011 | Reply

    • Lolly – eat a fucking dick. You don’t know me. It’s a shame you ruined the point of your whole post with that ignorant and baseless ad hominem attack.

      Comment by Tyler | May 31, 2011 | Reply

    • Actually it’s not pure greed and is not unreasonable, and market forces are changing the costs. The US is going into a double dip housing drop RIGHT NOW, because they can’t sustain the prices that the investors are paying. The free market does work, as long as they aren’t able to lobby the government. Transparency to prevent corruption is the KEY part.

      The real problem is the bread and circuses, and the fact the mindless consumers aren’t informed or educated to think critically, and the wealthy LIKE that. Large banks have fucked the world, use a credit union!

      I’m paying 1/3 for my mortgage that the renters are paying in my city (for the same house), but I’ve always lived within my means, and because I paid attention, I’m retired @ 44. But I’m not rich, I didn’t ruthlessly exploit other people.

      Comment by Another internet ditizen | May 31, 2011 | Reply

  9. Hey, Redditors,
    I came here from Reddit, so I can go back to Reddit and upvote to show another redditor that I read it, and keep on Redditing.

    Nice article I hope it goes to the top on Reddit.

    A Reddit User who Reddits.

    Comment by Bacon | May 30, 2011 | Reply

    • hmmmm, Bacon.

      Comment by Another internet ditizen | May 31, 2011 | Reply

  10. To all the haters: I was going to post this to Eric, above, but figured it kind of applies more generally.

    My whole point was that Canadians in general are accustomed to living an a half acre of land and driving a bazillion miles to work and back, just to be able to pay for a nice car and the house that they don’t get to enjoy because they spend 2 hours a day commuting. It’s a lifestyle problem. You know?

    The average person can sensibly justify spending 35% of their gross salary on housing expenses. Even more (45%) without debts like student loans and if they’re single. $2k rent is what I’m paying and I make about $65k. It works out. I just can’t validate these concerns when we’re living in a world that just experienced the worst financial crisis in 75 years. What would our grandparents say about this sense of entitlement?

    Comment by Tyler | May 31, 2011 | Reply

    • Tyler, there will always be haters, you do know that 50% of the population is below average intelligence, Right? (messing wit cha)

      Our grandparents, who only wanted the best for their children; raised entitled, spoiled consumers who used the easy petroleum to fuel their greedy desires, but their grand and great grandchildren are waking up – using the Internet to communicate and actually learn critical thinking skills and knowledge, instead of mindlessly listening like wage-slaves, that the education system and 3 TV news channels (owned by the wealthy in charge) has propagated. The Arab spring revolution is just a small example.

      So I have hope, very pessimistic, but hope.

      Comment by Another internet ditizen | May 31, 2011 | Reply

    • “I make about 65K”

      Then you have no idea what 50% of the population is dealing with trying to live off minimum wage or barely above it.

      Comment by dannymendlow | June 8, 2011 | Reply

  11. The system could work if we made the rule that a business would have to share its books publicly if it wanted to trade. That way the public would know who was getting a $5 product for two cents per unit from China, for example, and could spend accordingly. The internet has finally made this possible.

    Comment by Pstonie | June 8, 2011 | Reply

    • Great idea. We have a chance for transparency if we only demand it with the tools at hand. There’s no need to believe pathological liars at their word, when it is common knowledge their only concern is quarterly profits.

      Comment by dannymendlow | June 8, 2011 | Reply

      • So what about small businesses? We open the books of every small to large PRIVATE company out there? THIS is a reasonable solution?

        Some people start businesses because they’re passionate about what they do. You think the only thing the owners of Lululemon care about is quarterly profit? It’s also about sustainability, leaving the world a better place and having a positive impact on the lives of your employees. Perhaps you’re insulated from these types of business owners but I know many of them.

        Public companies already have to open their books. But you knew that right???

        And Danny, technically only 5% of corporate executives are clinically psychopathic. It could be a lot worse.

        Comment by Tyler | June 8, 2011

      • http://en.wikipedia.org/wiki/Triple_bottom_line about companies that hold other values beyond profits.

        Comment by Tyler | June 8, 2011

      • “It’s also about sustainability, leaving the world a better place and having a positive impact on the lives of your employees.”

        That sounds like a bank advert.

        Public companies open their books? To whom, The SEC? Fat load of good that’s done us. I’m talking systemic, every cent accounted for, yes even the small companies. They could teach the large ones how not to be bastards.

        We could also abolish patents (“patents for medical advancement” is my favourite oxymoron). If it’s really about leaving the world a better place and not about profits then what’s the problem?

        Comment by Pstonie | June 9, 2011

      • Pstonie, obviously you’ve never managed to find any work you’re passionate about, with a company that treats you with respect.

        So what are you doing about it besides bitching on comedians’ blogs? Why don’t you start a business and see what it’s like? It’s much harder than getting a job. It sounds like you’re promoting communism, or some extreme form of socialism. I’m not even sure what you’re really talking about except that you feel like those of us that work our asses off to make a life for ourselves would have everything whipped out from underneath us in order to satisfy your frustrations with the system.

        Why not consider systematic, policy-based reforms that you could get broad-based support for from the public. Oh wait, you might have to actually *think* about it.

        Comment by Tyler | June 9, 2011

      • “obviously you’ve never managed to find any work you’re passionate about, with a company that treats you with respect”

        No, most of us haven’t. Most of us get kicked around by the majority of companies that don’t treat you with respect and we do what we have to for survival. Not everyone gets to make good money testing out new porn star vaginas. That doesn’t make us lesser people than you.

        “So what are you doing about it besides bitching on comedians’ blogs?”

        Living his life presumably, and constantly getting shit on by people like you who think you are superior to him because you have a cushy job and financial security. Congratulations, you have money… this does not make you superior to him. Or me. Or anyone. WTF does your salary and occupation have to do with who you are as a person and your value to this world? Some cocksucker loan shark slanging derivatives is better than me because he wears a suit? Your view of the world is so childish and one dimensional it’s actually frightening.

        “It sounds like you’re promoting communism, or some extreme form of socialism. ”

        Wow, how original. “HE’S A COMMIE! GET HIM!” Thanks McCarthy, but the 50’s are over.

        “you feel like those of us that work our asses off to make a life for ourselves would have everything whipped out from underneath us in order to satisfy your frustrations with the system.”

        You don’t think we lower class scum, as you obviously see us, don’t work our asses off? Go fuck yourself. Try working a job, or two, or three, that hammers you into the ground physically, that treats you as a bag of flesh with no intelligence or ability to contribute anything meaningful to the world, get paid nothing for it, shit on by everyone at work and in the rest of the world because you’re just a fucking poor piece of trash, and then come back here and talk all your meaningless, empty rhetoric about how grand everything is. Oh, and while you’re at it go and start up that business too. The fact that you think it’s that easy to just up and start a business for the hell of it shows that you don’t live in the real world.

        Dude, you don’t get it. You never will. Congratulations, you have money. We’re all really happy for you. Keep jerking off to your mirror and thinking you are better than others. You’re not. I’ll keep fighting for the little guy.

        And P.S.

        What are YOU doing besides bitching on some comedians’ blogs?

        Comment by dannymendlow | June 10, 2011

      • I must decline your offer to start my own business. You see (or maybe you don’t), banks control who can start businesses and who can’t, and by saying that whatever you do *must* be for profit, they also determine how it is run. If I ever think of something that helps others and is profitable, I’ll sure give it a shot, but so far the golden rule of business today–take the most money for the cheapest possible product–isn’t so good for the rest of humanity.

        Communism actually seems like a more efficient form of stealing than capitalism. Instead of diversifying brand names for the illusion of competition, people simply give you their labour because they’re brainwashed. Though when I put it like that, it doesn’t seem so different from capitalism any more.

        If you’ve found it easy to make money, you don’t get what we’re getting at, though. I know I had the opportunity, I could’ve shallowed my ideas of right and wrong (and a lot else) and “worked my ass off” to help any number of unscrupulous organisations steal from it’s customers more efficiently, but I can’t. The bank’s idea of wealth is just that to me, an idea, and ideas not based on reality don’t do too well once you stop believing in them. If you’re happy with what you have and the system that awarded it to you, great. But know this. There are many more of us than there are of you.

        Comment by Pstonie | June 10, 2011

  12. “Lululemon… It’s also about sustainability, leaving the world a better place and having a positive impact on the lives of your employees.”

    I’m the comedian here Tyler, leave the jokes to me.

    Comment by Anonymous | June 9, 2011 | Reply

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