Black People Politics : Why we don't have power

[umbrarchist]

um, not all black people drive cars...

Not all Black people buy apartment buildings. Do more Black people buy cars than apartment buildings?

I am sure that YOU do not know any Black people who drive cars.

 

[jamesfrmphilly]

Not all Black people buy apartment buildings. Do more Black people buy cars than apartment buildings?

I am sure that YOU do not know any Black people who drive cars.

in other words, when presented with even the slightest challenge to your theory you can not defend it.....

 

[frankster]

UmbrAcounting 101

You will have to forgive the first picture. I could have made a better picture with the photo editor on my phone but it would take days to figure out the app.

<Economic Unit>
View attachment 33624

This is a graphic of an Economic Unit. This is not the standard terminology in accounting or economics but I tend to think of things my way. The Basic Accounting Equation is pretty standard though. I had an accounting book that sold for $100 that did not define the equation until page 48. A much cheaper book had it on page 6. I mention this because Accounting is glorified and portrayed as complicated to intimidate people and make them pay a lot of MONEY for courses in accounting. Lots of people get emotional about MONEY and that is one of the problems in the Economic Power Game.



So the equation is:

Assets - Liabilities = Net Worth

or:

Assets - Liabilities = Equity

Equity has become more commonly used over the last 20 or so years. I will be old fashioned.

What of Credit and Cash flow are these assets or liabilities

An Asset is something of value. An Automobile or a diamond ring qualify. They are very different things but how are their values determined? Somewhere there is a car worth $50,000 and somewhere there is a diamond ring worth $50,000.

A liability is a debt that has to be paid. Like suppose you borrow $50,000 and you get to decide whether to buy the car or diamond ring. Liabilities usually means coming up with a fixed amount of money, usually every month.

So is the car a liability or asset....especially if using it as a uber and a family transport?

$50,000 at 10% interest over 7 years would mean paying $830 every month and ultimately cost $70,000. That means paying $20,000 in interest. And that is only at 10% interest. Some credit cards are 25% interest. So you see there is a certain liability to Liabilities. I guess that is why they are called that.

So the car is a liability...is this still true when it is bringing income?

So if the car is worth $50K and the Liability is $50K, when you subtract 50K from 50K you get a Big Fat ZERO.

Not possible....even if traded as junk metal or parts it has residual value

That is the Net Worth for this scenario, but, there is always a BUT. Cars are complicated machines and stuff happens to them over time in normal use. The Red Arrow pointing down with the "dep" is Depreciation. So by the time 7 years have gone by the car might have 105,000 miles on the odometer.

Yes ....everthing depreciates - some more than others....depending on prevailing market

Is it still worth $50,000? Let us assume that 50% of the value is gone and the machine is then worth $25,000. So you paid $20,000 in interest and lost $25,000 in depreciation to end up with a $25,000 car. But you got to drive for 7 years in a car that was originally worth $50,000.

That sounds good

Should a buyer think about the Interest and Depreciation before making the purchase? In other words, "Do the Accounting!"

Yes.....but where is the Power - is it in negoitating a lower price

Of course there is the alternative scenario.
Buy a $25,000 car and a $25,000 diamond ring.
The car would be worth $12,500 but how much would the ring be worth? For the sake of argument say it held its value it would be worth twice as much as the car. Of course you cannot drive to work in a diamond ring.

So now you buying a used car.....maintenance cost may go up and reliability may go down....

Now a normal accounting course would talk about debits and credits for weeks before they got to Depreciation. It was beyond page 150 in that $100 accounting book I mentioned.

The green arrows with "inc" and "exp" are of course Income and Expenses. For most people that income means a JOB. Those expenses mean, food, rent or mortgage, electric bill, gas bill, car payment, gas for the car, etc., etc.

TRue

<Panasonic flat screen>
View attachment 33623

But lots of stuff depreciates though. I saw this in an alley and looked up the original price on the Internet. At $2500 it depreciated at $192 per year over 13 years.

If purchased with a credit card:

Paying $75/MO at 18%

It will take 3 years and 11 months to payoff the balance. The total interest is $991.66.

Paying $200/MO at 18%

It will take 1 year and 2 months to payoff the balance. The total interest is $289.24.


To be continued.

So they secret to power is in acquiring and accumulating money primarily through Frugality and thrifitiness.

 

[umbrarchist]

in other words, when presented with even the slightest challenge to your theory you can not defend it.....

ROFLMBAO

That was a challenge? I thought it barely qualified as a joke. I presented evidence of a flat screen TV depreciating in the post. What did that have to do with Black people driving? It is not just cars that depreciate. Refrigerators, air conditioners, microwave ovens.

Have you ever replaced a magnetron in a microwave oven? I have!

We live in a technolgical society where everything wears out over time and must be repaired or replaced.

Depreciation is inescapable and it is economically significant, except to professional economists.

 

[jamesfrmphilly]

ROFLMBAO

That was a challenge? I thought it barely qualified as a joke. I presented evidence of a flat screen TV depreciating in the post. What did that have to do with Black people driving? It is not just cars that depreciate. Refrigerators, air conditioners, microwave ovens.

Have you ever replaced a magnetron in a microwave oven? I have!

We live in a technolgical society where everything wears out over time and must be repaired or replaced.

Depreciation is inescapable and it is economically significant, except to professional economists.

depreciation has nothing to do with the situation of black people. white supremacy does.