One of the wonderful things about economics, is that it allows us to develop relatively simple, overarching, accurate theories about human actions. What tends to be lost is that, many times when discussion turns to the activities of a firm, it is assumed that a different set of rules or theories are needed.

The classic model of a firm represents what is effectively nothing more an overly myopic individual when it comes to the analysis of economic activities. The firm’s goal, like any other individual’s goal, is simply to maximize utility. The firm’s inherent myopia is easy enough to grasp, it is profit seeking. As a result, maximizing utility is the same as maximizing profit. The firm then makes decisions amongst bundles of action-options that result in some combination of expected short- or long- term benefits to the firm.

The easiest way to visualize this is to view the firm as operating as an agent in a 2 product market place. The firm consumes either short-term benefiting actions, or long-term benefiting actions. All other goods are simply treated as irrelevant in calculating which action to take, as they do not serve to benefit the firm, and can therefore be largely ignored when analyzing the firm’s activities.

By plotting a graph showing different bundles of action-options (long-term and short-term expected benefits as goods x and y), a firm’s chosen bundle can then be determined by plotting it’s indifference curves and selecting the bundle that exists on the highest possible indifference curve. Exactly the same as you would for a standard consumer/individual.

When addressing analysis of the classical model of individuals or “consumers”, the same concept is well accepted. You and I routinely make decisions as to what actions to take to increase our respective utility in the same matter. Will the additional utility I receive by eating a whole pizza instead of just a few slices make up for the additional cost associated with the caloric intake, weight gain, and possible eventual consequences associated with that (effort involved to lose the weight at a later time, increased health care expenses due to obesity, decreased mating pool or increased mating costs due to less desirable physical characteristics, etc etc etc), or am I better foregoing the additional slices of pizza in exchange for the alternative benefits associated.

To divide economic actors into arbitrary groupings such as “consumers” and “producers”, or “individuals” and “firms”, or anything else of the like, actually serves to cloud potential economic insights by inferring a differentiation between the base motives of the activities undertaken by economic actors in each arbitrary group. “Consumers” produce labor. “Producers” consume labor. The simple fact is that underlying ALL activity, is nothing more than an actor’s self-interested attempt to maximize their utility.

I usually don’t like to do this sort of thing, but you out of all people should know the internet is not your playground.   If you haven’t been following the social media drama surrounding this interesting fellow let me give you a short re-cap.

This is Kurt Greenbaum, self proclaimed ”STL Social Media Guy.”  Kurt is the Director of Social Media for the St. Louis Post-Dispatch, and writes for STLtoday.com and his own proxy site, igreenbaum.com.  Kurt engages his users by asking questions, more or less water-cooler conversations.  Well when you ask the question “What is the craziest thing you have eaten?”  don’t act too shocked when someone posts something vulgar.

Now I have no problem with deleting inappropriate comments on a PG rated website, but when you break your own terms of service because someone posted “pussy” that’s when I get irked.  The terms of service isn’t there just to look at and further officiate one’s self.  It’s a legal document protecting the end-user and website by stating clauses that both parties can agree too, if you disagree then you don’t have rights to post.

When you give out private information explicitly said that would have been protected in the terms of service you break the contract, and that is the exact moment you become an asshole.  Is the poster at fault for posting a vulgar word?  Yeah, I’ll give Kurt that considering he doesn’t have to much going his way.  Kurt you’re disregard for your own rules sets a bad example for social media and St. Louis journalism.  You contacted Mr. X’s employer and consequentially got him fired.  That IP address that you had was to be given out to nobody unless it was stated in your terms of service, which it wasn’t.

Now you’re a victim of the internet’s hate machine.

You out of all people should know you should never try and play god in the internet’s dealings.  This place isn’t your information warehouse, where you can distinguish who gets what information.  There would have been an easy way to avoid this but instead of brushing it to the side you did something else.

You Gloated about it.

What a pompous troglodyte.  You had enough balls to break your ToS, let alone inform the internet that you got someone fired?  This man is a social media genius, if he likes causing uproar and anger amongst the very fabric he is employed to work with.

Here’s to you Kurt Greenbaum, you’re a douche.