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The business hopes to make the loss back through sales generated by the loss-leader.īut, when governments hand out freebies, no sales will be generated, so the loss will not be recovered. They therefore become a line item on the monthly balance sheet, a cost-of-doing-business expense. In business, freebies are sometimes provided as “loss-leaders” to attract more business. Freebies of any description must be paid for by someone.
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Unfortunately, the idea that freebies are free is inaccurate. Trouble is, all that easy money and entitlement exists only as long as a source for the “freebies” exists. Much the same exists in Europe, Canada, and quite a few other countries that have, over recent decades, followed the American socio-economic model. But, if this is true, Americans certainly aren’t alone.
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as being somewhat insulated, spoiled, naïve, and short-sighted. government has fuelled American complacency through a consciousness of easy money and entitlement.Īnd so, Americans are often perceived by those outside the U.S. Since the 1950’s, much of the world has perceived Americans as being on “Easy Street,” and in recent decades, the U.S. If this is his intent, he’s succeeded well in his light-hearted, but instructive video. Mister Dice doesn’t comment in the video as to what lesson might be learned from this, but an obvious one would be that Americans (or at least those who reside in his home town of San Diego, California) are prone to prefer instant gratification over something of substantially greater, but delayed value.