The Little Yellow Hen (The Little Red Hen Revisited)

Probably one of the wisest micro and macro economic stories ever written is "The Little Red Hen." You have probably read it! If you have not read it recently, do so, and have your economic thinking cap on. It is of Russian origin, pre-communist era of course, and is most instructive. If you do read it again, you will see how to get out of the current economic mess that is deepening. But I digress!

I am revisiting that story today, with "The Little Yellow Hen."

The players:

The Little Yellow Hen

The Spoiled Princess

The Hard-working Teenager

The Benevolent Capitalist/Entrepreneur

One day The Little Yellow Hen wanted to use her new oven to bake some banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. I'm napping."

She asked The Hard-working Teenager.

"I can't. I'm doing homework." The Little Yellow Hen noticed that The Hard-working Teenager was holding the TV remote, but decided not to pursue the point in favor of peace in the land.

She called through the house for The Benevolent Capitalist/Entrepreneur. But he was no where to be found. He was not home, in favor of being in the market applying and multiplying his talents for a pecuniary return for his labors, called profit.

So The Little Yellow Hen began to gather materials to make the banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. I'm still napping." And The Spoiled Princess turned over.

She asked The Hard-working Teenager.

"I can't. I'm still doing homework." And she flipped the channel. The Little Yellow Hen was upset by this, but wisely decided not to pursue the point in favor of peace in the land.

She knew not to call for The Benevolent Capitalist/Entrepreneur as she knew he was still in the market applying and multiplying his talents for a pecuniary return for his labors, called profit.

Having mixed the materials into a fragrant, delicious batter, she wanted to put it into cooking pans to bake it into banana nut bread. She wanted help.

So she asked The Spoiled Princess.

"I can't. After having licked the nut crumbs you spilled onto the kitchen floor when you were dicing them, I am very tired and I need another nap."

So she asked The Hard-working Teenager.

"I can't. My favorite show isn't finished, um, I mean, I am not quite done with my homework." The Little Yellow Hen was upset by this, but wisely decided not to pursue it in favor of peace in the land.

And of course, she knew not to call for The Benevolent Capitalist/Entrepreneur as she knew he was still in the market applying and multiplying his talents for a pecuniary return for his labors. He works a lot and despite sometimes feeling alone in her work, and in her stylish, well appointed and large kingdom, she understands and is grateful for his willingness to work so hard.

Well, the banana nut bread was baked. It needed to cool. Just then The Benevolent Capitalist/Entrepreneur returned to the stylish, well-appointed and large kingdom. He smelled the banana nut bread and was made glad.

The Little Yellow Hen asked, "I realize that nobody helped me in any way to make this banana nut bread, but who would like to help me to eat it? I am not sure anybody deserves even one slice."

But everyone disagreed with The Little Yellow Hen.

The Spoiled Princess said, "I helped you constantly during the process with instant janitorial services, cleaning as you worked. I also provided early warning of people at the door and door greeter services that exceed even that of a WalMart store. And even now, I am laying at your feet assuming the prettiest receive pose I can muster! I deserve a piece of the banana nut bread for all my work."

The Hard-working Teenager said, "I helped you constantly during the process by doing my homework. I am used to doing homework with the TV in my face and music playing into my ears. And you know I have gotten good grades all year, very good actually, that I might attend the special academic program at the high school next year. I do that so that one day I can afford to slam your butt into a home when you get old so I do not have to change your diapers. I deserve a piece of the banana nut bread for all my hard work."

The Benevolent Capitalist/Entrepreneur said, "I helped you constantly during the process by putting myself into the market and applying and multiplying my talents for pecuniary return for my labors. With that return for the risk of my many investments of time, talent and energy, I have been able to provide the means of production for all aspects of the banana nut bread. All of the capital that went into the nut bread, except for the many abilities of The Little Yellow Hen, and the labor required to employ that capital, was my responsibility and I met those needs. I deserve a piece of the banana nut bread."

The Little Yellow Hen agreed. How could she argue with such effort!

And she put the banana nut bread on the counter to cool.

Somehow while the banana nut bread was cooling a slice was removed. The Little Yellow Hen did not like that, but nobody knew how it could possibly have happened.

The Benevolent Capitalist/Entrepreneur suggested it might have been a ghost.

I think he was right. He is, after all, very familiar with that ghost...

The moral of the story? If the gubment would get the h**l out of the way of the capitalist/entrepreneurs in the market, they could, and would, do more of what they do best, creating more opportunity and employment in the process. Crushing and endless regulation, employment benefit rules, profit disincentives, prohibitive taxes, favors and benefits for politically-aligned union thugs at the expense of the rest of us, taking over businesses, licensing, general uncertainty with what the gubment wants to do next, market-entry restrictions and a host of other market-killing activities make it hard for business people (capitalists and entrepreneurs) to employ other people, much less their own talents.

The gubment CANNOT create jobs, but it can create an environment which encourages private-sector job growth by getting out of the way! Let's hope for change in that regard.

The End.