Discussion in 'Markets & Economies' started by willrocks, Sep 11, 2019.
What inequality though? Those languishing should have studied harder or learned a trade that makes good money.
The pollies pander to those who didnt study hard or learn a trade. That's how one liberal obongo can get 98 percent of the black vote even tho none can name his policies.
Generational ignorance is no excuse.
Trump Says Fed "Boneheads" Should Cut Rates "To ZERO Or Less", So US Can Refinance Debt And Lenghten Maturities https://www.zerohedge.com/economics...or-less-so-us-can-refinance-debt-and-lenghten
That sounds like the Drumph I know. The keyensian debt king is at his old antics again.
Zero interest rates? The alinksy liberal in him just cant resist!
Now that hes taken full responsibility for our failing markets there will be no one else to blame. Good job retard.
There are those who are incapable of earning a good wage because they don't have any talent or intellect. In fact, the vast majority of us have very little talent and only modest intellect.
The beauty of capitalism though is that we stand on the shoulders of those few who do have talent and intellect. It's those few that make the rest of us wealthier than we would normally have been under any other non-capitalist system. I've never met Henry Ford, Steve Jobs or Galileo, but my life is richer because of those giants.
The danger that the low intellect and talentless face comes from the welfare state and the artificial inflation of the cost of production because of wage floors and minimum working conditions such as parental leave, sick pay etc. These factors confine whole sectors of society to the unemployment scrap heap as producers are reluctant to hire them because the returns don't exceed the expense.
Trump is certainly no Reagan.
The central reserve bank rates of Japan, Sweden, Switzerland and Denmark are all negative (below zero) right now as we speak. Other nations around the world have 0%. Australia is 1%, and UK is .75%, EU rate is .25%.
The US is currently 2.25%. This hurts the US by making its currency too strong compared to the currencies that compete against the dollar.
Shows obvious anti Trump bias by criticizing him for suggesting to do what virtually all other advanced non third world countries are doing, that is get interest rates very f'ing low. Yes it's bad in some ways to lower so much, but not doing it is bad in some ways too if everyone else is doing it.
I don't personally think the US needs a 0% rate, but definitely should get it back to the levels when Obummer was in charge.
I don't think Trump believes we need 0% or negative rates, but in his usual negotiating type style pushes for the moon to get a better deal even if it winds up less than that. If the US Fed would lower a half basis point at the next meeting (I doubt they will, but probably .25%), I think Trump would shut up about it. He is putting on his show for the US Fed especially Powell.
A simplistic way of looking at it. I would say each need each other. The "intellect" requires the "simple" to perform the tedious labor that they wouldn't want to do. The "simple" requires the "intellect" to think of ideas that they are not capable of. The system works because there is a gradient of desires/ability, take away that gradient and everything stops.
It's like saying a electrical circuit only works due to the charge of electrons. In reality it works due to a voltage difference where both positive and negative are equally required to make the circuit work.
Take away the private ownership of the means of production and the profit incentive and the system fails because talent either flees eg brain drain, or is destroyed eg Mao and Pol Pot.
For most of millennia humankind's progress was fairly stagnant, with talent being mainly confined to who could wield the quickest sword and win the most women. Progress toward protecting property rights (as well as developments in social values) lifted us out of the feudal fields and into our own homes. This doesn't come from any other system except a free-market based one - capitalism.
Careful @Jim4silver , a similar charge could be levelled at you - obvious pro-Trump bias. Especially if sound economic theory is ignored.
Come on, there are plenty of highly educated Idiots out there, and there are plenty of very smart people doing the hard physical work because the idea sitting around in an office watching the stock market bores the shit out of them.
"The beauty of capitalism though is that we stand on the shoulders of those few who do have talent and intellect"
I think you will find its the opposite, its the very few standing on the shoulders of many making the money off their hard work.
Im not against capitalism, but you would be very naive to think the guys at the top are the good guys, there is allot of Greed by people who's only skill is being able manipulate the system and making others do the work for them to get richer, Those people know that so they make sure they kick down any one who tries to build them self up to avoid any competition.
There is certainly allot of attempts by those at the top to push down those at the bottom and keep them there, money doesnt flow like water, money Flows up not down
They throw you little tid-bits every now and again and expect you tobe thankful, but those guys are standing on the shoulders of many not the other way around.
Again Im not anti capitalist, its the better of two evils, But the problem with any system is simple, Human greed. These highly successful capitalists would be just as happy in a socialist society, they would find them selves doing the same there and making the same money if not more, the only difference is they just have to use a bit more brutal force to get their money than they need to in capitalist society.
Who designed and produced the computer/phone/tablet you're now on?
Someone with the risk appetite required to put their vision and intellect on the line in order to profit. You take away the the entrepreneur and those who you argue are the actual creators of wealth eg the workers, will be reduced to digging up spuds and feeding sparrows to their children, that's if their children survive past their 2nd birthday. Just as it was in the not-to-distant past.
Now we're back on topic, this is why there are booms and busts. Governments interfering in the business cycle, artificially inflating supply, legislating to protect their mates and drive out competition rewards the greedy and those who would seek to use the power of the State to force their values on to others.
The argument has nothing to o with good guys, bad guys or greed, that's human nature - it's all about how the political system best advances political equality.
Agree, money doesn't flow like water. It's a fallacy. In a free-market money is the means by which we voluntarily exchange the fruits of our labour for goods that meet our needs and desires. In a centralised economy whilst that still exists to an extent, the greatest portion of wealth is not transferred voluntarily but by the forced redistribution courtesy of government taxes and largesse. In our guided democracies it's the mates of those in power (crony-capitalists, trade unions and special interest groups) that benefit the most, at the expense of the productive.
U completely misunderstood what i wrote, as i was defending the "simple" (as referenced from mmm....shiny). So what you are saying doesn't make any sense directed at me. I suggest you re read what was written
Also a "highly educated Idiot" is still a idiot and is not what I'm referring to when i say "intellect"
I'm not suggesting to take away private ownership, so not sure why you even mention that? And I'm not saying Capitalism is bad. I'm just saying lets not disregard a vital part that is needed for capitalism to work.
This is the reason why i like Japan. They have a good understand that every part of society is needed for the system to work. high and low income and intelligence.
probably not the best resource, but anyway, life in Colonial, proto-capitalist America:
I think it's more than just the sum of its parts, private property rights were the multiplier.
I will admit my bias.
Funny that the thing that propelled society the most was electricity and then AC electricity/motor. Nikola Tesla and Michael Faraday cared very little of Patents or property rights. But again that's not to say i think private property rights are bad.
These men could invent because their time was freed up due to other people doing the mundane tasks.
Separate names with a comma.