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Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Thursday, March 17, 2022

Dismantling Wall Street’s excuses for short selling

 https://upsidechronicles.com/2021/09/14/dismantling-wall-streets-defense-of-short-selling/

Thursday, November 11, 2021

 https://old.reddit.com/r/Superstonk/comments/qrvkj4/one_last_milking_of_the_lower_class_before/
Lots of signs of problems with the current economy (lots of personal stories in this thread)

Friday, August 14, 2020

 https://old.reddit.com/r/politics/comments/i73oi7/aoc_asks_andrew_cuomo_why_indoor_schooling_is/g10h0zg/

Wednesday, June 14, 2017

Post Scarcity won't happen.

I see a lot of posts on reddit, and occasional articles claiming that robots and AIs will lower the cost of goods and services to the point where everything is free. There is one major problem: Land will always be limited. As the cost of goods and services decline, housing will rise.

Monday, October 31, 2016

The Fundamental Flaw of Capitalism:

TL;DR: The engine of capitalism uses the wealth of workers as fuel. This will run out if no interventions exist to replenish it.

It is a general rule: If you work for someone else, you are generating more value than you are being paid.

If you didn't generate more value than you were paid, there would be no point in hiring you. This means that the total spending of the worker base, is greater than the total income received by workers, because a portion of that spent money, goes to the owners as profits to the business; wealth moves up.

The flow of wealth from the bottom to the top, is a fundamental part of capitalism, and a major part of how it functions. Without it, businesses couldn't be profitable, and for the economy to grow, businesses need profits.

There's a problem: If left alone, the entire system will slowly grind to a halt as it drains every last bit of wealth from the bottom, until there's nothing left.

Keeping the system running at full speed, and keeping the economy growing, requires the wealth at the bottom to not run out. In the past this has been done through constant expansion. Gaining new lands and resources for the workers to harvest and the owners to profit from. Nowadays though, we've already taken over so much of the world's land, there just isn't much room for expansion left. We are hitting the limits of land wealth available to us.

The fundamental flaw of capitalism, is that it relies upon the movement of wealth from the bottom to the top, but contains no built in system for that wealth to be replenished. To keep things running, it is important to create a system for transferring wealth back down, so it can move back up and keep the engine running.