Author Topic: Economic Tendencies  (Read 1088 times)

nidud

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Re: Economic Tendencies
« Reply #90 on: September 11, 2018, 12:12:33 AM »
Using the assumption that someone somewhere have already created a functional economy and cook up a plan on how to exploit it is not the best way to base a discussion on economic systems.

The base of the economy is still the boy who knocked up his girlfriend and went into dept to by a house. This dept-slavery will then be linked to a fraction of real value (property) which will be realized in the future if the cycle continues and expand.

This render the issue of China irrelevant given all the welt is based on demand from dept created by workers outside the country. This is somewhat seductive given countries like China (at least up till now) don't have to worry about demand-creation but just exploit already existing dept-slaves outside.

So this gives you a choice. You may adapt to the Gypsy lifestyle, gamble on tourism, cheap labour for export, or contribute to the fractional scheme by creating more dept-slaves this year than the last.

The latter option demands higher salaries and the former depends on it.

AW

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Re: Economic Tendencies
« Reply #91 on: September 11, 2018, 02:33:36 AM »
I wonder what "austerity" means.

There is no alternative to an "austerity" program, except not paying.
Greece managed well the situation being able to be forgiven large amounts of its outstanding debts. The remaining its still huge, though. They also tried to invoke German inflicted losses from WWII and reparations not done yet but were not well succeeded  :badgrin:


caballero

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Re: Economic Tendencies
« Reply #92 on: September 11, 2018, 04:54:47 AM »
@nidud
Mr. Maduro announced regularly a rise in wages for everyone. The crowd cheered him. In the best of cases, if the salary goes up for everyone equally, everything would be as it was at the beginning. The best case is not what usually occurs. Here you have some images of what some items cost, it's spectacular. On one side the article, on the other the pile of bills necessary to buy it.

https://www.bbc.com/mundo/noticias-america-latina-45247489

To raise salaries, you would need money. If you do not have it, you would have to borrow it, and you would need more money to pay the debts. If you do not sell enough to be able to return this money, in the best case it would be stagnant and your system would be inefficient. In the best case.


@aw
I agree with you. The problem is that humanity is a chaotic system. The main economies are already so indebted, that any slight economic puncture can explode the debt of some of them and, consequently, that of all the others. Brutal reset worldwide regardless of whether you try to improve your position.

I knew the case of Greece. Curiously I have recently read that Greece has just lowered taxes
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nidud

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Re: Economic Tendencies
« Reply #93 on: September 11, 2018, 05:37:36 AM »
@nidud
Mr. Maduro

The possibility that Mr. Maduro is going to invade Europe and announced regularly a rise in wages for everyone is very unlikely.

Quote
To raise salaries, you would need money.

Yes, if there's no profit made by the company it is by definition bankrupt: better close it down.