Life Inc. Dispatch 08: Capitalism, for Dummies

[imre1000]

Douglas, you obviously mean well but you simply don't understand what Capitalism really is, or even basic Economics.

Please watch Irwin Schiff's explanation of how an economy grows and why it doesn't:

He's 80+ years old and is currently in jail for his principles & actions.

/watch?v=bFxvy9XyUtg

It takes an hour and a bit to watch but has more wisdom in it than most economics degrees that take 3-4 years to get.

[Renegen1]

Some of what he says is bad like capitalism borrowing from the future . .

Well a stock market growing at 10-15% might borrow from the future, but one growing at 5% won't. Capitalism has existed for 500 years and at the basis it will always grow, though only slowly. To make it grow rapidly, you must take from somewhere else, other people (poor), the future etc

Either way, the word capitalism is just a label! It's meant to confuse. I recommend people read Marx's Capital.

[imre1000]

@Renegen1 - I dont think there's a magic number for stock market growth, or when it becomes stealing.

If a farmer sells 100 tonnes of oranges one year, then 115 tonnes the next due to population growth or because he found a cheaper way of growing them - that's 15% growth. And he didn't have to steal it from anyone.

I think people should stop thinking in dollars, and more in real output. Good and services.

Marx wants a collectivist society, based on good willing leaders. This doesn't work.

[Renegen1]

No, it's pretty simple. Capitalism has a long term growth rate of about 2.5%. The stock market has a long term growth rate of 10%. You go above that, it's temporary. Also for a stock to increase, its profits need to increase. To get that huge profit gain, they lower worker wages, increases prices etc

Also Marx talked mostly about what capitalism IS not what his utupia would be. He was very much rooted in reality. That his name got tarnished, that's too bad. It's great education.

[imre1000]

@Renegen1 - what did he base 2.5% on?

[Renegen1]

the history over the past 100 years. Growth quite simply comes from technological growth, and some of it from population growth and capital growth. There was plenty of all 3 over the last 100 years and the world GDP increased at 2.5%.

[imre1000]

@Renegen1 - taking a 100 year total and dividing it by 100, and then expecting this to be an accurate guide for future growth rates seems a bit too simplistic to me.

In general, a free society will grow and improve it's quality of living much more than a collectivist, restricted society.

Have a look at this video by John Stossel if you have some spare time:

/watch?v=DdXdQei5Bws

It's very well researched and explains where most of today's problems really come from. And it's not 'Capitalism'.

[Renegen1]

too simplistic? Actually YOUR calculation is too simplistic, because if you knew anything about growth you'd know it's compounded growth and you can't divide by 100 to get the compounded annual growth. You really are clueless. Furthermore, the last 100 years have been incredible in terms of growth, what more data do you need?

Lastly, Stossel is friends with guys like the Cato Institute, a think tank financed by Koch industry, not that you would know. You're totally clueless.

[imre1000]

@Renegen1, yeah ok I left out the compounding bit.

I'll respect your opinion a lot more if you explained your point rather than dismissing someone as a hack.

I don't think Marx is evil, I just disagree with his philiosophy.

[Renegen1]

And I'm not smart enough to engineer a society to make a communist utopia work, but I respect Marx's analysis of power and class.

But I do see what the problems are, and it's concentrated power. Libertarianism is #1, a pipe dream, because those who are corrupt and receiving massive subsidies will never give it up, and #2 won't work because with small government you'll still have big business.

You want to make America better? Get rid of the military industrial complex, it's a safe issue.

[imre1000]

@Renegen1, no one is smart enough to 'engineer a society'. That's the main point of a free market. It's up to millions of consumers and business to decide what's best, using their own everyday actions and decisions.

The US army is way too big, I'll agree with you on that one.

[Bananaramafy]

@imre1000 You have done exceptionally well not to lose your cool throughout this debate with Mr. Canada.

I'm too young and naive to know any of this stuff properly, but I'll side with you because you have good grammar and the ability to 'give and take' in an argument.

Kind of refreshing to see a YouTube debate that doesn't completely degenerate into a idiotic dick measuring contest in which facts and logic are thrown down the crapper and the winner is decided by who has the best insult.

[Renegen1]

And btw, I live in Canada, I have free health care, I have one third of my education paid out by the government, I have low interest government loans for education AND I have lower taxes, and we have higher wages. I'm not wasting my time talking to you because of some silly ideological bend. You americans are so pathetic to think the solutions to all your problems is to go back 100 years into libertarianism, you're so brainwashed and ignorant even your "solutions" support the status quo.

[imre1000]

@Renegen1, I'm Australian :)

And I have so called 'free' healthcare too. Well it's not really free, I pay for it through taxes and it gets distributed to anyone that shouts loud enough that they are in need.

Our hospitals are at over 100% capacity all the time. So are Canada's from what I've been reading (?).

I'd much rather scrap it for free market reform.

I also have 'free' education. I pay for it via taxes, and it gets given out to any school that shouts loud enough that is in need...

[Renegen1]

And I'm out. If you don't want to accept a lifeline from me and see the right path, that's your prerogative. My theory is simple, if you (and others just like you) refuse what I say, then I predict the US to get worse before it gets better. Go on hate that evil European / Canadian socialism.

I'll be living a much better and happier life. But I will be available if you finally change your mind.

[jd02nr1]

awesome and extremly easy to understand,

to bad i didn`t have this video yesterday in class in which i had to explain capitalism in 1 sentence...