For once I agree with you. The core problem is outside the control of our national elected representatives. On a global scale, we are now at the verge of the second major collapse of capitalism in 75 years (with a number of smaller conventional economic downturns between these two crises).
We are not in a conventional economic downturn, this is a crisis that has been building for at least the past century.
Money is spent on commodities in order to increase money.
Profit is based on this formula: S/ (C+V)
S=Surplus value
Value is: V+S=W
W= Value
Exchange value can only be created by variable capital, not constant capital (machines) and prices are set in proportion to the objective value of a commodity.
In order to increase the rate of profit, the capitalist can do two things: either increase the rate of S by getting the worker to work harder or for lower wages, or he could invest in technology that gives him a short term advantage over other competing capitalist.
Machines take away the amount of labour needed for the production of a commodity (saving money on V) thus in the short term raising the market share dominated by an individual capitalist through being able to undersell competition.
As soon as the machinery becomes available to all in the industry and the initial advantage of the individual capitalist is lost. Vast amounts of constant capital gets directed towards the industry of technological innovation; this leads to the laws of supply and demand brining the price of the commodity down to a lower level than it was before the introduction of the innovation in question.
Profit ends up decreasing as an overproduction of commodities takes hold.
As the industry loses its profitability, capital is withdrawn (often to socially devastating results) and those that stay in the industry have to invest more M into C in order survive.
Further tech innovation drive profits even further down as those that invested in large scale technology. As the demands to keep up with tech innovation rises, so do demands for capitalist to invest in C (thus eating into profit) as huge amounts of M gets invested into productive equiptment that become outdated.
In a sense, this clogs up the M-C-M circuit, as too much capital gets stuck and clogged up in fixed capital. In the global economic crisis we over accumulation in many different forms. Global retail sales are down and commodities are bunching up in warehouses, industries are closing factories and firing workers, there is an excess of credit unable to be paid off. In the above cases there is too much capital stuck somewhere in the circuit of capital that is unable to move to the next stage.
In the formula S/(C+V) ;the rate of C rises thus reducing profit. Furthermore V decreases thus affecting the total amount of exchange value in society:
V+S=W (V decreases, and thus W also decreases).
Since production in capitalism is directed towards exchange value and not use values, this creates economic crises as productive forces are adjusted to get back in line with overall exchange value.
In sum: Crises and economic instability is created internally by the system. Get it? Got it? Good
C=Constant Capital (i.e. fixed means of production and raw materials) and V=Variable Capital (i.e. wages)
When I use C to talk of investment in fixed capital I refer to constant capital. Sorry about this minor omission, the character limits on youtube meant that I accidently left this out of the original post.
Hahaha.... This is no proof that ALL of the money handed out was spent on retail. Do you have any idea how much of this money was spent on mortgages or overseas holidays? Furthermore, the money went to dead people and expatriates! So goddamn inconsistent.
Money given to tens of thousands of expatriates is not a non issue. These results from the cash splash are very temporary, you do realise that? You can expect high taxes, high interest rates, and high inflation within a couple of years. Ask yourself, is it worth it? Do you agree with what Krudd says like an economically ignorant muppet, or is this what you think?
I do not know how many expats there are; but I will go by your vague number that there are "tens of thousands".
I will give a generous estimate that there are 90 thousand expats that have paid enough tax to get the $950 bonus. That equates to $85.5 million dollars- this is next to nothing when considering that the total package is $12.7 billion (which roughly equates to about 0.6% total stimulus package)
You simply change the subject away from expats when your point on expats has been debunked?
In response to your questions on schools, I know nothing and I admit I am not an expert on the needs of Australia's secondary schools. You are asking me a question way outside my field and I have done zero research on the topic.
Where is your evidence that all resources are being spent on "gym floors"?
I admit that am NOT an expert on this issue, but I will not believe your claim that schools can not benefit from extra funding unless you can back it up with some real data and real argument, not just crap like "oh they are just gonna spend it on a gym floor".
Like I said, I admit that I am an idiot on this issue, but I have not seen anything out of you to convince me to hold your position.
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN'
I would rather have the 25 billion more spent and have jobs supported in retail and have more money put into hospital and schools insted of taken out by the liberals.
I would rather have our troops out of Iraq .
I am happy to have the liberals out of office after 11 years of lies and cover ups.
And dont pretend you are not a liberal supporter .
Your first comment is a liberal lie that you stand by.
You can debate the amount but you cant pretend that liberal would not have us in debt.
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN.
That comment doesn't make me one eyed. You ignored what I stated about both parties needing a shake up - TO SUIT YOURSELF! Are you so precious over criticism of ALP? What do you disagree with re ALP// Hmmmm? Rudd destroying Keating's good superannuation set up perhaps?
Do you really follow along and believe ALP are faultless? Lib & ALP have been sitting on their perches for too long. Both warrant criticism. I wish you an awakening. Cheers!
You have a belief that only labor would have us in debt.
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN'
WHAT PARTY WOULD NOT HAVE US IN DEBT? WHO DO I VOTE FOR?
WHAT CHOICE DID I HAVE IN THE LAST ELECTION?
Liberal had to go ,labor had to come in there was no choice and never has been.
BAITED! A delightful group of folk believe people had taken a step away from a bias one sided sheep mentality and are now able to see the black, white and grey within the parties. I've proven my point to them. You are "one of them" I have to thank for allowing me to win the bet. Thanks mate!
I get what you say here but you do seem to be sprouting that ALP is the answer to our prayers. I can't see an answer from them or Lib "at present". I do truly wish that some how they both would get a good shake up to the core! They need it - have needed it for ages.
Greens woeful. Democrats, yes dead. The choices are shocking.
Honestly, I think that 'sprouting ALP with reason' . . . .well they're no better. Cover ups, lies, factions, union back slaps and if pressure is applied again they too will succumb to USA wishes. Sadly we are becoming a mini USA.
Rudd doesn't impress (Turnball neither) - another Latham but in an upmarket disguise. Woe is Aus with zero choices.
too bad that all the money was supposed to go to Workers ie builders, contractors etc to continue employment, they get the money and spend it etc etc yet... it goes to retailers the people the government DID NOT want the money to go to because ultimately it runs straight back to the CEP's etc.... :(
I would agree with you, though I'm a bit annoyed that myself and lots of people I know never ever received any stimulus payment, when we are as capable of forking out money into the economy as anyone else.
It was Just a short term fix and is has only postponed the recession.
In Victoria alone over $40 million dollars has been put in to pokies since the payments started, Drug demands and alcohol sales are up also.
Everyone it just going to get hit with extra taxs and higher interest rates to pay back the wasted money. I did not say no to the $900 dollars but the money could have been spent a lot wiser.
You know, it's ridiculously hard to trust your political opinion when all you give is entirely coincidences with whatever Labor does, and that all you really have to back up your opinion is a news clip saying "Retailers reported better sales".
Also, as for this stimulus package, yes the government DOES have to spend in times of trouble but they have done it entirely wrong.
As with stimulus packages you can see the econmeny go up then take a dive with inflaiton shorly after.will be intresting2c
Let me guess you were a liberal untill they lost the election now its fuck them both.
Well i agree fuck them both but i will take the lesser of two evils and after the liberal performance of core and non core promises lies lies and more lies they need to change to get my vote.
Your link does not leed to anything.
But being a myspace link it could only be shit anyway.
But if you insist on showing me send the link to me in a message and try getting the right one.
it hasnt fucking worked at all it has temerarily taken the focus of the real problem
Dellboy34 2 years ago
For once I agree with you. The core problem is outside the control of our national elected representatives. On a global scale, we are now at the verge of the second major collapse of capitalism in 75 years (with a number of smaller conventional economic downturns between these two crises).
We are not in a conventional economic downturn, this is a crisis that has been building for at least the past century.
Catholicboy4life 2 years ago
Some basic economics:
Capitalist production is based on this formula:
M-C-M
M=Money , C= Commodity
Money is spent on commodities in order to increase money.
Profit is based on this formula: S/ (C+V)
S=Surplus value
Value is: V+S=W
W= Value
Exchange value can only be created by variable capital, not constant capital (machines) and prices are set in proportion to the objective value of a commodity.
Catholicboy4life 2 years ago
In order to increase the rate of profit, the capitalist can do two things: either increase the rate of S by getting the worker to work harder or for lower wages, or he could invest in technology that gives him a short term advantage over other competing capitalist.
Machines take away the amount of labour needed for the production of a commodity (saving money on V) thus in the short term raising the market share dominated by an individual capitalist through being able to undersell competition.
Catholicboy4life 2 years ago
As soon as the machinery becomes available to all in the industry and the initial advantage of the individual capitalist is lost. Vast amounts of constant capital gets directed towards the industry of technological innovation; this leads to the laws of supply and demand brining the price of the commodity down to a lower level than it was before the introduction of the innovation in question.
Profit ends up decreasing as an overproduction of commodities takes hold.
Catholicboy4life 2 years ago
As the industry loses its profitability, capital is withdrawn (often to socially devastating results) and those that stay in the industry have to invest more M into C in order survive.
Further tech innovation drive profits even further down as those that invested in large scale technology. As the demands to keep up with tech innovation rises, so do demands for capitalist to invest in C (thus eating into profit) as huge amounts of M gets invested into productive equiptment that become outdated.
Catholicboy4life 2 years ago
MATE when was the last time you got laid
Dellboy34 2 years ago
In a sense, this clogs up the M-C-M circuit, as too much capital gets stuck and clogged up in fixed capital. In the global economic crisis we over accumulation in many different forms. Global retail sales are down and commodities are bunching up in warehouses, industries are closing factories and firing workers, there is an excess of credit unable to be paid off. In the above cases there is too much capital stuck somewhere in the circuit of capital that is unable to move to the next stage.
Catholicboy4life 2 years ago
In the formula S/(C+V) ;the rate of C rises thus reducing profit. Furthermore V decreases thus affecting the total amount of exchange value in society:
V+S=W (V decreases, and thus W also decreases).
Since production in capitalism is directed towards exchange value and not use values, this creates economic crises as productive forces are adjusted to get back in line with overall exchange value.
In sum: Crises and economic instability is created internally by the system. Get it? Got it? Good
Catholicboy4life 2 years ago
One very brief clarification:
In the formula M-C-M; C= Commodities
In the formula for profit S/ (C+V)
C=Constant Capital (i.e. fixed means of production and raw materials) and V=Variable Capital (i.e. wages)
When I use C to talk of investment in fixed capital I refer to constant capital. Sorry about this minor omission, the character limits on youtube meant that I accidently left this out of the original post.
Catholicboy4life 2 years ago
Good analysis. But I have one thing I would like to correct. The full formula for the circuit of capital (including money capital) is:
M-C >LP...P...C'-M'-(M+ΔM) MP
marxian00 2 years ago
suck on that liberal fags
knew all along that labor was better party than the coalition
HalleLuvsNRL 2 years ago
Hahaha.... This is no proof that ALL of the money handed out was spent on retail. Do you have any idea how much of this money was spent on mortgages or overseas holidays? Furthermore, the money went to dead people and expatriates! So goddamn inconsistent.
symons3569 2 years ago
If you had half a brain and listen to the stats that have come out insted of listening to the washed up liberals
You would know that sales figures are up each month of this year so far.
And when i say up i mean up on last year.
That would not have happened without the payments .
More jobs would have been lost and you would be here bitching about that insted.
And the payments to the dead have also been spent so that is a NON issue.
australianews 2 years ago
Money given to tens of thousands of expatriates is not a non issue. These results from the cash splash are very temporary, you do realise that? You can expect high taxes, high interest rates, and high inflation within a couple of years. Ask yourself, is it worth it? Do you agree with what Krudd says like an economically ignorant muppet, or is this what you think?
symons3569 2 years ago
unlike you i go on facts and figures.
Second the liberals have allready said they would go into debt and joe hockey has said 25 billion less at least.
But we will never know the true figure coz they got voted out .
300 billion VS 275 billion still leaves us paying a debt DOES IT NOT?
So the point of debt payback is kind of stupid when the libs would have us in debt as well.
australianews 2 years ago
I do not know how many expats there are; but I will go by your vague number that there are "tens of thousands".
I will give a generous estimate that there are 90 thousand expats that have paid enough tax to get the $950 bonus. That equates to $85.5 million dollars- this is next to nothing when considering that the total package is $12.7 billion (which roughly equates to about 0.6% total stimulus package)
Catholicboy4life 2 years ago
And tell me, what about the poor allocation of school funding? Schools getting 6 million dollars when they don't need it?
Furthermore, how will a new gym floor increase year 12 results?
symons3569 2 years ago
Did you read any of my last post at all?
You simply change the subject away from expats when your point on expats has been debunked?
In response to your questions on schools, I know nothing and I admit I am not an expert on the needs of Australia's secondary schools. You are asking me a question way outside my field and I have done zero research on the topic.
Where is your evidence that all resources are being spent on "gym floors"?
Catholicboy4life 2 years ago
I admit that am NOT an expert on this issue, but I will not believe your claim that schools can not benefit from extra funding unless you can back it up with some real data and real argument, not just crap like "oh they are just gonna spend it on a gym floor".
Like I said, I admit that I am an idiot on this issue, but I have not seen anything out of you to convince me to hold your position.
Catholicboy4life 2 years ago
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN'
eellexa 2 years ago
The liberals claim they would have us 25
billion less ,so insted of 300 billion in debt.
The debt would be 275 billion .
so what are you bitching about.
australianews 2 years ago
I'm impressed! LOL! 25 bil is a drop in the ocean to you.
One eyed devotion causes blindness.
I'd prefer to ferret out the faults on both sides.
eellexa 2 years ago
I would rather have the 25 billion more spent and have jobs supported in retail and have more money put into hospital and schools insted of taken out by the liberals.
I would rather have our troops out of Iraq .
I am happy to have the liberals out of office after 11 years of lies and cover ups.
And dont pretend you are not a liberal supporter .
Your first comment is a liberal lie that you stand by.
You can debate the amount but you cant pretend that liberal would not have us in debt.
australianews 2 years ago
As I stated, to be so one eyed is to be blind. Factually - I am a swinging voter, so don't put me in a one eyed Lib or ALP box. I
I am pretending nothing. You on the other hand are presuming. I believe both these parties need a dam good shake up, not blind devotion.
eellexa 2 years ago
OH NO youre not one eyed, BULLSHIT.
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN.
australianews 2 years ago
That comment doesn't make me one eyed. You ignored what I stated about both parties needing a shake up - TO SUIT YOURSELF! Are you so precious over criticism of ALP? What do you disagree with re ALP// Hmmmm? Rudd destroying Keating's good superannuation set up perhaps?
Do you really follow along and believe ALP are faultless? Lib & ALP have been sitting on their perches for too long. Both warrant criticism. I wish you an awakening. Cheers!
eellexa 2 years ago
You have taken the liberals word for word on debt.
FACT, NO MATTER WHO is running the country WE HAVE TO HAVE DEBT.
THE LIBERALS HAVE ADMITTED THIS FACT.
HOCKEY IS ON THE RECORD SAYING 25 billion LESS at least if we were in power.
You just dont understand and carry on like the labor party would have us in DEBT but not the liberals
WAKE UP.
Its like talking to a brick wall.
australianews 2 years ago
OMG! ALL YOU LIB & ALP SHEEP ARE BAITED SO EASILY AND THE VENOM EXTRACTED.
Back to your herd. I genuinely wish you well & pray one day you will be able to see faults and attributes on all sides.
eellexa 2 years ago
ONCE again i point to youre first comment .
That is where this debate started.
You have a belief that only labor would have us in debt.
SPEND SPEND SPENT!! Now we're bloody broke, in hock to our necks and nothing in the kitty for a rainy day. THANKS LABOR FOR PUTTING US IN THE SHIT 'YET AGAIN'
WHAT PARTY WOULD NOT HAVE US IN DEBT? WHO DO I VOTE FOR?
WHAT CHOICE DID I HAVE IN THE LAST ELECTION?
Liberal had to go ,labor had to come in there was no choice and never has been.
australianews 2 years ago
BAITED! A delightful group of folk believe people had taken a step away from a bias one sided sheep mentality and are now able to see the black, white and grey within the parties. I've proven my point to them. You are "one of them" I have to thank for allowing me to win the bet. Thanks mate!
eellexa 2 years ago
Democrates DEAD .
GREENS cannot rule on there own.
SO apart from liberal who can i vote for when they went stale.
??????????????????????????
australianews 2 years ago
I get what you say here but you do seem to be sprouting that ALP is the answer to our prayers. I can't see an answer from them or Lib "at present". I do truly wish that some how they both would get a good shake up to the core! They need it - have needed it for ages.
Greens woeful. Democrats, yes dead. The choices are shocking.
eellexa 2 years ago
Well i do sprout labor but with reason.
I have never hated a political party more than i hated the howard government.
When howard first got in i didnt care which party run the country.
But orders to our troops to cover up numbers of dead in massacres in timore.
Iraq and the constant lies .
Their policy on boat people .
His friendship with bush who i believe to be the most crazy bastard DRUNK to ever run the USA.
I could go on but you get my point.
australianews 2 years ago
Honestly, I think that 'sprouting ALP with reason' . . . .well they're no better. Cover ups, lies, factions, union back slaps and if pressure is applied again they too will succumb to USA wishes. Sadly we are becoming a mini USA.
Rudd doesn't impress (Turnball neither) - another Latham but in an upmarket disguise. Woe is Aus with zero choices.
eellexa 2 years ago
too bad that all the money was supposed to go to Workers ie builders, contractors etc to continue employment, they get the money and spend it etc etc yet... it goes to retailers the people the government DID NOT want the money to go to because ultimately it runs straight back to the CEP's etc.... :(
TastyDijon 2 years ago
Only around a third went to these payments the rest has gone into school and local council projects and other building projects.
Joe hockey on tv this morning said the pensioners should have got the rise last budget ,well that is what the 900 was for .
If rudd had given them a rise last budget
it would have cost the country more money.
And what about 5c off fuel the the libs wanted to do ,that has now been droped like a hot rock.
How much tax loss would that have cost?
australianews 2 years ago
I would agree with you, though I'm a bit annoyed that myself and lots of people I know never ever received any stimulus payment, when we are as capable of forking out money into the economy as anyone else.
Stephen19852009 2 years ago
It was Just a short term fix and is has only postponed the recession.
In Victoria alone over $40 million dollars has been put in to pokies since the payments started, Drug demands and alcohol sales are up also.
Everyone it just going to get hit with extra taxs and higher interest rates to pay back the wasted money. I did not say no to the $900 dollars but the money could have been spent a lot wiser.
funkoz 2 years ago
They could have done nothing.
Some stores are reporting that they have had sales in times when it would be quiet.
I hate to burst your liberal bubble but no matter who is in charge would have to put the country in debt.
100 billion in tax has been cut from the budget.
What happens to a surplus of 15 or 20 billion? when you have lost 100 billion.
Maybe we could close all the hosipals sack the nurses doctors police Fire brigade.
And try for a surplus.
Will that make you happy?
australianews 2 years ago
Ruddy is a bloody champion!
StylidiumLane 2 years ago
It sure has shut the libs up.
They havent mentioned the cash splash
once sinse these reports have come out.
Gone real quiet LOL.
But i do have to wonder if it will all matter in the long run.
This recession could go on for a while yet.
australianews 2 years ago
I project this recession will last 10 years, I know its not good news, but there has never in the history of man, been a worldwide recession.
StylidiumLane 2 years ago
Every time it it rains, it rains
Pennies from Kevin.
lol
NextLifeDK 2 years ago
hahahha..........nice line!! LoL
Cupidx0x 2 years ago
Pennies from Kevin.
I like that quote.
australianews 2 years ago
rudd is my man!
justpostit 2 years ago
You know, it's ridiculously hard to trust your political opinion when all you give is entirely coincidences with whatever Labor does, and that all you really have to back up your opinion is a news clip saying "Retailers reported better sales".
Also, as for this stimulus package, yes the government DOES have to spend in times of trouble but they have done it entirely wrong.
As with stimulus packages you can see the econmeny go up then take a dive with inflaiton shorly after.will be intresting2c
Theanarchistatheist 2 years ago
And you have what to back the liberal point of view?
Go read the side of the video its in all the papers today .
I am australianews i put up news that is in the news.
The lies and spin from the liberals has been proven wrong the money is being spent.
So did the first payout but it was around xmas so it was hard to judge.
Not this time.
australianews 2 years ago
I don't have anything to back the liberal view, fuck them both.
Give this a read;
blogs.myspace (dwtcom)
/index.cfm?fuseaction=blog.view&friendId=204153232&blogId=470217610
Theanarchistatheist 2 years ago
Let me guess you were a liberal untill they lost the election now its fuck them both.
Well i agree fuck them both but i will take the lesser of two evils and after the liberal performance of core and non core promises lies lies and more lies they need to change to get my vote.
Your link does not leed to anything.
But being a myspace link it could only be shit anyway.
But if you insist on showing me send the link to me in a message and try getting the right one.
australianews 2 years ago
No, I wasn't a liberal.
I'll try sending the link in a message =).
Theanarchistatheist 2 years ago
You beauty, Go Kev!!!!
MyWeirdNewsChannel 2 years ago
After bagging rudd for his cash splash
the liberals seem to have gone very quiet
on this issue.
You could here the crickets in Question time today.LOL
australianews 2 years ago