The Business Cycle: refuting "free market" myths (1 of 2)

For 2nd part click here http://www.youtube.com/watch?v=z9VrL_ipYUA

Category:

Education

Tags:

• business
• cycle
• capitalism
• class

[rflosi]

You definition of inflation is incorrect. You are claiming a result of inflation is inflation. Inflation is simply an increase in the money supply which has the effect of devaluing the currency, thus prices rises.

[mr1001nights]

watch part 2, where I address that point

[Kl0kw3rk]

This video is what happens when you have no education.

[mr1001nights]

Exactly: Education is a system of imposed ignorance

[jwein8282000]

LOL , When was this written? 1845? There is this thing called the futures exchange, which sends future price signals. So company A knows what company B knows.

[mr1001nights]

Actually future contracts have existed since the early 1700s. Currently they account for a small % of fin. market transactions&by no means eliminate hierarchical&competitive informational deficiencies, nor overall uncertainty about prices&supply/demand conditions (rooted in the struggle between labor and capital) Actually, often the reduced uncertainty gained in future contracts introduces other uncertainties, like massive speculation or the (traditional) failure of 1 side to honor the contract.

[Austrolibertarian]

Hierarchy causes booms and busts? The Keynesian explanation based on consumption makes more sense than whatever you're talking about. The boom and bust cycle occurs when capital is funneled into areas where it would not otherwise flow due to lower than market interest rates, i.e. malinvestment.

[destructicon500]

What does tech savvy have to do with being a Marxist?!

[brownie1982ad]

@tothemax01 Communist manifesto is not Marx's main work. Kapital is.

[HoGraz]

@tothemax01 Well you know we could at least get rid of things like DEBT finance which is a way to hold you down.

[themaniusedtob]

vote for mr1001nights for president

[TheSAMathematician]

@Austrolibertarian Hayek was even better.

watch?v=d0nERTFo-Sk

provides a basic outline of both Hayek and Keynes.

[tothemax01]

As the resources (capital, labour) leave the original productive concerns, things start to crumble - prices start to rise, jobs start to get laid off, credit starts to tighten, some businesses go under etc etc and so proceeds the snowball. We have just seen one after all. Then after all the garbage has collapsed via bankruptcy, we start again.

So stop reading that dog-sh!t and start reading something educational, dipsh!t.

[tothemax01]

Since non-spare resources are being burned, these resources have to come from somewhere - and are inevitably transferred from existing profitable companies to lesser-so ones (as money becomes more available and thus cheaper and thus lower rates of return are still profitable), and are also inevitably squandered with consumer credit (read: housing).

[tothemax01]

Regarding the latter: In a system where there is a constant stock of money, any money saved constitutes an abstention from a consumption of resources, and any of this money lent out via real loans - is an allocation of those spare resources for production. When banks issue money-substitutes (electronic accounts etc) in excess of this money (via false loans), this false credit is then used by companies to acquire resources in excess of what the market would otherwise allow.

[tothemax01]

So, here is the correct (not that you like the concept of 'correct') answer to the question "what causes the business cycle": Central banking and legalization of fractional reserve banking. The former is Marxist (number 5 in communist manifesto), the second is fraud. The former prevents a free-market - anyone who things that a market is free when something as critical as the interest rates of money is beyond its control - is insane.

[tothemax01]

Marx already laid out the process, you say? I have read the communist manifesto, these things were TRIED. It is indicative of the leftist mentality when they follow the following logic: method X produces result Y, X is done, Y didn't happen, therefore X was not done - a blatant 0=1 logical fault. So, leftist, how do you answer the fact that centralized economic calculation is impossible? How do you answer the biological fact that people are not equal? With obscurantism non-answers, no doubt.