Economics 101 with Glenn Beck: The Kondratiev Wave and the Value of Loss in Capitalism

Capitalism is a profit and loss system. Profit rewards good ideas, good management, satisfied customers, and reasonable risk. Loss punishes those who take foolish risks, manage badly, abuse customers, etc.

Loss often saves companies and jobs. When the government bailed out the airlines decades ago, they still went bankrupt did they? But after they did the airlines reorganized and did better. Some airlines went under and they were bought up by the good ones so parts of those companies were preserved. When Studebaker went under the good parts of it were bought up. If GM had been allowed to reorganize under bankruptcy or if the good parts of GM would have been bought up the company would have relaunched itself likely better than the position it is in today.

On the long-term macro-economic scale, the government, Keynes, and socialist/progressives try to stop that wave or its impact; doing so is often foolish and damaging to an economy in the long-term.

Government tries to prop up the economy in the down cycle or during recessions by spending and rewarding loss with bailouts so that the utility effect of loss isn't allowed to progress as it should. The ill-conceived stimulus package is an example, while a small percentage of it was helpful, most of it was good money after bad.

Glenn also talks about how capital and investments go where they are treated well. China has lower corporate taxes and capital gains taxes than the United States. China also does not have a problem with political ideologues bent on punishing wealth.

Category:

Education

Tags:

• Beck
• economics
• Kontratiev
• capitalism

[odddreams]

OMG! Glenn Beck is praising China??  He wants us to be like China?? I guess hell has frozen over.

[TalkerOne]

@odddreams He did not say that we should be exactly like China, what he is saying is that China is using some of the smart market based economic policies that built us up before the USA started abandoning those policies.

[BaseOfLiterature]

"Conservative cites Soviet socialist economist"

[idicula1979]

@TOC359 To all of you who want to swicth to the gold standerd I ask you this how much gold would you pay for a simple sandwhich, and at that rate how fast will you go broke and destitute. You may think what you think about the economy is basic economics 101, I would say it is old school economics as in hide your money in your matress old school.

[TOC359]

Glenn was right about buying Gold....maybe we should listen to him......

[yaahme]

Glenn Beck has got this Kondratiev Wave and the connection here exactly correct.

Beware of the commies at home and abroad wanting to put down capitalism and America!!!!!!!!!!!!!!!!!

[WiseOneNoDrugs]

Most honest thing on TV? All a HUGE LIE. See "Fall of the Republic" on youtube.

[ChocolatePoop1301]

@DisturbedHavok I never said that Kondratiev dying meant he was right by itself, but he was right. You're basically supporting government manipulation of markets by refuting his research.

[ChocolatePoop1301]

@DisturbedHavok you said "because they are in a lot of products now." Just restating your words. Being in a lot of products would increase demand, therefore supply and demand are changed. I'm not debating if he was right or not, just pointing out you contradicted your own argument. I don't really care what he said, because he's half crazy/ half sane and I don't have time to weed out the nonsense. If and when I do watch him it's like all of FOX News - purely entertainment.