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Say's Law, simplified is this:
production cost (materials, energy, etc.) - wages - money supply = aggregate. The sum of an economy. The money supply without inflation or deflation will equal all costs of production. Everything that is produced can be bought. Profit extractions that are so high they aren't re-spent back into the economy upset the equation. Then everything that is produced can't be bought. Production slows or ceases.
We make up for the profit extractions with credit. Infusions into the money supply Credit reaches a ceiling where further credit can't be re-paid. Infusions into the money supply to make up for profit exractions slow or cease. Production then slows or ceases.
Say's Law doesn't address the structural requirement for continual expansion. It doesn't address that while all production can be bought, if Say's Law was adhered to, it sometimes isn't.
It doesn't address what happens when people feel they have everything they need and stop spending...as in Japan..Production then slows or ceases.
In a monastery, when we produce all we need, we stop work and stop production,. We enjoy the leisure time, and simply distribute the surplus until production is once again required.
You don't do it that way.. When production stops, and work stops because there is no need for additional goods to be produced, your distribution of required goods stops. The surplus isn't simply distributed until production is once again required.. What should be enjoyable leisure time becomes a personal economic horror known as unemployment..
Different economic system. Ours doesn't have your structural flaws.
Retired Monk - "Ideology is a disease""
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