Globalization
POSTED BY: deepgirl187
UPDATED: Tuesday, August 26, 2025 22:20
VIEWED: 9221
PAGE 3 of 15
Quote:
Originally posted by SignyM:Quote:And this is exactly what I'm contesting because IMHO the market will SHRINK in the long run.
I think the point here is that the market WILL grow, which is the aim of free trade and in time the developed economies will want to buy things from places like the US.
Has nothing to do with how long we wait or "instant gratification".
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Always look upstream.
Then explain your reasoning.
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"at that point we can expect the 'Corporate Wars' to decide the big winners, and it might or might not include violence."
"Imperialism, the Highest Stage of Capitalism" Lenin
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"Global warming - it's not just a fact, it's a choice."
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I had added more to my post above.
I've tried to explain my reasoning several times already. The market shrinks because each time a "bundle" of money cycles through the economy, a certain portion of that money gets siphoned off into something called "profit". What happens to this "profit" is important to the economy. Let's say there is an average 10% profit, and in this case it goes into a mattress somewhere. That means each time the money is cycled through the economy, there is less and less money in circulation: $100B, then $90B... $91B... etc. "The market" shrinks simply because there is less and less money available to "buy stuff" with.
I know that profit doesn't go into a mattress... I'll get to that later but I need to know if you're with me so far.
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Always look upstream.
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Quote:
Originally posted by SignyM:
I had added more to my post above.
I've tried to explain my reasoning several times already. The market shrinks because each time a "bundle" of money cycles through the economy, a certain portion of that money gets siphoned off into something called "profit". What happens to this "profit" is important to the economy. Let's say there is an average 10% profit, and in this case it goes into a mattress somewhere. That means each time the money is cycled through the economy, there is less and less money in circulation: $100B, then $90B... $91B... etc. That inevitably shrinks "the market" simply because there is less and less money available to "buy stuff" with.
I know that profit doesn't go into a mattress... I'll get to that later but I need to know if you're with me so far.
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Always look upstream.
But this assumes that everyone who gains money by profit just sits and counts it like Scrooge McDuck. In reality if you just sit on money it becomes worthless (eroded by inflation.) To keep it's value the profit has to be reinvested or spent and when that happens it goes back into the economy.
"Profits" are somebody's wages. Now you could argue that it's not fair that some people have to work their assess of for "wages" and others can just live of their investments but that aside profits are spent.
IBM makes huge profits --- boo, hiss, fat cat corporate baskets.
except
40 something percent of IBM is owned by the California Teacher's union pension plan. So that profit is your old 3rd grade teacher's monthy check that lets her enjoy retirement. It's probably part of your 401K as well. When you retire (assuming you aren't stupid enough to hide your money in your matress) you will be living off investmant income. Those company profits will be your income.
Don't know what it's like here but in the UK most publically traded companies are effectively owned by pension funds.
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But as economic analysis shows the person who gains profit never invests or spends it all. And the more they have, the less likely they are to be ABLE to do anything with the bulk of it (unless they give it away, which rarely happens).
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"Global warming - it's not just a fact, it's a choice."
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Profit is not the same as stocks.
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"Global warming - it's not just a fact, it's a choice."
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Quote:
Originally posted by rue:
But as economic analysis shows the person who gains profit never invests or spends it all. And the more they have, the less likely they are to be ABLE to do anything with the bulk of it (unless they give it away, which rarely happens).
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"Global warming - it's not just a fact, it's a choice."
OK? Where is the money? Serously? If what you are saying is a fact where is it? Does Bill Gates have it under a tarp in his garage? I have trouble believeing it is not invested somehow. Even if you just have it in a checking account at a bank that money is being loaned out and used... don't believe Monty Python, they dont keep it in a shoebox under the desk.
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Quote:
Originally posted by rue:
Profit is not the same as stocks.
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"Global warming - it's not just a fact, it's a choice."
No it's the same as dividends. Which is what pension schemes try to use to fullfill capital requests because it keeps the principle invested and earning money.
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Quote:So if you're worth 100 billion, and inflation cuts it in half, you'd still be on top. Rich folk buy stuff to own, like real estate and companies. You seem to be talkin' out of a textbook on how it's supposed to work, Fletch. A lot of it does, but not all of it IMO.
Originally posted by Fletch2:
But this assumes that everyone who gains money by profit just sits and counts it like Scrooge McDuck. In reality if you just sit on money it becomes worthless (eroded by inflation.)
Economics is a science, staying at the top is a game.
Ve haf vays of makink you lose Chrisisall
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He doesn't divulge what he does with his billions. But generally, ultra-wealthy spend lavishly on things like homes, second homes and third homes around the globe, on private jets, and on acquiring more money-making investments - like corporations - which further concentrates wealth.
***************************************************************
"Global warming - it's not just a fact, it's a choice."
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