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RE: Why the end of the market economy is inevitable.

in #economics7 years ago

Most companies have profit margins under 10%. Let me know if you ever learn of a business that makes huge profit margins off it's workers that can be started up for under $1 million.

It would be profitable for thugs to end capitalism and then possibly enslave or just kill you and rob you if profit is their main motive.

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So, your solution is more of what got us here?

Rob the bots and move towards manual curation and quality leadership.

And in real life?

I think we need to be much less wasteful. We are destroying $10,000 houses that would cost $50,000 to build in the USA and instead building million dollar houses. We also waste money on new cars and throw out like half our food.

We could also boost productivity and although I am not onboard with the brok hippie stuff if we are going to have trees in our yard they may as well be fruit trees.

The market is what causes this wastefulness.

Without market economics we would have a lot less so I guess there would be less waste.

How so? If your goal is to profit, why would you ever want to be wasteful? Wastefulness is just lost profits.

To decrease supply to increase price/exchange value.

1/3 of food goes to waste.

5 houses to every homeless person.

The most striking example of market restrictions of supply is the diamond industry.

Those shiny rocks sure are abundant, but for some reason expensive.

https://priceonomics.com/post/45768546804/diamonds-are-bullshit

Scaricty is enforced because it keeps class society intact.

  • Food goes to waste because of consumer wastefulness, not producers (unless you count for the produce that is unfit to be sold).
  • 5 empty houses to every homeless person. Not five ownerless houses to every homeless person. Property is very, very rarely not owned by someone.
  • Scarcity is not enforced by anyone, but is rather a business choice made by retailers/producers. Even then it is not a prominent thing to do due to modern production efficiency.
  • And yes, diamonds are bullshit.