sonofccn wrote:
Who is like God arbour wrote:
- Let me refresh your memory: Your first sentence was:
- What is best for the individual is best for Mankind because Mankind is merely a way of referring to the individuals, all six billion of us.
Yes. There is no "Mankind" in any meaniful sense, and I believe free people making thier own decisions will ultimatly lead to the best results. That doesn't mean mistakes won't be made however.
And as I have shown, it is not good for all, if everyone is doing, what would be good for oneself. It's not a mistake, if one does, what is good for oneself, but, because all are doing, what are good for themselves, it can - under certain circumstances - be bad for all. It seems, as if you have not understood the principle of a rationality trap. But I don't know, how I have to explain it else to you.
sonofccn wrote:
Who is like God arbour wrote:
- That's funny. I have always thought, that economics is done by human beings and that it is their greed and ruthlessness, that is especially promoted in a capitalism economy, which promotes competition, that leads to the disadvantages, the whole majority of mankind has to bear for the good of a minority.
- Free market is no more prone to human error then any other form so claiming that humanity makes mistakes and therefore free market is at an disadvantage is a mistake.
- You have yet to prove Free market causes more disadvantages then other systems.
I have already explained, that real free market results always in monopolies because, sooner or later, all competitors are squeezed out of the market. That means, that competition will result sooner or later in non-competition. There will be one company in an economic niche which will have no competitors and, if it offers goods, which are essential, can dictate the prices. Even the USA knows that and has turned its back on a real market economy by creating antitrust agencies to prevent, what is the logical result of a real free market.
Free market means also that companies are independent. But in a modern and globalised economy, no company is really independent. As we are seeing now, the failure of some companies can plunge the whole economy into chaos and, when it comes down to it, the community has to bear the risks. The now 800'000'000'000 USD are, when it comes down to it, taxpayers' money.
Free market is a wastage of resources because companies aren't working together although they are doing all the same and could save resources, if they would work together if the have the same goal.
sonofccn wrote:
Who is like God arbour wrote:
- Wrong with this is - among other things - that, as you have said yourself, humans are not perfect and will make mistakes. What would have happened, if such a mistake, a wrong decision, would have resulted in the obliteration of mankind?
You can't get ride of risk, so yes there is a chance someone could start nuclear holocaust. The alternative would be to invite the invasion of less friendly nations so which is more preferable to you? The slight risk of total destruction or the very likely risk that should you disarm you will be conqured?
Who is like God arbour wrote:
- Instead of an arms race, as recent history has shown, diplomacy and cooperation is a better way to resolve misunderstandings and sort out differences. But that is a lesson, the USA has, as it seems, still to learn.
To quote you there is so much wrong with this I don't know where to began but I'll attempt.
- I have news for you. Most nations on this world are run by evil men and just as you could not reason with Stalin or Hitler you can not reason with the leader of N. Korea or Iran without the threat of force.
- The latter half of the 20th century and the early 21th have blanantly shown that diplomacy is virtually useless, N. Korea develped nuclear weapons and Iran is running headlong towards them.
- The only reason the world is stable as opposed to it's normal state which is chaotic is because the United States spends a large,through in my opinion not large enough, amount of cash to maintain the greatest army Earth has ever seen and uses it for the improvment for all.
- Germany could learn a lesson from the US, as could the rest of Europe, and start building armies again. Okay the United Kingdom does have a decent armed forces, so to be clear I'm not refering to them in that statment through they could undoubtably build a larger one.
Do I understand you correct, that you think that the only alternative to having nuclear weapons would be an invasion (or a war)?
If that is so, I don't understand, why you can't understand, why nations (Iran, North Korea etc.), who are threatened by the USA are wanting their own nuclear weapons.
I understand, that it is a guarantee for sovereignty. No nation, that has nuclear weapons, will be attacked.
But that is exactly a rationality trap. From the viewpoint of each nation, it is the only and logical conclusion. But it leads sooner or later to nuclear weapons for all nations.
And that's exactly what we don't want. And how can we achieve our goal? By making nuclear weapons expendable. And we can do that, if we show all nations, that they won't be attacked because they have another opinion than we have.
The USA is making exactly the opposite of that and with that is fueling the need for nuclear weapons.
But I won't debate that point further. As I see, there are enough, who are arguing it already.
sonofccn wrote:
Who is like God arbour wrote:
- Ever heard of the Long Depression or the Great Depression?
No I had not heard of hte long Depression, I thought all economic problems were refered to as Panics before the 30's era. Yes I have heard of the great depression through it was not caused by people saving and not spending as far as I know. However what is the point? Free market isn't perfect and yes you have down cycles, some quite sever but I don't see what this proves.
Read the sources, to which I have linked.
Dramatic drops in demand and credit were one cause for both depressions. But that was not the point. It was merely another example to illustrate the rationality trap:
- Increasing saving (or "thrift") is obviously good for an individual, since it provides for retirement or a "rainy day," but if everyone saves more, it may cause a recession by reducing consumer demand.
You have doubted that everyone will save at the same time and have argued that while some are saving others are spending what they saved be it for a new car, bigger house etc. In a depression, the majority will save and, what the minority is spending, is not enough to prevent a recession.
sonofccn wrote:
Who is like God arbour wrote:
- The problem is, that not only the company will have problems, but the whole economy. The whole industry depends on energy - and oil is predominantly an energy carrier. If there is no oil and no ample alternatives, not only the oil company will suffer, but the whole industry and with it the whole economy and, when it comes down to it, innocent people.
Yes. You would have another Great Depression, fortaunces would be lost and people will suffer but they will survive and prosper. Just as people lost, from the rubble new fortuances will be made. I didn't say I wanted this to happen only that if the worst came to worst it owuld be better for people to be burned and learn thier lesson and grow up then being babied thier entire lives by nanny government.
Who is like God arbour wrote:
- That's the problem in a globalised economy, as you are seeing in the current financial crisis. According to you, the banks should go down and the state is not supposed to help them. But that would mean the collapse of the whole banking system. That would be a catastrophe for the whole economy and could result in the insolvency of your employer and you, although you have nothing to do with the decisions, that were made by some bank manager, could loose your job. And that wouldn't only happen to you, but to millions. Please explain me, how that can be good for mankind.
It would be better in the long run because the system would have been corrected, the mistakes,human error eliminated in the only fair and unbias way. Yes it would be bad, and no I don't wish it on anyone but in the long term man would survive and prosper off of the incident.
And what is with the innocents, who haven't made mistakes but are suffering nonetheless?
While you think, it is justified to intervene in a sovereign nation because there is a dictator, who violates what we think are human rights, you are saying at the same time, that it is okay, if millions starve to death because the decisions some manager in western worlds are making to heighten the profits of one company and their owners or common stockholders. Because that is exactly what happens for the time being as a result of free market economy. For most people it is not only a question if they loose their job or home. Their live is on risk.
All that starving people could have contributed to mankind. There could have been geniuses, who could have advanced makkind. But because we have let them die, we will never know. That's another example, what I mean with wastage of resources.
Excuse me, but I don't really understand your inherent logic.
sonofccn wrote:
Who is like God arbour wrote:
- No, that is not what I have said. I don't think, that the Government body should dictate to the companies to invest in alternative substances. I think, that the companies should do it by themselves and that they should cooperate when doing it.
You do realize in this case your in the govermental role and telling the companies what they should do, invest in alterantive fuels, and get angry that they are not doing it. You believe you know what is better for them then they do, a most curious form of thought. So I have to ask, what would you do to encourage this investing in technolagy companies have discarded as a waste of time.
Excuse me, but I'm not sure that I understand, what you are saying.
I meant, that, if companies would work together to reach a common goal, there would be no need for state intervention.
It is unnecessary that several companies are doing research on one and the same substance when they can do it together. That would also mean, that all cooparating companies would share the profits, they are gaining from said substance.
The alternative now is, that several companies are investing huge amounts in the research but all are doing the same research parallel. When one company has a break through, it will patent it and the investmenst of all the other companies is lost. That's again another example for the wastage of resources in a free market economy.
sonofccn wrote:
Who is like God arbour wrote:
- But it is better, when they are cooperating and thus sharing their expenses than if each company is doing research alone and in the end all companies are doing research parallel in the same field because they are thinking, that it is the most promising. If they are sharing their funds, it is easier possible to do research in different alternatives and still save money.
In this case the company would be lossing money since it would get less profits,therfore less incenitive to create. Ergo a nation that favors/forces this will almsot certainly lag behind in development of whatever the companies were supposed to invent be it a new fuel or a whatever.
No, see above.
- The nation would loose in every case. All the other companies, who have conducted research are now at least weaker, if not inslovent, because they can not make profits because the one company, who has had - maybe per accident and not per cunning - first a break through, has the patent rights.
- In a globalised economy, the profits of a company are not necessary the profits of the nation.
sonofccn wrote:
Who is like God arbour wrote:
- That assumes, that a manager acts long-term logical.
If he didn't his company would collasp and would be absorbed by bigger better companies.
That's a circular argument. The manager, who don't consider the long term effects of his decisions don't care, what happens with the company in a long time.
But the heirs of the owners or common stockholders and the salaried personnel will suffer and, under certain circumstances, it will have effects on the whole economy.
sonofccn wrote:
Who is like God arbour wrote:
- The problem is, that investments in the research for an alternative are bringing profits only, when the alternative is needed. A manager who knows, that there is enough for substance A until he retires, will not see any reason to reduce the digging of said substance, what would reduce the profits of the company and invest the so saved money in research, that will not result in profits while he is in office.
Since most owners of companies want it to continue after them, being the best that they could be, that alone would be enough to entince someone. Then there is also VP's who would then become the manager after the previous one left. It would be in thier best interest to invest in substance B to reap the windfall of thier foresight.
Most big companies are leaded by managers and not by their owners or common stockholders. Often, other companies are common stockholders, who are leaded again by managers. A manager is usually only interessted, what will happens to the company, while he is in charge and gets paid.
If common stockholders are natural persons, they often have not the ability to judge the work of their manager because they are no economists. They are not able to see, that, what a manager has done, is good for the company in the long run. Maybe they aren't interested in what is good for the company in the long run because they want profits while they are living. And they don't see the salaried personnel. They don't realy comprehend, that the suspension of staff, from which they have heard in TV, has anthing to do with the stock they have.
sonofccn wrote:
Who is like God arbour wrote:
- That's also a problem of the current western economy: The pursuit for fast profits. I don't know, what the media in the USA are reporting. But in Germans, that is diagnosed as one primary cause of the current financial crisis.
It is a factor don't get me wrong. People saw an opertunirty for profit and went for it, then the bubble popped. This problem was however caused by Banks being forced to perform actions that went against the profit motive, namely giving loans to people who could not pay them back. The banks, and other people, should not have exploited it but the goverment should have kept it's nose out in the first place.
Excuse me, but who has forced the banks to give people loans, who could not pay them back. It's the first time, I have heard such a thing.
sonofccn wrote:
Who is like God arbour wrote:
- No system is perfect. But in such a system, check and balance is possible and such wrong decisions are easier to prevent than in a company, which nobody controls.
You are correct, no system is perfect through you seem to require Free market to be. To move on you are suggesting that the Goverment body would be the more effiencent choice due to checks and balances. I'm afraid that just can't work. The goverment is a bloated, ineffecient, unfocused mess facing a multitude of problems. The commitee has no actual investment in what they are doing, it's not their money their spending. So they have no incentive to be effiecent because there is always more tax dollars to spend.
Second the aformentioned corruption of pursuing dead ends for personal gain,providing no service but exploiting the common man, which once again he is selling your money not his so why should he care.
Third goverment is much more concerned with "instant profits" then companies and since perform very few duties that can be rated and weighed like a company does panders to the voting public to win votes. So they can pursue a dead end just like before but this time becuase people want/think it's the correct path. To restate myself the commeetie doesn't care, it is not there money they are spending, and those involved get reelected for it.
An example of both cases would be the Corn biofuel stupidity. The world couldn't grow enough corn to fuel America's current demands let along any growth yet we embarked upon it because... well no there was no rational reason for this.
The goverment has limited accountablility. It's hard to displace politicans who promise the moon and the stars and who always place the blame on never having enough funding. A case would be the US's public education system. A corrupte, nigh useless institution that has reduced public schools to free baby sitting services for kids ages 5-18. The response? Politicans clammor for even further funding despite the ungodly sums already spent per student.
The company spends it's own money. If it follows the follows the populare but useless idea track it will cease to exist and it's owner will end up in a cardboard box under the freeway. Since he does not want this he must always invest in the profitbal line. The option that promises him survival and he must do it constantly, forever until the end of time unless he wishes to perish. That is checks and balances.
You have again misunderstood me.
I have already said, that I don't think, that the government is supposed to do economic.
I argue for a system, in which not economic is not done by competition but cooperation. If there is only the government, than there is no cooperation.
I think, that companies can work together and can still make profits. Some companies will have surly less profit if they are can not follow their goals by ruthless cut-throat competition. But they will still have profit. And they will employ employees. And the employees will get theit fair salary and will be able to buy consumer goods, what will advance the demand and will advance the economy. There is no need to make huge profits, from which only a minority will really benefit and the majority will have nothing.