The magic of capitalism

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neverfail
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The magic of capitalism

Post by neverfail » Thu Feb 27, 2020 2:06 am

Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )

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Sertorio
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Re: The magic of capitalism

Post by Sertorio » Thu Feb 27, 2020 3:06 am

neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
Except that Cass believes that growth can be fostered by lowering salaries... :twisted:

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cassowary
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Re: The magic of capitalism

Post by cassowary » Thu Feb 27, 2020 3:46 am

neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
No no no. Capitalism will raise people's salaries. That's what I believe.
The Imp :D

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Doc
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Re: The magic of capitalism

Post by Doc » Thu Feb 27, 2020 4:00 am

cassowary wrote:
Thu Feb 27, 2020 3:46 am
neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
No no no. Capitalism will raise people's salaries. That's what I believe.
You are both right. Capital buys the machines that make workers more productive. More productive workers means higher wages can be paid, and generally is paid to retain them.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

neverfail
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Re: The magic of capitalism

Post by neverfail » Thu Feb 27, 2020 12:53 pm

cassowary wrote:
Thu Feb 27, 2020 3:46 am
neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
No no no. Capitalism will raise people's salaries. That's what I believe.
Over the past 120 years it seems to have my country no harm at all.

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cassowary
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Re: The magic of capitalism

Post by cassowary » Thu Feb 27, 2020 1:24 pm

Doc wrote:
Thu Feb 27, 2020 4:00 am
cassowary wrote:
Thu Feb 27, 2020 3:46 am
neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
No no no. Capitalism will raise people's salaries. That's what I believe.
You are both right. Capital buys the machines that make workers more productive. More productive workers means higher wages can be paid, and generally is paid to retain them.
Actually I was replying to Sertorio. His comment about lower salaries got left out,
The Imp :D

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lzzrdgrrl
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Re: The magic of capitalism

Post by lzzrdgrrl » Thu Feb 27, 2020 7:25 pm

I'll post this here as capitalism is magic, but government should do some things:
China’s stock market is the world’s best performer, thanks in part to massive fiscal stimulus in response to last year’s trade war and this year’s virus epidemic. That’s what governments are supposed to do in response to natural disasters, and the rest of the world should do the same thing.
State and market working together...... fantastic. Wonder what Bernie would think of this?....'>......
To be effective, emergency measures must be big, dramatic, and immediate. Emergency tax reductions, including a temporary suspension of social insurance payments by individuals and businesses, are the ideal measure. Forty-four percent of Americans pay no income tax, but Social Security contributions comprise 12.4% of income, split between workers and employers. The US Congress should authorize emergency borrowing authority to make up the difference in the Social Security Fund.
https://asiatimes.com/2020/02/g7-should ... -stimulus/
I have a certain notoriety among the lesser gods........

neverfail
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Re: The magic of capitalism

Post by neverfail » Thu Feb 27, 2020 7:44 pm

cassowary wrote:
Thu Feb 27, 2020 1:24 pm
Doc wrote:
Thu Feb 27, 2020 4:00 am
cassowary wrote:
Thu Feb 27, 2020 3:46 am
neverfail wrote:
Thu Feb 27, 2020 2:06 am
Average incomes in Australia today are seven times higher than they were in 1901. Environmentalists should note is that only some of this growth has come from increased exploitation of natural resources and damage to the environment (which is certainly something we need to correct).

No, the great majority of this growth has come from the magic of the capitalist system: improved productivity (the very magic Brennan is paid to promote). The average worker today can produce hugely more value in goods or services per hour than the average worker in 1901. Why? Because we’re healthier, better educated and more highly skilled, and we’re not only given far more equipment to work with, but those machines can do tricks that were never dreamt of a hundred years ago. And factories and offices are more efficiently organised.

That’s the capitalist magic of productivity improvement.

https://www.watoday.com.au/business/the ... 5440y.html
(That should gladden Cassowary's heart. :mrgreen: )
No no no. Capitalism will raise people's salaries. That's what I believe.
You are both right. Capital buys the machines that make workers more productive. More productive workers means higher wages can be paid, and generally is paid to retain them.
Actually I was replying to Sertorio. His comment about lower salaries got left out,
In agreement with rise in wages and salaries that comes with rising productivity - but it works both ways. With the rise of average incomes comes something just as beneficial - a rise in the purchasing power of the community at large. In turn their spending makes and keeps the production and distribution of consumer goods and services profitable thereby keeping the producers and suppliers in business.

(Well, that it how it would work in a "closed circuit" economy but these days we have the complication of a globalized economy. So a rise in average real disposable incomes these days would more likely help keep a factory in China in business than a factory in North America, Europe or Australia. Yet on a World scale the principle still holds good :mrgreen: )

neverfail
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Re: The magic of (soundly managed) capitalism

Post by neverfail » Thu Feb 27, 2020 8:00 pm

lzzrdgrrl wrote:
Thu Feb 27, 2020 7:25 pm
I'll post this here as capitalism is magic, but government should do some things:
China’s stock market is the world’s best performer, thanks in part to massive fiscal stimulus in response to last year’s trade war and this year’s virus epidemic. That’s what governments are supposed to do in response to natural disasters, and the rest of the world should do the same thing.
State and market working together...... fantastic. Wonder what Bernie would think of this?....'>......
To be effective, emergency measures must be big, dramatic, and immediate. Emergency tax reductions, including a temporary suspension of social insurance payments by individuals and businesses, are the ideal measure. Forty-four percent of Americans pay no income tax, but Social Security contributions comprise 12.4% of income, split between workers and employers. The US Congress should authorize emergency borrowing authority to make up the difference in the Social Security Fund.
https://asiatimes.com/2020/02/g7-should ... -stimulus/
Sound, sensible advice from Spengler (once again) and thanks for the quote and link lzzrdgrrl.

Managing a modern, private sector economy reminds me of tending a vineyard. Unless the vines are pruned in autumn after the grape harvest and other measures put in place to ensure the quality of the fruit remains high the vines will go to jungle and fail to produce fruit of sufficiently high quality and quantity to go to the wine press. Through lack of anything else in place with the power and disinterested sound judgement to do so; we entrust the approximate duties of the vine cutters, horticulturalists, fruit pickers and vineyard managers to government.

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Doc
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Re: The magic of capitalism

Post by Doc » Thu Feb 27, 2020 9:24 pm

lzzrdgrrl wrote:
Thu Feb 27, 2020 7:25 pm
I'll post this here as capitalism is magic, but government should do some things:
China’s stock market is the world’s best performer, thanks in part to massive fiscal stimulus in response to last year’s trade war and this year’s virus epidemic. That’s what governments are supposed to do in response to natural disasters, and the rest of the world should do the same thing.
State and market working together...... fantastic. Wonder what Bernie would think of this?....'>......
To be effective, emergency measures must be big, dramatic, and immediate. Emergency tax reductions, including a temporary suspension of social insurance payments by individuals and businesses, are the ideal measure. Forty-four percent of Americans pay no income tax, but Social Security contributions comprise 12.4% of income, split between workers and employers. The US Congress should authorize emergency borrowing authority to make up the difference in the Social Security Fund.
https://asiatimes.com/2020/02/g7-should ... -stimulus/
Perhaps it would be even better if western governments cut out the "middle men" all together.

https://fortune.com/2015/07/22/china-gl ... ent-owned/
China’s Global 500 companies are bigger than ever—and mostly state-owned
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

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