The magic of capitalism

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cassowary
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Re: The magic of capitalism

Post by cassowary » Thu Feb 27, 2020 9:28 pm

neverfail wrote:
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: )
I agree. That is why Trump is slightly protectionist. Protectionism will result in higher wages for the low skilled workers. That is why (or at least one reason) why America's lowest strata showed the highest gain in wages. The price you pay is higher costs for the consumer.

It is still wealth transfer - from the consumer (with the richer ones paying the lion's share) to the poorest workers. But I approve. That's because the workers are being rewarded for doing work. They are not getting handouts. Work gives them dignity.

But this strategy is only practical for large countries like the US. It is not for Singapore or Australia.
The Imp :D

neverfail
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Re: The magic of capitalism

Post by neverfail » Thu Feb 27, 2020 10:39 pm

cassowary wrote:
Thu Feb 27, 2020 9:28 pm

I agree. That is why Trump is slightly protectionist. Protectionism will result in higher wages for the low skilled workers. That is why (or at least one reason) why America's lowest strata showed the highest gain in wages. The price you pay is higher costs for the consumer.

It is still wealth transfer - from the consumer (with the richer ones paying the lion's share) to the poorest workers. But I approve. That's because the workers are being rewarded for doing work. They are not getting handouts. Work gives them dignity.

But this strategy is only practical for large countries like the US. It is not for Singapore or Australia.
Well put Cass!

Lacking the "critical mass" size of the USA we of course need to trade internationally in order to prosper. Singapore even more than Australia for reasons so obvious they need no explanation.

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cassowary
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Re: The magic of capitalism

Post by cassowary » Sat Feb 29, 2020 11:28 pm

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: )
Thanks. That’s why I support capitalism. It will improve people’s lives.
The Imp :D

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Doc
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Re: The magic of capitalism

Post by Doc » Sun Mar 08, 2020 11:27 am

cassowary wrote:
Sat Feb 29, 2020 11:28 pm
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: )
Thanks. That’s why I support capitalism. It will improve people’s lives.
Cass this should be interesting to you. He gives a very good definition of what Socialism is:

“"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 » Mon Mar 09, 2020 2:51 am

Doc wrote:
Sun Mar 08, 2020 11:27 am
cassowary wrote:
Sat Feb 29, 2020 11:28 pm
]

Thanks. That’s why I support capitalism. It will improve people’s lives.
Cass this should be interesting to you. He gives a very good definition of what Socialism is:

Why are you guys spiritually marooned back in the Cold War era?

Don't you realize that the World has moved on from that since the fall of the Berlin Wall?

Why do you live in the past?

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Doc
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Re: The magic of capitalism

Post by Doc » Mon Mar 09, 2020 8:06 pm

neverfail wrote:
Mon Mar 09, 2020 2:51 am
Doc wrote:
Sun Mar 08, 2020 11:27 am
cassowary wrote:
Sat Feb 29, 2020 11:28 pm
]

Thanks. That’s why I support capitalism. It will improve people’s lives.
Cass this should be interesting to you. He gives a very good definition of what Socialism is:

Why are you guys spiritually marooned back in the Cold War era?

Don't you realize that the World has moved on from that since the fall of the Berlin Wall?

Why do you live in the past?
Lets see Twitter censors a journalist because he posts a photo of a rich guys home that did the same thing to James Carvel but did not get censored.

And you say communist/socialist authoritarianism is a thing of the past? Really?
“"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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