(a) There is a vast difference between the state-finance sector, and the entrepreneurship-venture capitalist sector. There are severe issues with the state-finance sector. they have… https://www.facebook.com/permalink.php?story_fbid=284251642171733&id=100017606988153
Source date (UTC): 2018-08-22 14:59:19 UTC
Original post: https://twitter.com/i/web/status/1032281065443020800
WHY NO VERSION OF SOCIALISM IS POSSIBLE
[ KEY LESSON: HUMANS SEEK RENTS over productivity. The only way to obtain those rents is indirectly through market gains. And of all the goods you can… https://www.facebook.com/permalink.php?story_fbid=284215715508659&id=100017606988153
Source date (UTC): 2018-08-22 14:01:16 UTC
Original post: https://twitter.com/i/web/status/1032266457239965697
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.htmlMORE DISMANTLING OF SOCIALIST FALLACIES
(a) There is a vast difference between the state-finance sector, and the entrepreneurship-venture capitalist sector. There are severe issues with the state-finance sector. they have everything to do with credit and political manipulation, and nothing to do with entrepreneurship and investment. The injustice is largely in credit sector in the usa, not the entrepreneurial.
(b) The stock market provides a lottery effect for entrepreneurs, and access to capital by which large companies can offload research and development, and reward innovators. There is a reason that the stock market is in the USA and the Bond market in London, and heavy industry in Germany, and military industry in Russia: risk-reward.
(c) The venture capitalist industry is marginally profitable, but when it is profitable it is very profitable. However, because of this lottery effect, many, many companies are started and much innovation happens. Meanwhile calcification occurs at established companies as rents are maximized by employees, management, unions, creditors.
(d) —“You leap to the conclusion that the best capitalists must innovate, which is an incorrect leap. “— Not sure if you’re being dishonest here but I am saying ALL entrepreneurs must innovate, and all capitalists (financial sector) must constantly search for innovators. The reason is that it is nearly impossible to preserve capital at regular rates of inflation. Today, speculating on commodities and investing in property and investing in consumer and business debt provides the principle means by which the financial sector prevents LOSSES. So this is the problem with leftist thinking (people who have never had money or responsibility) it’s that the central problem of making money is entrepreneurial. The central problem of HOLDING money is preventing losses from the continuous process of inflation the government uses to maintain employment.
(e) —“What has the capitalist actually “produced”? — You are falling into the error that production has value rather than organizing people to invest, produce, distribute, and exchange. In other words, what do distributors produce? What do retailers and wholesalers produce, what do investors produce, and what do owners, management and staff produce? the answer is that all of us transform state, but only the LEAST SKILLED transform materials. Meanwhile all of the rest is transforming TIME using incentives, using opportunity and money.
(f) People aren’t interested in just profits. There is no evidence of it. Entrepreneurs and venture capitalists are interested in doing good for family, friends, customers, and society, because status signaling is the only meaningful reward once you have wealth.
(g) as far as I can tell it’s not capitalists (entrepreneurs) that are parasitic but the financial sector, politicians, and unions and socialists.
IT is very clear to any of us who have had wealth and responsibility how childlike and victims of Dunning-Kruger overconfidence that well intentioned fools are.
It is very very difficult to build a company, you do it at huge risk to yourself, your health, and our family and your investors. And almost all of them fail. The lottery effect of a market encourages people to take risks and fail. If you eliminate the lottery effect of the market then there is no incentive to take risks given the rate of failure.
What % does your supermarket make? 1% Your gas station? .2%, most businesses? 8%. What is the rate of inflation? 3+%. A very, very, small number of outliers
PROFIT BY SECTOR
Here is a list of profitability by sector:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html
NET MARGIN COLUMN
The ONLY high profit businesses are in Finance, Banking, and Power.Updated Aug 22, 2018, 11:07 AM
Source date (UTC): 2018-08-22 10:59:00 UTC
WHY NO VERSION OF SOCIALISM IS POSSIBLE
[ KEY LESSON: HUMANS SEEK RENTS over productivity. The only way to obtain those rents is indirectly through market gains. And of all the goods you can produce, a one child policy for the unproductive provides the highest returns. Why? Because people CAN act on DIRECT rent seeking, and people CANNOT act on indirect rent seeking (market returns). ] In other words, socialism is the ultimate selfishness.
LIST
1. The investments are undecidable without monetary interests (it’s impossible) so that in the absence of money and rule of law we see discretion.
2. The investments are minimal because in all organizations, members seek to maximize rents.
3. Because the incentive to maximize rents is superior to the incentive to invest, corruption evolves instead of production.
4. Because of all of the above, the general standard of living of the people declines relative to those who practice markets.
5. Because of the difference in standard of living force must be used to retain the population(defectors) OR force will (in the past at least) be used to prevent invasion by defectors.
6. Socialists are simply seeking non-market rents. The way to obtain market premiums is to exit the company in favor of a company that pays more.
7. If you cannot exit the company and obtain a premium, then you are already maximizing your income.
8. Engineers (employees) that produce outsized returns provide those returns to the entire company, allowing increases in rents by all employees.
9. Investors require high returns for the simple reason that the vast majority of their investments fail. The portfolio strategy is to lose most, make good returns on a few, and have one windfall. This is also how the movie business, and publishing business work, with outliers paying for all others. (this is why redistribution – exists under capitalism: unpredictability)
10. Engineers with ideas that produce outsized returns leave the company to produce the product on their own. If they cannot produce it on their own then they means that the value was in the organization not the individual since the value is in organizing and creating investment, production, distribution, and trade.
11. There have been rare cases where individuals are not compensated (windshield wiper delays) but the vast number of individuals who contribute returns venture on their own – and don’t otherwise, because they in fact cannot produce the product.
12. As an aside, corporate democracy is absolutely ridiculous. All the evidence illustrates that leadership matters, and as someone who has built some very large consulting companies, specializing the creating consensus in companies, democracy in companies would be as catastrophic as it is in politics, and only lead to the same corruption. Someone DOES know the answer in the company. The primary function of Management Consulting Companies is to survey what everyone in a company knows, to identify which ideas have some potential given the available financial and market resources and then write an argument and develop consensus in the company because of it. Why? Dunning Kruger: everyone in a company (any organization, and in society) VASTLY overstates their knowledge except Generals, CEOs, and Presidents. Any competent CEO or general will say the same thing: I am only doing this job because I can’t find someone who will do it better, or I promised some people I would do it until I succeeded or failed. That’s it.
I could go on but basically redistribution occurs through success of organizations. The problem is simply the one eugenicists warned us about, and economists acknowledge only behind closed doors: that the central problem for any polity is reducing the size of the unproductive classes to those who have been the victims of accidents, rather than increasing the size of dependent classes until their rents are maximized, and investment and risk are no longer possible on the one hand, and ability to absorb shocks is no longer possible on the other.
HUMANS SEEK RENTS. The only way to obtain them is indirectly through market gains. And of all the goods you can produce, a one child policy for the unproductive provides the highest returns.
Why? Because people CAN act on DIRECT rent seeking, and people CANNOT act on indirect rent seeking (market returns).
This is why market economies succeed in vast improvement of lower class conditions more so than the upper classes (who are subject to constantly forced economic rotation.
While the reason socialist economies always fail, and always will fail is attributed to a lack of incentives to produce, and because the creation of incentives for corruption, and because
Very few companies last the lifetime of their founders and their children. And as capital is continually less important than rates of invention and innovation, this will continue. Wealth generally survives under three generations. And around 94% of wealth is generated by small and medium business entrepreneurship. And of that wealth a not insignificant portion is research and development that that is later acquired by larger companies with access to public markets.
The only thing we can do today is eliminate consumer interest on consumption (houses, cars, appliances), and cut the size of the unproductive classes by eliminating immigration extending work life by providing ‘retirees’ and ‘students’ with part time work, eliminating the obesity problem that limits people’s ability to work, and by culling the underclasses through one child policy.
Everything else is suicidal (Europe, Canada, and America), or destructive (brazil, india).
PROBLEMS WITH CURRENT MIXED ECONOMIES
The problem with current capitalism is that it is possible on the one hand to form unions that can extort from companies under collective bargaining (which is why companies left the USA), and on the other hand, it is possible for (a) investors to prey on companies at the expense of management and staff (this is easily fixed by prohibiting leveraged buyouts, and then legally limiting risk), and (b) we do not help companies adjust to shocks often enough (we should have helped hostess like we helped the auto companies), (c) we do not engage in enough private public ventures (like Tesla, which if successful directly or indirectly, will revolutionize transport by resetting the clock back 100 years), (d) we do not prohibit labor arbitrage (outsourcing production for the purpose of obtaining labor discounts), (e) and we conduct trade policy like everyone else, which is to attempt to restore technological leadership by ensuring that we are not behind (production of LED and other screens, and mass production of chips), (e) and eliminate corporate pensions (they are no longer possible) and centralize them (Singapore model), because they alter the pricing system such that products are decreasingly competitive. (and btw: eliminate government pensions as well.)
Source date (UTC): 2018-08-22 10:01:00 UTC
WHY INCLUDE ROTHBARD AND MISES WITH MARX AND MARXISTS?
—“Q: I’m unsure of why Curt Doolittle grouped Rothbard and Mises with Marx, unless they were actually faux anti-Marxists?”– Matthew Genack
Answer by Eli Harman
They weren’t faux anti-marxists. They were sincere anti-Marxists. But what they offered in its place was justificationary pseudoscience, same as Marxism, differing in the details and conclusions, but not fundamentally in the methods.
Source date (UTC): 2018-08-21 15:03:00 UTC
—“Economic protectionists (individual) embrace maximal trustlessness (trustless p2p trade system) in the form of atomic swaps (new tech). This is a form of ethnocentricity. Not permitting,… https://www.facebook.com/permalink.php?story_fbid=282305585699672&id=100017606988153
Source date (UTC): 2018-08-20 13:32:37 UTC
Original post: https://twitter.com/i/web/status/1031534469684097025
—“Economic protectionists (individual) embrace maximal trustlessness (trustless p2p trade system) in the form of atomic swaps (new tech). This is a form of ethnocentricity. Not permitting, via technology, predation on markets by non-interested (outsider, rent-seeking) third party (((middle man))).”—William L. Benge
Source date (UTC): 2018-08-20 09:32:00 UTC
—“Warfare and victory in this century will come down to planting this flag, not on the moon but earth: mastery of market fidelity”—William L. Benge
Source date (UTC): 2018-08-18 18:48:26 UTC
Original post: https://twitter.com/i/web/status/1030889173585149952
—“Warfare and victory in this century will come down to planting this flag, not on the moon but earth: mastery of market fidelity”—William L. Benge
Source date (UTC): 2018-08-18 14:48:00 UTC
—“What’s the unbiased pros and cons of socialism, communism and capitalism?”— Each proposes a MONOPOLY, just as the abrahamic religions proposed a MONOPOLY – all monopolies are bad (and all monopolistic arguments are false) The only possible economic structure is a Mixed Economy, and the only structure that every has existed at any scale is a mixed economy. The underclass requires redistribution because they have no ability to participate in the market. Labor requires insurance against the vicissitudes of manual labor, the clerical and managerial classes require commons in order to produce multiples, the professional and entrepreneurial class require property and rule of law in order to produce the voluntary organization of production, the financial and political classes need organization such that they can produce redistribution, insurance, and property rights, so that all the classes can function as producers and consumers and parents and elderly. THE TRUTH OF RULE OF LAW VS RULE BY DISCRETION(MAN) If you practice rule of law – meaning the natural law of torts (not legislation, which is not law, but either contract or command. And commands are not laws, but commands alone), then you will produce a mixed economy. If you practice discretionary rule or legislative rule you will produce failed attempts at the MONOPOLIES of communism (underclass) socialism (working class), or capitalism (middle and upper middle class). When instead we require communism (redistribution), socialism (production of commons), and capitalism (production of goods, services, and information) in EVERY economy. THE ASHKENAZI (Authoritarian) VS EUROPEAN (Rule of Law ) DEBATE 1 – Germanics (Masculine) : Rule of Law and Mixed economies. 2 – French (Feminine): Republican Socialism 3 – Ashekanazi (authoritarian): Communism, Libertarianism, Neo-Conservatissm. 4 – Ashkenazi-Russian-Chinese (Authoritarian) : Communism, Socialism. However, the Ashkenazi and the French are the intellectual vanguard of authoritarianism, having produced every variation from Rousseau to the Postmodernists, and Marx/Boas/Freud/Cantor/Trostsky/Lenin/Mises/Rothbard all the way to the Frankfurt school. While the french retaliated against the english use of empiricism with their nonsense rationalism, and the germans imitated Rousseau with their nonsense moralism, it was the Ashkenazi of Europe, Russia, and America, who weaponized pseudoscience and propaganda against western civilization by creating pseudoscientific cults with false promise of economic and political paradise just as they had done so in the ancient world with false promise of life after death. Every time you ask the question which is better you are demonstrating that you have been the victim of a pseudoscientific cult in the modern world, just as your ancestors were the victims of supernatural cults in the anceient world. The only economy possible is a mixed economy.