U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Politics and Other Controversies
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-25-2012, 05:32 AM
 
20 posts, read 18,237 times
Reputation: 12

Advertisements

It seems Euro-zone is planning to to replace its industrial policy with financial policy: Generally, Industrial capitalism was based on increasing production and expanding markets, it will profits to build more factories, buy more machinery and hire more labor. I think this may not happens under finance capitalism. Under this Banks lend out their receipt of interest, fees and penalties in new loans.

What are the + and - under these policies? How ppl will get benefits from financial capitalism, generally run by the central banks?

Please discuss on financial capitalism?
Reply With Quote Quick reply to this message

 
Old 04-25-2012, 05:37 AM
 
Location: Hoboken
19,891 posts, read 15,766,763 times
Reputation: 3123
Your premis is a fallacy.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 06:08 AM
 
20 posts, read 18,237 times
Reputation: 12
So do you think Euro is not really in financial turmoil? and is it not in debt crisis recently? Is it Euro central bank is not funding to those crisis countries?. Don't you believe that Europe's finance ministers in the last approved a rescue package worth €750 billion aimed at ensuring financial stability across Europe. Is it wrong how IMF and other central banks are involving to rescue EZ crisis?
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 06:21 AM
 
697 posts, read 1,119,944 times
Reputation: 442
Just like the US, we Europeans can not compete with China, India and the emerging world's cheap labour costs and overheads in respect of cheap mass produced goods.

Any manufacturing investment will most likely be in areas of hi-tech manufactured goods and luxury goods. Indeed the new emerging rich in China are big consumers of European luxury goods and like America we still retain some advantage for the time being when it comes to more advanced technology.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 06:36 AM
 
Location: Portland, Oregon
7,091 posts, read 10,488,886 times
Reputation: 4104
Firstly, we have no idea what changes they are making...no information has been provided as to what is changing.

Secondly, the contrast of finance and industrial capitalism exists only in Marxism. These are vaguely defined terms at best, with little that actually differentiates them besides subjective opinion. It also lacks substance in modern terminology as it is over a century old and was used by Marx largely as the vague sign capitalism was about to end.

It makes it hard to discuss even what something is, let alone contrasting, when every part is more mobile then jello on a hot slanted surface.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 06:59 AM
 
Location: Londonderry, NH
41,505 posts, read 49,557,510 times
Reputation: 24548
We are suffering from our adoption of "Financial Capitalism" in the 1980's. Manipulating money may create "profits" but does not create any wealth. Our mortgage bubble is a fine example of "FC". Financial Capitalism is just another term for FAILED CAPITALISM.
[SIZE=3] [/SIZE]
Britain made the same move in the 1960’s and has suffered from a slow growth and high unemployment economy ever since. The rest of Europe, except the Swiss that have never been anything but a FC economy, would be insane to allow their financiers to impose this debt slavery on them. Unfortunately, as everywhere else, it seems those that have the gold make the rules so they can collect and horde more gold.

IMHO anyone that fails to install countervailing tariffs to counter the third world slave shops and crony capitalists are cutting their own economic throats. To be a “Free Trader” in a world of Mercantilists is being both stupid and suicidal in the name of Economic Purity and a victim of Ideology over reality.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 07:17 AM
 
697 posts, read 1,119,944 times
Reputation: 442
There are two main schools of thought when it comes to current economic thinking in relation to recession.

The first is Keynesian Economics which in very basic terms uses large public spending projects (schools, hospitals, roads, transport infastructure etc) through taxes to kick start the economy, with the workers employed in such schemes in turn buying good and services with their wage packets thereby creating demand. Some people have claimed the current US Administration has been using elements of Keynesian economics, whilst others claim America already based much of it's economy on the demand created through it's giant military industrial complex.

Keynesian economics - Wikipedia, the free encyclopedia

The second school of thought is Monetarism or Supply Side Economics 'the Chicago School' which advocated creating demand through the supply of money and was popular during the 80's with both the Reagan and Thatcher administrations. Supply side economics creates demand through low taxes, less regulation and the encouragement of investment by the less heavily taxed private sector in order than jobs will be created, and that the money that would have gone to Government will instead be spent in the economy, whilst at the same time increasing the supply of goods and services to the consumer.

Supply-side economics - Wikipedia, the free encyclopedia


Keynsian econmics had traditionally been linked to large government and the socialist left, whilst monetarism has traditionally been seen as more capitalist and more in the spirit of economists such such as Adam Smith and laissez faire type free tade economics.

Both John Maynard Keynes (Keynesianism) and Milton Friedman (monetarism) were very clever economists, whilst both economic systems have their supporters and detractors.




Last edited by Mulhall; 04-25-2012 at 07:45 AM..
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 07:22 AM
 
Location: Londonderry, NH
41,505 posts, read 49,557,510 times
Reputation: 24548
Mulhall - Please continue.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 07:49 AM
 
697 posts, read 1,119,944 times
Reputation: 442
Quote:
Originally Posted by GregW View Post
Mulhall - Please continue.
Very basic analysis, but it's the gist of the two main post war schools of thought on the subject.
Reply With Quote Quick reply to this message
 
Old 04-25-2012, 07:54 AM
 
Location: Londonderry, NH
41,505 posts, read 49,557,510 times
Reputation: 24548
Sorry for the comment but your first post opened only to the end of the first mention of Keynsian Economics.

I agree with your descriptions. I am a dedicated Keynsian because, as I never have been and probably never will be, wealthy, I believe in economic stimulus by government spending on non- military public works.

The Chicago school blather is just a complex rational for personal greed and economic stagnation.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Politics and Other Controversies
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top