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How does capitalism create more wealth? I'm asking this as a genuine question, not trying to be a smartass. Real wealth can only be created by labor and natural resources. A capitalist system doesn't make those anymore than any other system. Capitalism creates a "fake" wealth through usury, does it not? It's not tangible wealth. It's made up. It's only real on balance sheets because we consent to it.
If you believe that, then why don't you take the risk like companies do and start your own business. If you are unwilling to do that then what makes you think you have the knowledge on what it takes or the right to complain. You chose your path in life and must accept the results of your decision.
Of course that would be my personal problem, and is one example of a more common problem in which consumer spending prices out poor people at the margin.
Housing provides the best example I can think of off the top of my head - when rental demand exceeds rental supply, rents necessarily skyrocket. In other words, poor people can't afford housing precisely because non-poor people bid up the price.
Poor people have the right to choose a different path but instead they would rather stay with their decision, live with the results and blame everyone else just like Obama does.
Many more people COULD afford to buy, if tiny properties were available. So why does government prohibit developers from building and selling them?
I've been looking at micro-apartments for the past few days, coincidentally you have a thread on them and I can't but help to believe that the market needs thousands upon thousands of these units constructed across US cities to allow the lower-income or even just people who dont like large places to move in. Like I said in a earlier post, it could be a selective process, you could say you have to have a certain credit limit, or maybe you even have to pay your rent for 6 months at a time, but nonetheless these cheaper units are needed. I wouldn't mind living in a 300 sq ft unit, I often go to stores such as Ikea that have little units in them that show how large a 300 sq ft studio is and it should be doable for someone younger to live in.
I've been looking at micro-apartments for the past few days, coincidentally you have a thread on them and I can't but help to believe that the market needs thousands upon thousands of these units constructed across US cities to allow the lower-income or even just people who dont like large places to move in. Like I said in a earlier post, it could be a selective process, you could say you have to have a certain credit limit, or maybe you even have to pay your rent for 6 months at a time, but nonetheless these cheaper units are needed. I wouldn't mind living in a 300 sq ft unit, I often go to stores such as Ikea that have little units in them that show how large a 300 sq ft studio is and it should be doable for someone younger to live in.
A friend of mine just put a bid in for a micro apartment in a city where there are lots of college kids going to college (medical).
If you believe that, then why don't you take the risk like companies do and start your own business. If you are unwilling to do that then what makes you think you have the knowledge on what it takes or the right to complain. You chose your path in life and must accept the results of your decision.
WTF. I'm not complaining, I'm asking a reasonable question. Can you answer it?
And I'm self employed, so thanks for assuming I'm a worthless bottom feeder who doesn't understand how to start a business or use capitalism to my advantage. I use this "made up" wealth to my advantage, that doesn't necessarily make it legit.
Well you're talking about commodities wealth for the most part; I can have more silver than Bob does but does that make me wealthier than Bob? Not exactly. American Capitalism relies on global endeavors to grow its wealth, and counties with abundance of a particular commodity are exploited to grow our wealth domestically. This is why the US, although it denies it, always has a presence in Middle East affairs, we need their oil to keep our economy afloat. We have the cash to buy their oil, they sell it to us, and it turns a profit back home therefore investors are paid from another countries commodities wealthy in a sense. Capitalism is about making investments, at least in a broad scope, but a lot of other things also are affiliated with those of capitalists such as exploiting the worker, stepping on the little man, and etc, but that's not what I'm talking about in this thread, I'm talking about the creation of wealth aspect about capitalism that is hard to deny that it work.
Look at the Soviets, they hard a huge labour force, even larger than ours, they had more natural abdunance than we did, and their people were just as hard workers as ours, but they didn't manage to increase their own wealth because they failed to utilize all they had. I'd almost say that the Soviets failed because they didnt tax enough to have be socialists, I believe their tax rate was like 13% but that isnt enough to provide the full services of a socialist society. But Capitalism is about utilizing what you have, and growing/going from there. Now don't get me wrong, I still believe that in theory Socialism could work if not confronted with Capitalism, some of the most prosperous nations on the world are Social Democracies and they also have a fair amount of wealth but the people aren't as wealthy as those in their Capitalists counter-parts.
Great answer. Thanks!!
I do like your crowd-funding idea by the way. And if we are going to keep capitalism, investing should be taught in all schools.
Last edited by soanchorless; 05-01-2013 at 02:57 PM..
A friend of mine just put a bid in for a micro apartment in a city where there are lots of college kids going to college (medical).
Ah; I didn't think of having a bidding system for those apartments, that's purely genius. May I ask what city your friend is in? I don't think DC has Micro-units as far as I know, but I wish we had some especially since I'm moving out of my place soon. By the way, long time no speak.
Quote:
Originally Posted by soanchorless
Great answer. Thanks!!
No problem bud.
Quote:
Originally Posted by freemkt
Many more people COULD afford to buy, if tiny properties were available. So why does government prohibit developers from building and selling them?
Have you seen the types of units in the video I posted below? They're amazing to me. In regards to the gov't prohibiting developers from building smaller units, its quite obvious; its competition. Many people living in cities like DC, NYC, SF, and Etc. all wouldn't mind living in micro-units, and its not really because they're cash strapped but because smaller living is popular now. Now if you were a developer with political sway, would you want the people to have options of living in your $2000 a month unit, or would you want another developer to build cheaper units that people would really want? You'd want the later of course to make sure your own pockets stay fat, and for a fairly cheap prices you could give a politician enough cash to make sure they won't allow those units at least for a designated amount of time.
Great idea; then we could allow corporations to become our gov't officials as well and everything will be great!
But on a more serious note, do you support Capitalism? Of course it has its flaws just as everything else on the world does, but the overall idea that one can become wealthier does exist under Capitalism.
Agreed. I don't believe in pure Capitalism nor lassie-faire but nonetheless, I see how Capitalism can make one wealthy. Plenty of people just fail to utilize capitalism to the full extent solely because they don't have knowledge on what exactly it is.
I don't think there is any better system for generating wealth, or simply allowing people to do what they want with their lives than capitalism. However, there definitely is a need to impose some sort of restrictions to it. When you have corporations colluding with the government to pass laws or regulations that set up barriers to entry, or reduce competition, or subdue free market forces to derive an unfair advantage, it evolves true capitalism into some other, far less free and beneficial system.
Ironically, I just started a thread on a similar idea today:
The problem I see, is that there needs to be some regulation of capitalism, but the government is terrible at regulating anything. Their are either too heavy handed, or as stated above, corrupted by political influence from the very markets they are responsible to regulate.
I don't think there is any better system for generating wealth, or simply allowing people to do what they want with their lives than capitalism. However, there definitely is a need to impose some sort of restrictions to it. When you have corporations colluding with the government to pass laws or regulations that set up barriers to entry, or reduce competition, or subdue free market forces to derive an unfair advantage, it evolves true capitalism into some other, far less free and beneficial system.
Ironically, I just started a thread on a similar idea today:
The problem I see, is that there needs to be some regulation of capitalism, but the government is terrible at regulating anything. Their are either too heavy handed, or as stated above, corrupted by political influence from the very markets they are responsible to regulate.
I completely agree with you on that issue, especially in regards to the creation of small business. Over regulation, restrictions, and etc that are in favor of Corporations are killing business, and our gov't is allowing it. Money outweighs the interest of the people, and that's why corporations are getting their way.
I plan on contributing in your thread because I've been anti-crony capitalism for a very long time now.
Quote:
Originally Posted by soanchorless
Great answer. Thanks!!
I do like your crowd-funding idea by the way. And if we are going to keep capitalism, investing should be taught in all schools.
Exactly, why isn't it being taught in our schools? Honestly, I wouldn't have known about investing nor would I have done it, if not for the people on this site. I've always admired the wealth of others and I've always seen myself eventually getting to their level of prosperity but I didn't understand how they became wealthier simply because school didn't teach it to me. In my former high-school we always had events such as fundraisers, we had people selling candy and even our own school store, but no classes pertaining to finances and investing. Why not utilize what we already have in place, and make a new class that shows people how to actually market the 'businesses' or events within the school, and eventually build up to making people invest. There are plenty of smart people within our school system that can make suggestions on how to run a business or even something as simple as their own business idea, but they don't know where to get the funds from nor do they understand how to invest.
I've said this time and time again on this site, I want to start a business class within my former school system once I actually accumulate the wealth to do so. The class could hold car washes, sell candy, make T-shirts or whatever to show how to raise capital, and once the capital is raised they would invest that into shares in companies that they admire. I bet anyone, that if students hold a carwash saying that they are using the funds to invest into companies or even just learning how to invest, some people would donate a decent amount of funds towards their cause.
And I appreciate you admiring my crowd-funding idea, the only problem is I need people to tell me how to get it off the ground.
I completely agree with you on that issue, especially in regards to the creation of small business. Over regulation, restrictions, and etc that are in favor of Corporations are killing business, and our gov't is allowing it. Money outweighs the interest of the people, and that's why corporations are getting their way.
I plan on contributing in your thread because I've been anti-crony capitalism for a very long time now.
Exactly, why isn't it being taught in our schools? Honestly, I wouldn't have known about investing nor would I have done it, if not for the people on this site. I've always admired the wealth of others and I've always seen myself eventually getting to their level of prosperity but I didn't understand how they became wealthier simply because school didn't teach it to me. In my former high-school we always had events such as fundraisers, we had people selling candy and even our own school store, but no classes pertaining to finances and investing. Why not utilize what we already have in place, and make a new class that shows people how to actually market the 'businesses' or events within the school, and eventually build up to making people invest. There are plenty of smart people within our school system that can make suggestions on how to run a business or even something as simple as their own business idea, but they don't know where to get the funds from nor do they understand how to invest.
I've said this time and time again on this site, I want to start a business class within my former school system once I actually accumulate the wealth to do so. The class could hold car washes, sell candy, make T-shirts or whatever to show how to raise capital, and once the capital is raised they would invest that into shares in companies that they admire. I bet anyone, that if students hold a carwash saying that they are using the funds to invest into companies or even just learning how to invest, some people would donate a decent amount of funds towards their cause.
And I appreciate you admiring my crowd-funding idea, the only problem is I need people to tell me how to get it off the ground.
Your idea sounds a little like the micro-lending that is taking place in India and other countries. In this instance, though, I would call it "micro-investing". Your example regarding buying less at Whole Foods is apt. What if I just stopped buying a coke at lunch and just drank water, or ate out less at least one day a week. And if 20 other people did the same thing, you would have a decent set of investment funds in a few months.
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Real wealth can only be created by labor and natural resources. A capitalist system doesn't make those anymore than any other system. Capitalism creates a "fake" wealth through usury, does it not? It's not tangible wealth. It's made up. It's only real on balance sheets because we consent to it.
Great answer. Thanks!!
