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Which do you think is better for economic growth. Human capital is the economic model that consist of humans with talent and education who create production with their talents. Technology and innovation are the drive of economic growth.
Finance capitalism is the model in which profit is made by investing in stocks and bonds. Many of it involves risks. Financial bubbles are a good example of finance capitalism.
In my opinion, the US can not become prosperous again until it invests in education. We need educated people to compete on the global scale.
We can no longer depend on an economic system that involves risks and stunts economic growth.
From the market, stocks are a result of the market.
People in the market that succeed are those best prepared for the opportunities presented to them.
Government can screw them up with laws, but outside of that they have nothing to do with success and individuals are responsible for what they make of their own life. No one makes a life for you, anyone thinking that needs to grow up.
.....Financial bubbles are a good example of finance capitalism.
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Some much better examples of finance capitalism can be found on the freely available balance sheets of publicly held American companies, which in total show trillions of dollars of capital investment in everything from factories and manufacturing facilities to research labs to stores and offices and shops and fabrication plants and other property, plant and equipment.
All the college graduates in the world would have a tough time putting Caterpillar earth movers together in the middle of a field somewhere. And the UPS guys would have a tough time without the planes and trucks.
We would all be better off if we fixed our pathetic inner-city schools and other under-achieving parts of the educational system. But some of the most valuable forms of human capital are largely free: a strong work ethic, productive attitude, effective habits, etc. The parts that are not free are often a personal investment, not a societal one.
Your dichotomy between human capital and finance capitalism is naive in the extreme.
Finance capitalism is the model in which profit is made by investing in stocks and bonds. Many of it involves risks.
Not to imply your comment was meant to be an all-inclusive list since you were just giving common examples, but add loans to business, investment into business as a partner of various forms (be it a silent partner or otherwise) which can either take the form of traditional venture capitalism or simply investing between "little guys," relatives, friends, or other interested parties not usually thought of as "high financiers." Then there is angel funding, small business incubator-type models, co-op type model investing, mutual aid interest-free investing, etc...
Just thought I'd throw in a couple other possible methods that fit under the same umbrella, lest their be the possibly skewed appearance that finance capitalism is somehow [mis]portrayed as only being part of "high finance" with "fat cats" running the show controlling million or billion dollar business involving stocks and bonds, when it is likewise integral to the health and wellness of small and mid size business as well, and obviously isn't limited to just "stocks and bonds."
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Originally Posted by knowledgeiskey
Which do you think is better for economic growth
Labor, as there is no growth without labor. There is no market at all, without labor.
Though I draw no normative conclusions from that such that I think it necessitates any public policy favoring one over the other, or one group over the other.
Last edited by FreedomThroughAnarchism; 03-14-2011 at 04:04 PM..
Which do you think is better for economic growth, human capital or finance capitalism?
You present a false premise; the idea that one can exist without the other. Plus . . .
No risk . . . no reward.
No pain . . . no gain.
Evolve or die.
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