Comments on: The end of capitalism http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/ Shining a light on the dismal science Wed, 16 Nov 2016 01:39:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Workonthis http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1591 Mon, 11 Jan 2010 21:04:10 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1591 Hey Anubis. I have a great way to eliminate the boom & bust cycles we endure in our capitalistic society. Legislation should be passed to connect all debt instruments and their interest rates to the Fed’s banking rate. Whenever the Fed lowers or raises interest rates to the central banks, all interest on all debt should be like-wise adjusted up or down. This way the Fed will be able to add or remove money from our economy without lag, without re-negotiations. Banks & other investment middlemen will be neutral players. Citizens will carry the cost or savings. Debt is the cause of all our excesses, it needs total controlling.

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By: methusealh http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1573 Mon, 21 Dec 2009 22:09:19 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1573 Capitalism has its good points like taking advantage of the less intellectually gifted. However in the end it uses up to many resources and even those who were haughty enough to think themselves beyond the consequences of their greed will suffer and if not them their children or their children’s children. You don’t have to believe in God it’s just the way things work.

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By: MrBill http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1562 Tue, 15 Dec 2009 08:57:30 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1562 Capitalism and the market economy are dead? And they will be replaced by what? Who is going to stop me from working hard, saving my money, and investing my money?

I am going to buy an apartment building using my sweat equity and the bank’s money that comes from other savers. Then I am going to rent-out those apartments to others that need a roof over their head and a decent place to live. And I will collect those rents and use the money to repay the loan to the bank. In the meantime I will build-up equity in the building that is my profit on my capital and my labor.

And who is going to stop me? Price and rent controls? Completely possible. We were there in the 70s & 80s. Did it end capitalism and the market economy? No, it created amoung other things a housing shortage as well as a lucky few that got to live-in subsidized housing at a fraction of its market price.

Sure, if I make money either through rents or through capital gains the government will surely be there to take their cut of my profits. They always are. But unless they are prepared to take 100-percent from me, and everyone like me, I am still ahead of everyone that does not work hard, save their money and invest in revenue producing assets.

If you think the command and control economy changes anything then you are badly mistaken. All you change is who gets to live in the best apartments in the best locations. Instead of letting market rents decide based on the ability to pay maybe you give them to your party elite, their families, a few sports stars and other heroes of the people. But nothing changes. It just becomes more arbitrary based less on merit and more on dictat.

The fundamental failure people make is they do not understand the difference between ‘a market failure’ and ‘the failure of government interference in the market’. You can confiscate my wealth and re-distribute it if you like. But in a relatively free society or social democracy you cannot stop me from creating that wealth in the first place.

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By: Tonydd http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1551 Thu, 03 Dec 2009 18:47:32 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1551 Shock Horror! the US won’t be in the drivers seat when the changes take place, so a US centric view is simplistic.Capitalism will alter … has altered due to China a ‘hybrid derivative’ of capitalism.It will be adapt or suffer unknown consequences for post Breton Woods world.

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By: Engineer http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1550 Thu, 03 Dec 2009 14:03:25 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1550 Like most systems, the economy is cyclical. Consider the old example of the rabbits and foxes.http://www.atarimagazines.com/crea tive/v9n6/280_Rabbits_and_foxes_biolog.p hpThe economy grows to the point it can no longer sustain itself, leading to a bust. At that point, there is some reorganization and evolution and the process repeats itself. Each time, there is something learned from that evolution. It is innovation.Consider the dot com bust of the past decade. With the rise of the World Wide Web, there was money to be made in this new marketplace and the possibilities were limitless. This led to an oversaturation. Businesses failed where there was no market for the type of services being offered. Some succeeded, wildly. Google, an internet search engine did nothing innovative beyond what others were already doing, but tied directed advertising based on search queries to make a small profit on each click – This is the difference! Google saw the opportunity to do something in a novel way that made money in a down market. The market evolved, it expanded in ways few predicted. It is the entrepreneur that has the vision to evolve that succeeds.I will give another example. There is much fear and uncertainty in this country, today. Some citizens are fearful that Obama will “take their guns away”. As a result, firearms and ammunition are experiencing a boom market. Companies are running overtime & extra shifts to keep up. Manufacturers of large metal vaults cannot keep up with demand. The price of an ounce of gold is outrageous. You see, it is the innovator, the visionary entrepreneur that can thrive regardless of the overall economic. He can see the demand and the market, and moves in to capitalize.Capitalism allows for the entrepreneur to succeed based on his own work ethic and desire for success. You can achieve the status you desire through hard work and dedication, along with some vision. If one lacks the vision to evolve, or the will, they will fail. They should fail. This notion that the Government says a company is “too big to fail” is not Capitalism. It reeks of Fascism.If one buys a home he cannot possibly afford, then he deserved to lose it based solely on his poor planning. Yes, circumstances beyond one’s control occur. Jobs disappear, income is lost. Natural disasters are unpredictable. It sucks, I know. However, with proper planning these events can be less catastrophic. Buy a house that you can afford on 30-50% of your income. Don’t buy a brand-new luxury car. Live within your means and save. Invest. Budget. Those too irresponsible with their finances should not be buoyed by the responsible. Work hard and be successful. Pull yourself up. Pay your taxes. Succeed on your own merits. You are responsible to yourself. If you so desire, give all you have worked for away to charities and the poor. It is your choice. This is Capitalism.

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By: Anubis http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1547 Wed, 02 Dec 2009 16:40:43 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1547 Correction for typo error: President Woodrow Wilson signed the 1913 legislation that established the federal reserve board.

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By: Anubis http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1545 Wed, 02 Dec 2009 16:36:43 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1545 Mufaso, you only tell part of the story. Banking failures and economic collapses plagued the U.S. for 100 years before FDR. President Jackson did not renew the Bank of America Charter. Subsequently the U.S. experienced the worst economic collapse to date. Every 20 years or so the economy went through similar catastrophes. Post Civil war, the 1890s, early 1900s, the late 1910s, early 1920s and the 1930s were all visited by recession and banking collapses. It is interesting to note that in 1913 the signed legislation to establish the Federal Reserve Board in order to address the very issue of banking collapses and the harm they bring.It is clear to me that the Federal Reserve Board is not capable of preventing these severe economic contractions. We are probably not much better off than if there was no FED. Engels and Marx were correct. Capitalism is subject to the cycle of bust and boom continually. It is a naturally occurring cycle. We would probably be better off preparing the citizenry to survive such cycles rather than trying to prevent them. This will probably offend some readers as this a socialist view.England and Europe were plagued with cyclical economic contractions and bank failures going back hundreds of years as well. What is mind boggling to me is that as a nation we have ignored these lessons and not developed a better strategy to deal with these cycles. Perhaps the real core of the problem is not which system is best but the failings of human nature, greed, resistance to change and our general lack of critical thinking.

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By: eblogger http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1543 Wed, 02 Dec 2009 16:16:06 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1543 In my view, Government intervention doesn’t imply the end of capitalism.What it really means is that the Government, evidently the biggest capitalist as a collector of tax on virtually everything and the biggest socialist as using the same money for public welfare, is out full-scale to contain the chain reactions initiated by bankrupt organizations.Protectionism had been always a part of government plans as subsidies and import duties, and is just an extended form of “public welfare” i.e. Socialism. No single organization can claim to take over the status of “biggest capitalist” from Government either.There is no loss of image for capitalism, as it is better to take help even from an enemy ship than sink without traces.

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By: emenot http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1539 Wed, 02 Dec 2009 10:23:45 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1539 Its water under the bridge boys and girls, the money is gone ELVIS HAVE LEFT THE BUILDING! Many people still don’t know where all the money had gone? Let me give you a 7 letter word….BONUSES

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By: Benny Acosta http://blogs.reuters.com/macroscope/2009/11/23/the-end-of-capitalism/comment-page-2/#comment-1515 Mon, 30 Nov 2009 16:13:20 +0000 http://blogs.reuters.com/macroscope/?p=2651#comment-1515 Anon,The message I bring is for those who understand. You aren’t one of them. You could be if you wanted to be but that would require that you open your heart.Try explaining what a banana tastes like to some one who has never eaten one and let me know how far you get.You want to understand by way of logic and reason alone. These things cannot communicate the truth of love. If you would understand you must taste and see for yourself.You just aren’t there yet. Be content in your knowledge and may it bring you comfort. No one will truly know love unless they first love.Those who understand will understand.

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