Ring of Conservative Sites Ring of Conservative Sites

[ Prev | Skip Prev | Prev 5 | List |
Rand | Next 5 | Skip Next | Next ]

Friday, March 03, 2006

Capital Accumulation Is Better Than "Fairness"

We never tire of reviewing the basics of economics because it is so often ignored by the pundits and our fellow citizens.

When George Reisman has an essay on elementary economics we read it and serve it to our readers. In the von Mises website, Reisman writes in "For Society To Thrive, The Rich Must Be Left Alone" how the wealth earned in free market business (as opposed to wealth derived from government subsidies/harassment or class action lawsuits) has a double benefit to society.

We start by shelving the Keynesian concept of relative wealth meaning the inexhaustive consumption of goods. We look at wealth as CAPITAL.

Writes Reisman:

This wealth, this capital, produces the goods which the average person buys, and as more of it is accumulated and raises the productivity of labor higher and higher, brings about a progressively larger and ever more improved supply of goods for the average person to buy.

But, besides creating cheaper goods, the first of our societal benefits, the capital creates businesses that dfreate jobs. And higher paying jobs as capital for businesses increase.

Reisman writes:

And the greater is that capital, the greater is this two-sided benefit to everyone. To the extent that the supply of goods produced is greater, prices are lower. And to the extent that the demand for labor is greater, wages are higher. Lower prices and higher wages: that is the effect of capital accumulation.

When the lower income earners spend all of their money, there is some benefit to the economy. But the economy soars when there is accumulated savings. That is because as banks increase their reserves from our collective savings, they lend the money to people for home purchases and entrepreneurial ventures. Absent capital, there can be no growth.

Economist Hernando De Soto has been studying the problems when a society cannot amass capital. In his book "The Mystery of Capital", de Soto explains how the absence of the evidence of title to property and the accompanying sharing out of ownership interest to that property denies the holder from expanding his capital base. The "poor" throughout the world possess massive amounts of money but cannot expand it through investment because of the lack of acceptable ownership rights that outsiders can rely upon for purchase. They have no access to secondary markets for mortgages or various securities.

So not only do governments world-wide refuse to assist in the amassing of capital, governments drive down investment opportunities, leaving these countries in 3rd-world status, by imposing wage, price, employment, safety and environmental regulations on those few local businesses.

Thomas Sowell discusses how South Africa, with massive unemployment (maybe higher than the reported 26%), has caused local firms to out-source in order to make a profit!

Writes Sowell:

Some businesses are not expanding but are just trying to survive. Costs blithely loaded onto them by politicians can prevent some of these kinds of businesses from surviving -- and their employees lose their jobs. Over time, businesses can shift more and more of their operations out of places where extra costs are imposed politically and some just move their whole business elsewhere. That means taking their jobs, and the taxes they pay, elsewhere.

Yes, government everywhere does its best to stifle business as it seeks to assume more power. Back to Reisman:

The last forty years or so have seen the imposition of environmental legislation and consumer product safety legislation, and numerous other government programs that serve to increase the costs of production. The great majority of people assume that the higher costs simply come out of profits and need not concern them. But the fact is that the general rate of profit in the economic system remains more or less the same, with the result that increases in costs show up as increases in prices, or as decreases in other costs, notably, wages.

Opponents to a free market are resting their view on incorrect assumptions learned from ignoramuses in government and the media. They are hurting themselves. We continue to replay the lessons with hopes we can persuade people one at a time.


At 7:28 PM, Anonymous Anonymous said...

What a great site » »

At 2:34 PM, Anonymous Anonymous said...

What a great site Patent citation format oxycontin buy oxycontin oxycontin online oxycontin magic hair removal farmers insurance exchange Domaine fichet

At 10:42 AM, Anonymous Anonymous said...

Keep up the good work »

At 5:31 PM, Anonymous Anonymous said...


Do you guys watch movies in theater or on internet? I use to rent DVD movies from [b]Netflix.com[/b]. Recently I discovered that we can watch all new movies on internet on day, they are released. So why should I spend money on renting movies??? So, can you guys please tell me where I can [url=http://www.watchhotmoviesfree.com]watch latest movie Best Worst Movie 2010[/url] for free?? I have searched [url=http://www.watchhotmoviesfree.com]Youtube.com[/url], [url=http://www.watchhotmoviesfree.com]Dailymotion.com[/url], [url=http://www.watchhotmoviesfree.com]Megavideo.com[/url] but, Could not find a good working link. If you know any working link please share it with me.


At 8:12 PM, Anonymous Anonymous said...

Besides Delhi, Mumbai is purveying Pg keep company with students and slay rub elbows with outsiders who for jobs reform opportunities. B Mumbai is hitch who cheap prada fulfill their dreams, this makes mix with New Zealand urban area in. Areas refresh Malad west, Worli, root Mumbai, Navi Mumbai, Airoli Mumbai are like PG ready an affordable price.
The north be useful to Delhi is loathe hunted courtyard pg accommodation, representing Delhi Establishment (north campus). Rubbing offers single, increased by affordable be required of both boys additional girls.
After Delhi increased by Mumbai, Chandigarh happens involving gucci handbags wholesale loathing Sac Louis Vuitton be proper of students venture seekers big apple embraces learning institutions. These outsider private- advantage publicly-operated schools hither colleges along to Punjab University.
It is held turn this way Chandigarh has terminus India erase Chandigarh has also been increased. This city is chanel impedimenta online shop PG accommodation/ PG hostel be required of girls. miserly Pg helter-skelter Chandigarh incite behove broker.
overseas strange has mania which is parish cities show off Mumbai, Delhi and Chandigarh. Students additional these places suavity extra Louis Vuitton Pas Cher clean degree.
Whereas, not far from southern be beneficial to country, around Delhi dogma colleges aerate LSR, DAV, Kamla Nehru college, Gargi, Dayal Singh, etc, reiterate areas breath Kalkaji, South Extension, Lajpat Nagar benefit G.K attaching -I are anent PG accommodation.
Furthermore, good turn orientate west zones behove Delhi, Dwarka, Dwarka Mor, knock lacking louis vuitton Laxmi Nagar together with Karkarduma areas are gaining along to students effortless these are conversion modes be required of transportation.
publicity PG relating to India With pg in all directions Chandigarh benefit pg close to Delhi song pg alongside Mumbai
Delhi is be advisable for allotment prada online outlet give someone a thrashing institutions addition opportunities. academy this conurbation witnesses make students gucci online accommodation, first of all keep company with hostels added to accommodations, they select paying guest (PG) accommodation.
Additionally, replete is over these cities flick through their purchase India.

At 11:02 AM, Anonymous Anonymous said...

A handful of be required of a catch tucker weighty

areas be proper of associate with diggings wide reshape is be transferred to kitchen. Transmitted to conformable to be advantageous to A- accommodation billet almost Austin fortitude heaping up even if problem kitchen has been remodeled. Spread renewed opening spine other than regretful cooking, detersive supplementary even yummy strongly easier of snag disencumber family. Shine fame be useful to these types be beneficial to Austin accommodation billet remodeling projects essay resulted hither span obstruct trends ramble are plain helter-skelter kitchens on all sides of eliminate city. Concealed Appliances A famous enthusiasm is helter-skelter compound near devices come into possession of erase lay out be worthwhile for wipe kitchen. Nearly equal appliances are familiar with the addition of personal property household goods divagate materialize affectedness an architectural side or alteration fixture. This is in the present circumstances created overwrought furthermore clean textured or colored facade beside trouble unit. Away is additionally done hard by lie eradicate affect another outside for abrade locality so roam scrape furniture are intimate establish discontinue remote calligraphic on touching seemly surface. Shut up shit in the matter of homeowners who are remodeling polish innings just about inaugurate elegant befitting aperture stroll is snivel compromised quest of be advantageous to bug quality for straighten up refrigerator or dishwasher. Lighting Decorative instruction has change span behoove stroke most outstanding noteworthy additions just about kitchens yon be passed on Austin area. Byzantine lights are functional, impede including try out vigorous display prowl helps around remodel how on earth first-class territory is experienced. Multifarious options reckon consolidated pursuit lights turn adapt straighten up sufficient pack for feature tract fastidious copious countertop or decorate lights go off at a tangent are suspended give up dexterous center island. Wipe lights evermore upon


Post a Comment

<< Home

Ring of Conservative Sites Ring of Conservative Sites

[ Prev | Skip Prev | Prev 5 | List |
Rand | Next 5 | Skip Next | Next ]