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Capitalist Piglet, the point of a farming model that I describe is that it would be nice, fluffy, warm, community-friendly, A Good Thing To Do and not be at all about Socalist-control and freedom-limitation, which is a Bad Thing. Who cares if it is wasteful, if it enriches society?
Well, it's kind of swings and roundaboutsy, isn't it? The more people are employed on theese farms, the more people have jobs, they spend more at the local markets, who have to take on more staff, so more people get jobs, they can afford to buy more food, more produce is ordered, the farm takes on more staff, the people who have worked on the farm for a year and know how it works backwards get more respect, and more money, which they can then spend on buying new jeeps, so more people are hired at the factory that makes jeeps, so the price of jeeps remains the same because suppky is increasing to match demand, and the extra cost of the new workers is balanced by the extra margin on selling more jeeps. And these workers buy more baroque iron beds, and a small company making baroque iron beds finds itself suddenly able to charge more for its beds, which is sustained by the market because people want iron beds and are ready to pay more with their extra money, and then more people are hired to produce the beds, so supply...
Hang on, I just created a utopian model of consumer-led capitalism. Am I feeling all right? What I find interesting about capitalist structures is that it is enormously difficult to work out the effects of a change at any one point in the chain, or the volitions behind it.
Still, assuming that it all works as it should (arguably), how about those trickle-down economics? I seem to recall that Reaganomonics aimed at allowing people to maximise their capital accumulation at the top of the chain, on the grounds that this would then be reflected in benefits passed down throughout the capitalist system of exchanges, whereas if you give the people at the bottom more money you just short-circuit the whole process and end up with inflation. How did that work out? |
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