Getting a Piece of the Pie

  • Thread starter Danoff
  • 46 comments
  • 2,144 views
(BTW, thanks FK for fielding niky's post)
đź‘Ť No problem. I just hope I got it all correct, and clear.

Understood...I was just commenting on how the phrase may have gotten started. Who knows?
Well, using The Jefferson's theme song as a reference, "Finally, got a piece of the pie," makes it sound as if the pie is only what rich people have and you have to succeed to even get a piece of it, because in the context of the show the song refers to coming out of welfare and "moving on up" because his dry cleaning business finally took off, despite what Archie Bunker said about him (or it could refer to them getting their own show, but that doesn't work here).


I hear the phrase used in two different ways:
1) I'm going to implement this idea I have and get me a piece of the pie - I will succeed and enjoy the wealth that comes with it.

2) We should all get a piece of the pie - Not just those who succeed should enjoy wealth. I believe this is more what Danoff is referring to where people think they are entitled to something they haven't earned because others have it and a "haves" and "have nots" society is unfair.
nopity.gif



I guess your usage depends on how you view the pie, a reward or a right. Sad thing is that by referring to it as pie the people who consider it a right forget that pie itself is a special treat reserved for after you eat your vegetables.

Yep, I'm late for lunch.
 
I guess your usage depends on how you view the pie, a reward or a right. Sad thing is that by referring to it as pie the people who consider it a right forget that pie itself is a special treat reserved for after you eat your vegetables.

Yep, I'm late for lunch.

I can't resist....How bad do you want the last piece of pie? :yuck:

 
Understood...I was just commenting on how the phrase may have gotten started. Who knows?

I think generally speaking the phrase comes from a misconception about economics. If you view the economy as fixed, the analogy fits.

Also, it's an easy misconception to develop as the concept of wealth creation is a rather difficult one to grasp. Once you mistakenly believe that total wealth is fixed, the "piece of the pie" analogy just naturally springs forth - it's the best and simplest imagery that conveys the thought perfectly.

I think that the rampant use of the analogy also helps perpetuate the misconception itself.

Ah... there's that damn line again. Pandora just queued up the song that started this thread.
 
The big question is, does the total ammount of currency in circualtion increase faster than the rich are getting richer?

Maybe not THE big question, but A big question all the same. And I'm talking real world here, not Jim, Bob and Steve with their apples and melons.
 
How does getting rid of the Federal Reserve play into all of this? What's wrong with deflation?
 
The big question is, does the total ammount of currency in circualtion increase faster than the rich are getting richer?

Maybe not THE big question, but A big question all the same. And I'm talking real world here, not Jim, Bob and Steve with their apples and melons.

Outside of degenerate cases (cheating, stealing, blackmail, etc.) explain to me how anything else can happen.

Omnis
How does getting rid of the Federal Reserve play into all of this? What's wrong with deflation?

Deflation has a strong growth-stagnating power. If your money is going to buy more tomorrow than it does today, you don't spend it. Moreover, you'd be willing to pay someone to hold on to your money for you. Negative interest loans really screw with economics.
 
Deflation has a strong growth-stagnating power. If your money is going to buy more tomorrow than it does today, you don't spend it. Moreover, you'd be willing to pay someone to hold on to your money for you. Negative interest loans really screw with economics.

Oh, I see. Yeah, that would really flip things upside-down.
 
Outside of degenerate cases (cheating, stealing, blackmail, etc.) explain to me how anything else can happen.
It was a question, I don't follow economy all that much, but the reason for the question is to see if the coment "the rich don't get richer by taking away other peoples money" is true or not. Prices can and do change at different rates to value of the pound, dollar or whatever currency you want to use. Inflation of item prices can be greater percentage wise than the inflation of your nations overall money.
 
It was a question, I don't follow economy all that much, but the reason for the question is to see if the coment "the rich don't get richer by taking away other peoples money" is true or not. Prices can and do change at different rates to value of the pound, dollar or whatever currency you want to use. Inflation of item prices can be greater percentage wise than the inflation of your nations overall money.

Certainly for individual items. But the price of EVERYTHING can't go up unless there's more money out there - otherwise people will start selling a lot less and the prices will be brought back down.

Market forces adjust prices up and down all the time. Oil goes up because demand remains high and supply decreases. Electronics prices go down because supply increases as the demand is met.

Does that mean that oil companies make more money than electronics people? No necessarily, because price isn't the whole picture. Companies constantly try to maximize profit - which means setting the price at such a point that demand remains high. It's an optimization problem with price on one side and demand on the other. The only way to do what you describe is to raise prices and somehow coerce demand to remain high - which is tricky to do without government help.

I can't really answer your question because I don't know how to quantify how fast the "rich get richer". It's also difficult to get a good solid measurement of a nation's economic growth. All I can tell you is that I can't conceive of how else it can happen. There is no mechanism by which the rich can steal from the poor (outside of the degenerate cases mentioned earlier which apply to all people).
 
The greatest form of poverty is lack of character...entitlement programs eliminate the need to build character and develope a core system for the individual . that will sustaim him for his life time ..in short entitlement dooms the individual to perpetual poverty .

The worse thing Jesus did was " give out fish " he should have taught more fishermen .
 
You do realize that the monet you brought in government subsidies and taxes affecting how someone else is able to compete you just proved Danoff's point? Anyone who supports what Danoff is saying will believe that the government should stay out of the process altogether. The government shouldn't subsidize business anymore than it should give handouts to individuals.

Your problem is that you described the American capitalist system wholely, but the American system is not precisely what Danoff is trying to support. Why would you think that he would support government fiddling here when he doesn't support it anywhere else, ever?

Your bandits are also a part of the problem. They are worse than people taking welfare, because those taking welfare don't realize they are stealing and I will give them the benefit of ignorance, but a bandit will arm themselves with the full intent of stealing. Once again they are part of the problem Danoff is describing because they want a piece of pie without using their oven or paying the cook.


And Pacho coming in to try and start up his own business ina market that is saturated and has its supply met, whose fault is it that he struggled? Pacho sounds like a bad businessman to me. I give him credit for trying, but their is no guarantee that he will succeed, as it should be, and anyone helping him succeed out of kindness is only hurting him, and the market, in the long run. Pacho should have checked out the market first to see if he would be able to provide a service/product not yet met. If Pacho were smart he would have switched to growing the now unmet cantaloupe market or found a different marketplace to sell his watermelons.

And I guess Pacho couldn't have gotten a loan to buy the better land? The term business loan is fairly common.

Basically, you have tried to throw off the system by adding things that would be part of the problem Danoff wishes to avoid and by introducing a bad businessman who has no more guarantee of success than any of the other three. If you guarantee Pacho any kind of success you throw off the system and give him an unfair advantage that he didn't earn, which is the whole point.


I'm sorry for being away so long.

What I'm pointing out is: Danoff's system is ideal. I don't see anything wrong with it, if that was actually the way the world worked.

But to make the jump from this ideal model to the real world, and the "why oh why don't the poor people just work their asses off and stop complaining" sentiment that I've seen in those who live in a western environment (it's common here, too, for those of the middle and upper classes who've never ventured out of the city or into the slums) are based on this idealistic model of a capitalistic society, where everyone starts out on equal footing at the same time, but not the actual global picture.

Basically - government subsidy is a fact of life. Most successful national businesses nowadays have it. Why don't the lazy poor people just farm? They can't make money off of it, is why. First world agri-subsidies make third world farming uncompetitive... in every single aspect. What else is Pacho going to farm if American cotton costs half of what he can afford to sell at, and his land isn't big enough to support his family if he tries to grow corn? Yes, ideally, he'd get a business loan... but being illiterate and with nothing to mortgage but his land (which is worth, say... a total of five hundred dollars? How much tractor can you buy with that?), and living dozens of miles away from any financial institution, he's going to have a hard time.

There are some thrift banks and financial institutions that specialize in micro-financing. But the sad reality is: There aren't enough, and if Pacho isn't one of the few who can get micro-financed, tough.

So Pacho can't afford the tractors, or the gas, or the fertilizer... or, heaven forfend, his products start becoming uncompetitive because they're not organic.

It's easy to sit at the far end of a few hundred years' industrial development and think: hey, we did it that way... why not you? The mere fact that there's already vast industrial and agricultural empires who can rely on low tariffs (thanks to increasing globalization) and cheap transportation (which makes American cotton cheaper in Africa than African cotton can sell for) to help them maintain grip over large market areas. There's a reason those manic, spittle-flecked protesters are so violent every time there's a WTO meeting.

Even with government subsidy and huge loans, some start-ups can't compete, simply because once you get the ball rolling and have more money to invest on trivialities than your opponents have to invest in basic research just to stay afloat, you can simply bulldoze them out of business. Witness Proton. They're spending lots on development, and used Mitsubishi to jumpstart themselves. But they can't compete at all. Perouda is doing better, but simply because they're not as dependent on the government.

Our local auto industry is full of failed start-ups. When you're trying to make a competitive vehicle in the thousands per year, you simply can't beat a company making hundreds of thousands, spending less per car than you do.

I've seen lots of people go into business headlong, with vim and vigor, only to get crushed simply because they couldn't compete with established monopolies (both western and local).

And, yes, big companies also give a lot in terms of charity and livelihood, but anything that will threaten their market-share is often weeded out to be crushed, brutally. Our last locally produced, competitive soft-drink company was bought out by Coca Cola, and through selective mismanagement, was run into the ground. Local automakers have gotten the shaft from their Japanese partners. It's all business, yeah, but it's downright dirty sometimes.

What I mean is: yes, it's wrong to ask for hand-outs or out-right charity if you can actually get off your lazy ass and do it for yourself. In fact, there's an entire subpopulation devoted to living off of begging.

But what I'm pointing out is that poor =/= lazy. Beggars in metropolitan areas sometimes live better than people actually trying to make a living by farming, livestock raising and the like. Sometimes even better than trained personnel trying to upraise their communities by teaching livelihood or starting up cottage industries.

So... yes, in principle, it may be unfair to ask for a piece of the pie you haven't worked for... but it's a misconception to believe that everyone who already has a piece of the pie has gotten it purely through hard, honest, work.
 
I'm sorry for being away so long.

What I'm pointing out is: Danoff's system is ideal. I don't see anything wrong with it, if that was actually the way the world worked.
And the point is: That is how the world should work, but people can't sit around complaining and expecting the government to give them handouts.

But to make the jump from this ideal model to the real world, and the "why oh why don't the poor people just work their asses off and stop complaining" sentiment that I've seen in those who live in a western environment (it's common here, too, for those of the middle and upper classes who've never ventured out of the city or into the slums) are based on this idealistic model of a capitalistic society, where everyone starts out on equal footing at the same time, but not the actual global picture.
The reason why this kind of comment is said often in the Western world is because it is possible. Perhaps you missed the number of times I have commented on how I came from a poor farming community where schools focused on farming and not college-pre, but still managed to work and study, get into college with loans, and graduate and have made my own way to where I am. All while having a serious medical condition that caused everyone around me to ask why I don't apply for government aid, because I would qualify.

Supposedly I am that guy who didn't start out on equal footing and even got stuck with limited choices due to a birth defect. That didn't stop me and that is why I have very little sympathy for anyone that is physically and mentally able to work, but don't. It can be done and you can move up in life. I know because I did it. And I didn't even go into everything I overcame.

Basically - government subsidy is a fact of life. Most successful national businesses nowadays have it.
And things would be better long-term if there were no subsidies for anyone. Instead the government uses some method, which I can't understand, to pick who does and doesn't get this. Many times I see it going to businesses that don't need it. Other times I see the government paying out to people like tobacco farmers (I know this story intimately) because the government went on a campaign to destroy the tobacco industry. When someone pointed out that they were attacking their own major cash crop the government went, "DOH!" And then started giving money to the farmers.

This is situation where the government is throwing money out both ends, one end to stop tobacco and the other end to support it. This case wouldn't have happened if the government hadn't started sticking its nose where it didn't belong. Still, somehow many tobacco farmers here in Kentucky started growing either soy beans or feed corn. My stepfather (before meeting my mother) converted to a cattle farm. Wait, you mean they can change what they grow in order to continue their business? Yep, that's how good businessmen do it. They adapt to the changing environment (even if it was an unjust change) and find new ways to farm. In other words, despite the subsidies giving unfair advantages to some a proper businessman can adapt and change.

Why don't the lazy poor people just farm? They can't make money off of it, is why.
I thought it was because they were lazy. Trust me, farming is hard work and not a job for lazy people.

First world agri-subsidies make third world farming uncompetitive... in every single aspect.
Which is why they are wrong and don't belong in the system. A subsidy is part of the problem that allows the lazy businessman to hang around and harm the overall economy and not allowing proper competition.

What else is Pacho going to farm if American cotton costs half of what he can afford to sell at, and his land isn't big enough to support his family if he tries to grow corn? Yes, ideally, he'd get a business loan... but being illiterate and with nothing to mortgage but his land (which is worth, say... a total of five hundred dollars? How much tractor can you buy with that?), and living dozens of miles away from any financial institution, he's going to have a hard time.
I'm going to ignore that it takes more land to grow cotton than corn for a second. My uncle grows both. He bought a cotton farm not too long ago.

What you have done is taken Danoff's example of how the world should work and points out the problems that create the way our world is now and turned it completely around to a world where it is completely impossible to get a start, no matter what. $500 worth of land? Did he buy a plot in a toxic waste facility? I'm surprised you didn't just have Pacho get into a major farming accident where he lost all his limbs. I don't know how much more unrealistically you could have handicapped him.

For the record, most people use their house. Or is he farming out of an apartment? That might explain why he only has $500 worth of land.

There are some thrift banks and financial institutions that specialize in micro-financing. But the sad reality is: There aren't enough, and if Pacho isn't one of the few who can get micro-financed, tough.
Actually I can pass two going from my house to McDonald's. There are enough in regions where they can be utilized.

So Pacho can't afford the tractors, or the gas, or the fertilizer... or, heaven forfend, his products start becoming uncompetitive because they're not organic.
It takes a really special farmer to have a cost-effective organic farm. Those that can do it become rich, but non-organic farmers have to use less man hours to produce more sellable goods.

And depending on where Pacho lives depends on whether or not Organic is even in demand.

I'll quit trying to pick your scenario apart and just point out that you have unrealistically handicapped Pacho and thus I cannot respond. The only thing I can do is say the same thing I said before. If Pacho is in the situation you have him in then he does not have a head for agri-business and should go to school to learn a new trade where someone will just hand him a paycheck at the end of the week because he obviously can't run his own business.

Oh wait, I just listed another option for Pacho, even in his horrid situation. And he can save some money by growing a vegetable garden on his land so his family only needs about half the groceries. And as someone who has my own garden I am sure that he will grow too much of one or two items that he can try and sell at a farmer's market or trade to others. Or in real life be nice enough to give to family and friends, who will in turn give him whatever they grew too much of this year.

It's easy to sit at the far end of a few hundred years' industrial development and think: hey, we did it that way... why not you?
Wait is this more about globalization than anything to you? Some people are in regions where the environment does not allow for easy development, and then some of those move. We welcome them into our country (legally) where they can have a chance at life. I'll admit the red tape is tough, but people do manage to make it.

The mere fact that there's already vast industrial and agricultural empires who can rely on low tariffs (thanks to increasing globalization) and cheap transportation (which makes American cotton cheaper in Africa than African cotton can sell for) to help them maintain grip over large market areas. There's a reason those manic, spittle-flecked protesters are so violent every time there's a WTO meeting.
Hey don't blame the system when the politicians screw it up. Part of the whole issue is that government shouldn't be involved in any of this, whether it be wealth redistribution, subsidies, or tariffs.

Even with government subsidy and huge loans, some start-ups can't compete, simply because once you get the ball rolling and have more money to invest on trivialities than your opponents have to invest in basic research just to stay afloat, you can simply bulldoze them out of business.
I did mention the fact that no one is guaranteeing you a chance to succeed, and we would think much more of a person that tried and failed than one that sat and whined because Dan invented something and he wants a court to take away his patent so they can benefit from his ingenuity.

Besides, you just described competition. You can't make what someone else has, you have to make something better that the consumer would prefer. And you need to know in advance how to get it out there or you will be struggling to get yourself known.

Witness Proton. They're spending lots on development, and used Mitsubishi to jumpstart themselves. But they can't compete at all. Perouda is doing better, but simply because they're not as dependent on the government.
Do I need to comment on this and how this is a prime example of how capitalism will fail when you allow too much government intervention?

According to Wiki:
In 2006, Proton's sales dropped 30.4% from 166,118 in 2005 to 115,538 for the Malaysia market,[1][3] with a later report indicating a 55% fall of sales to 962.3 million ringgit, its lowest in at least seven years.[4] This allowed Perodua to overtake Proton as the country's largest passenger carmaker for the first time, with a 41.6% market share, while Proton's market share fell from 40% in 2005 to 32% in 2006. In the period ending December 31, 2006, Proton has also suffered three consecutive quarterly losses.
You can't convince me a properly running company is just helplessly losing sales. A struggling company can only blame themselves. You don't see me stomping and whining about how Toyota bypassing Ford in the US is so unfair do you? No, I say Ford needs to get their crap together, quit asking for the government to pay for their alternative fuel research, and make some stuff I actually want to buy.

I've seen lots of people go into business headlong, with vim and vigor, only to get crushed simply because they couldn't compete with established monopolies (both western and local).
It takes more than just a will, but I will give respect to those who try.

And, yes, big companies also give a lot in terms of charity and livelihood, but anything that will threaten their market-share is often weeded out to be crushed, brutally. Our last locally produced, competitive soft-drink company was bought out by Coca Cola, and through selective mismanagement, was run into the ground.
All I see here is Coca-Cola hurting themselves. They bought the local company, so they owners got their money and probably laughed on their plane to their new private island, or whatever they wanted to do when they got rich. Then Coca-Cola mismanaged their own product and lost their own money. I don't see what was the issue here. The little guy got rich and the big guy lost money twice. Sure some local employees got screwed over in the deal, but Coca-Cola didn't do it just to be mean to them. It sounds like Coca-Cola doesn't understand the Malaysian market.

Local automakers have gotten the shaft from their Japanese partners. It's all business, yeah, but it's downright dirty sometimes.
Mental note: Don't partner with the Japanese when trying to launch car company. History shows you get screwed over. After the first couple how many more kept trying this tactic? At that point it becomes their own fault.

What I mean is: yes, it's wrong to ask for hand-outs or out-right charity if you can actually get off your lazy ass and do it for yourself. In fact, there's an entire subpopulation devoted to living off of begging.
Glad to see we agree.

But what I'm pointing out is that poor =/= lazy.
If you can work and think and you are poor, relative to your surroundings, you had better have a really good excuse involving Bigfoot and aliens.

Beggars in metropolitan areas sometimes live better than people actually trying to make a living by farming, livestock raising and the like. Sometimes even better than trained personnel trying to upraise their communities by teaching livelihood or starting up cottage industries.
What's your point? These are not poor people. You just pointed out one reason why I don't give out cash.

[So... yes, in principle, it may be unfair to ask for a piece of the pie you haven't worked for... but it's a misconception to believe that everyone who already has a piece of the pie has gotten it purely through hard, honest, work.
If you didn't get it through honest work then I don't consider you any better than those that abuse welfare systems. Stealing is stealing. Of course, what our definitions of honest are might be completely different things.
 
So... yes, in principle, it may be unfair to ask for a piece of the pie you haven't worked for... but it's a misconception to believe that everyone who already has a piece of the pie has gotten it purely through hard, honest, work.

Ok, how do I say this gently...

THERE IS NO PIE!!

You don't get a "piece" of the "pie" because there isn't one. You create wealth for yourself, you do not take it from an existing pool - and someone who has been successful at creating money for themselves does not (in a capitalist society) take it from those around them.

Yes, companies compete in capitalist markets. There is a downside to that - that money is not free. You can't just go into business and expect money. You have to actually give the customer a BETTER deal to make money. That's how capitalism works to serve the customer. Only in communism or socialism do you have a scenario where someone can stay in buisness with an inferior product.
 
Well, kudos to you, Foolkiller for getting where you are. đź‘Ť But like I've said, there's always some who can get out of that rut... and more often than not, they deserve to.

Guys, I seriously don't think we can see it from each other's points of view. I understand where you guys are coming from, but I've seen honest, hard work and ingenuity go to naught when people are in a situation where they can't take advantage of it. Like I've said often before, there's poor and then there's poor. I've seen some who consider themselves poor who are actually doing well, making enough to live and provide education and a possible future for their kids... and those who scrape by, due to lack of education, opportunity, capital, whatever, and can't seem to make dent in their situations, no matter how hard they try.

It's hard to use an American example as a background for the entire world. Yes, people had it hard in the beginning... very hard... but they had a lot of land to expand across, and no borders to their opportunities... much like in the example given.

In Modern America, you can be dirt poor and still get three squares and a good education, and use that to kick yourself out of the rut, through scholarships, grants, student loans, and the like. My Mom came from that background. Her family was pretty poor when she was small, because Grandma was a Japanese immigrant, and this was right after the war, when the US Government disenfranchised the lot of these people. They lived a simple life, getting by on Granddad's paltry salary as a railroad worker (he was also a second generation immigrant... German Irish, I think). Through hard work and study, she and her siblings got out of that hole, she to become an accomplished academic, the others to find good jobs and/or successful businesses.

But I've seen lots of very intelligent, capable and hard-working students quit school simply because there isn't enough support or scholarships to keep them there. Work to study? Would be possible if there were enough jobs and enough cheap education at the tertiary level, but sadly, that sometimes doesn't happen.

The point is: There are people who are poor and can work. In the end, though, through lack of better opportunity, they don't go very much higher up the food chain, if at all. And some people, through no fault of their own (natural disaster killing crops, business edged out by bigger business), slip back down.

(And yes, I acknowledge that there are poor people who are just plain lazy... of course, those are the ones you see all the time... the ones who are working are too busy to sit around for photographs)

In many places of the old world and third world, there isn't that space or resources to expand or to exploit. Some get by by sticking to what they know: slash and burn farming, subsistence living off of game... but if they live near others, they can get crowded out by the more modern cultures, as modern society needs a lot resources to service itself.

Those who convert to a western or modern mode of life are stuck with the need to buy modern services... which means using modern money, which means competing on a capital market in which they are not competitive. I've got friends who farm. Modern methods, very good. In many tropical third world countries, though, these farms have been hit by the inability to compete... fewer growing seasons, more disasters, and cheap imports from big suppliers. Yes, it's sometimes about quality product, but what I'm trying to get at here is cost-effectiveness. If Country A can produce a million times what Country B can produce, it can undercut Country B's prices and still make a tidy profit and drive them out of the market... bankrupting businesses and farms. So switch to another market, you say? Try again. Country B has Country C and D to deal with, too. There's a pie there... but it's huge. The problem is, some of the players are huge, too. And cheap transport (due to scale) makes those players more competitive than the locals.

In an ideal capital system, there are limitless opportunities to create capital. But in reality, there's a limited market to buy some of that stuff, which is why it's usually the big suppliers or cartels that thrive. Fine create another new product... as long as it hasn't been patented, copy-protected or thought of a million times before... creating a product with more value for money, or a new product that creates its own market often costs money. And some people have more money to begin with.

I'm not espousing a communist system, mind. That's worse. By rewarding non-performance in the same manner as performance, they reduce economics to the lowest common denominator... the "average" worker. And as people receive less and less incentive to achieve, that average gets lower.

It's just that the ideal capitalist system kind of turns into something else once you apply it over a wider field... which, again, is why there's such resistance to the WTO. I never really understood it, myself, seeing it from the side of a consumer who's happy with the lower cost of goods... but some years down from the lowering of tariff barriers, after talking to and meeting with business owners all over, I can finally see how they're getting the short end of the stick. It wouldn't be so bad if everyone started from the same place... but if you're thrown in the middle of a game of Monopoly when all the other players have been playing for twenty turns or so... you get what I mean.

I'm participating as an observer / advocate / consultant for one project that aims to make a local automotive cottage industry competitive with the big boys. Do I think we have a chance in hell? Not really. But if there's a chance to create a few jobs and get someone's kids in College, we'll give it the old college try. The group I'm in talks with is trying to get government help, but only to bootstrap research and development, which they can't afford. As for licensing technology... forget it... we've tried with no luck. If any of you guys know someone who's willing to sell even obsolete technology for very little to us, send me a call. Not even the Chinese will sell at a good price, as they have their own products to protect.

RE: Proton versus Perouda: I need to read up on that more... forgive me for that... we use Proton as an example of what happens when you get complacent under government protectionism. And what happens when you start to source your parts from the lowest bidder.. :lol:
 
The problem with many of these third-world nations isn't that they can't compete. That would actually be the symptom. The problem is that their government has too much interference. Too many of these countries have rich politicians and a poor population. Their lack of jobs and opportunity is the same reason why they lack food, despite aid being shipped in on a regular basis. Their politicians have done worse than wealth redistribution. They keep it all for themselves.

Look at a few examples of countries that have in recent decades started some form of proper free market capitalist system: India, Hong Kong, even China. Although China has both the bad and the ugly, but they have what I would like to call a social-capitalist system where businesses are being given freedom but everything else is held down by Communism. It is a curious setup that I honestly believe will one day implode or go fully free market. A market can't thrive for long when the people are oppressed.

I like to look at India because I think they did this in a brilliant way. They started by taking advantage of bigger capitalist countries. They had American countries outsource jobs to them. They no longer had to compete with the American market because they were working with them. Once jobs began to get plentiful they even began privitizing their medical system and I have even seen some stories on how they are promoting medical tourism, where people from nationalized healthcare countries are traveling to India for better quality healthcare. Oddly enough Canada does the same thing for Americans seeking cheap healthcare. Anyway, India has taken from America and Europe and used their thriving markets to grow their own. They are far from complete, but they are succeeding.

Hong Kong is doing well because businesses were allowed to basically do as they pleased. Granted this led to a lot of sweat shops and other rights violations, but as the market grows you will see less and less of this because the workers will have more opportunity and not get stuck in a sweat shop kind of job when a decent one is around the corner. Of coure this system is threatened by China, so that will be one to watch.

Niky, I understand where you are coming from but when people are prevented from having opportunities to get out of poverty it is not due to businesses. It benefits bussinesses to help everyone leave poverty, because then they buy more, thus creating more, just like Danoff has been talking about. No business wants a potential customer to be too poor to use their services. Whether your job comes from a local auto maker or from Ford it doesn't matter, you have the job and you make money. Toyota has a plant here in Kentucky, only a little over an hour away from two Ford plants, we don't protest Toyota for taking business away from Ford. Instead we buy the Camry's that we make because it helps us.

When opportunity is lost the first people you should ask about it is your government officials. Officials have two ways to be greedy, power or wealth. If they bring in business they can over tax the people and get wealthy or they can benefit one business for a little side money, and if they just crush the people beyond the ability to complain then they become powerful. From observation it seems as if power is a more motivating factor than wealth. A politician that actually wants to represent the people and do what is good for them will create a business friendly environment that sets them all on equal footing and only taxes what is needed to keep the country stable. Even in America we don't have that.

Government is an evil mistress as it is the most destructive force in any society, yet it must be a part of society. Or to quote our first president:

Government is not reason; it is not eloquence; it is force. Like fire, it is a dangerous servant and a fearful master. – George Washington I love how he compares it to fire. It is perfect. Fire is a requirement if we are to live, but if you don't watch it and keep it under control you'll find your house in ashes.

If you want to grow the fruits of a succesful economy you have to stop the out of control forest fire first.
 
Niky
There's a pie there... but it's huge.

Economically speaking no. In terms of natural resources - which it seems you're poking at, there can be a pie in theory. In practice it rarely is the case, but in theory a natural resource can be a fixed amount. If one person (or organization) controls all of that resource AND it's a vital resource for existence, then they have a means of power that is equivalent to an invading army or a bazillion nuclear warheads.

In practice, there is no such limit. Even oil, which many people would point to as an example of this, is controlled by many different competing organizations, and exists in levels of difficulty to reach. So as one major oil controller jacks up his prices, the more difficult-to-reach oil becomes economically viable. And as it becomes viable, new technologies are developed to reach it - which reduces future costs further backfiring on our greedy oil horder.

The other thing that keeps natural resources from running out is the development of new more efficient methods of accessing those resources. As technology develops one needs a smaller and smaller slice of the natural resources than they used to - which stretches the existing pool of resources ever further, growing the pie.

Look at Japan and Hong Kong as examples of places that have become prosperous with very few natural resources. England and Taiwan don't exactly have a lot to work eith either.

Then we have sizeable nations near the equator in the middle of the most ecologically friendly environments - swarming with plant and animal life, fertile soil, trees as far as the eye can see - literally swimming in natural resources and they aren't half as propserous.

In africa they have diamonds. In the middle east they have oil. None of these areas are particularly propserous despite easy access to highly sought after natural resources.

The reason? Economic and government structure.

Hong Kong is free, and they make a powerhouse out of a speck of land. Iraq has been oppressed and they make a meager existance out of an ocean of oil.
 
Good points, both. đź‘Ť

Although I still won't give all big business the benefit of the doubt (guess I'm too liberal... :lol: ), I do agree that government structure has a lot to do with the economic problems of the world, and possibly more than business itself, as it allows itself to become entwined in the process of manipulating, creating, destroying and exploiting businesses to its own goals.
 
Back