Will the CCP's Cure for "Short, Flat, Fast" Kill the Golden Egg Laying Goose?
Say Goodbye to Small Cap Entrepreneurs and Low Consumer Prices, China! Hello INFLATION!
Pareto distinguishes between two types of Capitalists which Socialist writers typically conflate he says writers have confused, and persist in confusing, under the term Capitalists. One, owners of savings and persons who live on interest from property. And two, promoters of enterprise, entrepreneurs. In reality, these two sorts of Capitalists often have interests that are diametrically opposed and stand in even greater conflict than the interests of the classes known as Capitalist and Proletariat.
From the economic standpoint, it is to the advantage of the man of enterprise, the entrepreneur, that the interest on savings and another Capital that he borrows should be the lowest possible. It is to the interest of the saver that it should be as high as possible. The promoter of enterprise profits when the goods he produces go up in price. While rises in the prices of commodities are of slight importance to him, he finds compensation in the profits netted by his own goods. But all such increases in price are to the loss of the mere saver. Tax imposts on the goods he produces do little harm to the entrepreneurs. In fact, they are sometimes an advantage in that they scare off competition. But they are always injurious to the consumer, whose income derives from lending of savings at interest. In general, the owner of enterprise can always pass on to the consumer the increase in cost that results from heavy taxes. The mere saver almost never can.
Pareto's careful consideration between the functions of the entrepreneur and the pure capitalist anticipates the Austrian School of Economics in interesting ways. The model of artificially low interest rates which cheap credit, high time preference, and immediate consumption adopted by Western governments since the second half of the 20th century has been to the advantage of promoters of enterprise and to the disadvantage of the owners of savings.
From the economic standpoint, it is to the advantage of the man of enterprise, the entrepreneur, that the interest on savings and another Capital that he borrows should be the lowest possible. It is to the interest of the saver that it should be as high as possible. The promoter of enterprise profits when the goods he produces go up in price. While rises in the prices of commodities are of slight importance to him, he finds compensation in the profits netted by his own goods. But all such increases in price are to the loss of the mere saver. Tax imposts on the goods he produces do little harm to the entrepreneurs. In fact, they are sometimes an advantage in that they scare off competition. But they are always injurious to the consumer, whose income derives from lending of savings at interest. In general, the owner of enterprise can always pass on to the consumer the increase in cost that results from heavy taxes. The mere saver almost never can.
Pareto's careful consideration between the functions of the entrepreneur and the pure capitalist anticipates the Austrian School of Economics in interesting ways. The model of artificially low interest rates which cheap credit, high time preference, and immediate consumption adopted by Western governments since the second half of the 20th century has been to the advantage of promoters of enterprise and to the disadvantage of the owners of savings.
5 comments:
China Imperialism arising?
I don't know. The CCP certainly wants more access to raw materials, but whether it seeks to attain them through commerce or military conquest remains to be seen. Montu or Hathor... to whom will Amun Ra turn?
Will Mut be visited by Montu or Hathor (via Kamutef)
We'll have to see whether or not they choose to walk the Avenue of the Sphinxes.
More on the Dromoi (Sphinxes) roads.
In essence, the "Dromos of Sphinxes" in Luxor is a 2.7 km avenue connecting the Karnak and Luxor temples, lined with both ram-headed sphinxes (representing the god Amun) and human-headed sphinxes (representing the king)
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