Even More Questions Sandwichman | January 4, 2021 1:14 pm US Economics US/Global Economics Even More Questions What is capital?What power does capital have when invested in machinery, lands, agricultural improvements, etc.?What happens to individuals when they have experienced the accumulative power of money? Comments (2) | Digg Facebook Twitter |
3. What happens to individuals when they have experienced the accumulative power of money?
suddenly they have the power to delegate their work which means that they develop higher low density cholesterol and higher blood pressure as their weight increase prompts them to buy suspenders to keep their trousers from sliding down.
2. What power does capital have when invested in machinery, lands, agricultural improvements, etc.?
the power of compounded profits which increases inequality exponentially over time.
1. What is capital?
Das Kapital can refer to working capital, fixed capital, feed stock or the financial equivalents to the above. why should an economic entity invest savings into capital?
to prevent inflation from destroying the value of the savings. in other words, if there were no inflation, but instead substantial deflation, the savings would increase in value, buying power, provide an automatic return on savings without the risk of losing the principal of savings from the process of investing into capital. why should the savers be rewarded for postponing they’re spending?
the frugality of the saver allows prices to fall so that poor people will have the resources to buy their subsistence items at a lower price, items of goods and services. as all prices fall by virtue of the savers’ frugality, investors in capital will have the opportunity to buy their fixed-capital and feed stock at a lower price in other words, deflation provides a channel of automatic investment of the savings, an automatic investment which is not plagued by risk, a zero risk investment. why doesn’t Congress provide a budget surplus that will provide deflation for the purpose of risk free automatic indirect investment? A more efficient economy?
because Congress has to spend tax money for votes, votes for the incumbents, incumbents who are bucking for more inequality.
The rich you have
1)what is capital: the answer given in freshman textbooks is adequate for most purposes. trouble is once they have answered it to their satisfaction neither the author nor the students ever think about it again..not even when it has disappeared in a shift in the wind leaving behind desolation and despair.
2) what power does “invested” capital have: prety much the same as any other used consumer good. might or might not have any value…as scrap or further productive use.
3)what happens to individuals: they want more.
[“human capital” can disappear when your skills become obsolete or the money (another word that needs more thought than people give it) “invested” in your education goes to waste when your country drafts you into its army.]