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My Last Economic Thread

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Killer300
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Post: #11
RE: My Last Economic Thread

That's once again not what I'm talking about. Partially anyway. Competition fine. Until it drives wages incredibly low and makes crappy products at cheap prices. I'll reference Food Inc. for that example which you can watch on the Food thread.

12.12.2010 22:04
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RichardAWilson
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Post: #12
RE: My Last Economic Thread

The problem is that competition doesn’t drive wages lower. Wages rose during the Industrial-Revolution and your infamous Gilded-Age. Wages were much higher in 1880 than in 1830, just as wages in 1830 were higher than in 1780. Nowhere has free-markets, capitalism and competition driven wages lower. Wages have soared in China since market-reforms were introduced in 1978. Wages in Russia are now higher than during the Soviet-Era. Where wages remain lower are in countries such as North-Korea, which haven’t liberalized and which are still isolationists. Cuba is another country where living-standards haven’t been improving.

As for products, consumers choose which products to purchase and which products not to purchase. What you view as an inferior-product may be considered a superior-product to someone else. McDonalds offers a product, just as Little Debbie offers a product. If consumers don’t want the product, the business will fail. So it’s obvious that consumers love “Food Inc.” While human-beings often make poor-choices, it’s still their choice to make.
BTW, I’m drinking Dr. Pepper right now… Eyes and just finished smoking a Marlboro Smooth….. Yea, two bad choices, but still my right to make.

13.12.2010 05:50
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Helsworth
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Post: #13
RE: My Last Economic Thread

You can talk about choices when they are to be made. If people in poor countries don't have anything to choose, then that situation is bad.
You can't say that capitalist competition drove wages up (and did only good in the process), you have to take employment into consideration, advances in the sciences, implementation of new technologies, the adoption of work ethics etc. Lets study a little the positions of the competitors, what were the competition rules etc.


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13.12.2010 18:53
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e7th04sh
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Post: #14
RE: My Last Economic Thread

The reason why we have much of low quality cheap stuff is that Killer300 comes to a shop and buys it. Really. I have heard many complaints about this kind of stuff, but in the end people buy it. Some of them can't afford better, some of them like to have a lot at the expense of quality, some just can't manage their home budget well. As a consequence, the market reacts to the demand.

One thing you need to know is that it's likely that any increase in quality would be at the cost of great decrease in quantity. The production is at equilibrium, increasing either of these decreases the other, making the outcome less valued by customers. All evaluation is subjective, and market works with the evaluation that can be backed by money - so everyone has their part in planning the economical goals of a state, when they go to the shop and buy stuff that they want.

When talking about low wages, what do we really talk about? Because the wages only get lower with the concentration of capital, which means there is less employees, more employers. And this simply does not happen - the market reacts faster than any statistician could observe to any demand, and this situation means actually a demand for more capitalists, so the banks give better loans and the existing companies are worse managed. This might be very abstract, especially for people that deny free market, but each person that has capital has to actively work with it to make profits, and the more capital they have, the lower their profit proportionally will be. So the less people get the more money, the less proportionally they get. Now this is good for them, because in real terms they have more cash for the same activity, but they cannot combat the rules of supply & demand, and soon the capital flows from them to some other people. This cannot be observed easily - it's like trying to observe one molecule of water in a glass. The water in the glass as a whole is immobile, flat etc. the molecules are chaotic. They even out and submit to the inevitable laws of the market, even if random deceptive patterns are more frequent than in the world of physics.

13.12.2010 20:23
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Anthonie
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Post: #15
RE: My Last Economic Thread

RichardAWilson Wrote:
Rubbish. Coke shouldn’t be punished just because consumers drink Coca-Cola instead of the store-brands, just as Red-Bull shouldn’t be punished because consumers choose it over Pepsi’s Monster-brand. There’s never too much competition. Competition is the engine of innovation.

I totally agree, this is not what we call competition. There are some business ethics which we should follow at all cost because there ethics and rules are the base for the human beings.

07.03.2011 15:26
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