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Assumptions the article makes: 1. People are stupid, they cant and dont adapt. 2. The market system is rigid and exploitative. Can we expect the three people w

by nandan 19y ago

Assumptions the article makes: 1. People are stupid, they cant and dont adapt. 2. The market system is rigid and exploitative. Can we expect the three people who were hired instead of John Ulviden to make the same "mistake" he made? Probably not. If they were people looking out for their own self-interests, they would factor in the "mistake" John made and make sure they dont step over the "acceptable" amount of sales. What sort of an effect does this have for Adidias? They reach a high-point in sales due to the energy and creativity of John, but then because of what they did to him, their sales are no longer going up. They have just lost the opportunity to have John take their sales to the next level. And what sort of an opportunity does this present to a competitor like Nike for example? They would probably want John for more than one reason: For his abilities and also for the relationships he has with the customers he won over for Adidas. Heck, why ramble when there is such eloquent exposition at hand: "In addition to these endless pleadings of self-interest, there is a second main factor that spawns new economic fallacies every day. This is the persistent tendency of men to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups. It is the fallacy of overlooking secondary consequences." - Henry Hazlitt in "Economics in One Lesson" http://jim.com/econ/contents.html http://jim.com/econ/contents.html

NSX2 19y ago
But most people either are stupid and/or can't change because the system is setup to maintain the status quo. If you had any clue how money is introduced into the system, you'd be outraged that banks had the nerve to try to pull such a scam at the expense of the general population. Yet it's been going on since the Medicis and nothing much has changed, even to this modern day. Meanwhile we've created unprecedented wealth over the last 50 years, and yet while being obsessed with money, every person and company, big or small owes the banking establishment tons of money which we either must pay off by assuming more debt - or by handing over the stuff of our production - as is happening now with the housing industry and foreclosures.
- chaostheory 19y ago
  what's a better system then - more socialism and government control? imho that too will lead to maintaining a status quo. The only things that change are the people at the top (gov officials and their families), a lot of resources will be wasted (compared to a more capitalist system), and that it's much much harder for people at the bottom to move up (not to mention less incentive). O yeah, since we're talking about government controlling most of the resources and distribution, you can probably kiss your rights goodbye too. It's not like this hasn't been done before with disasterous results... there's a reason China changed economic systems... "most people either are stupid and/or can't change" doesn't it make sense then for the system not to reward them for their behavior; and instead to reward people that can change and work both hard and smart?
  - NSX2 19y ago
    I don't think you understand how the hidden side of "capitalism" works - as long as a few people continuously control how much money is in the money supply via banks, whether you realize/like it or not, the whole world is socialist in that respect. >doesn't it make sense then for the system not to reward them for their behavior; and instead to reward people that can change and work both hard and smart? I think you're a bit too optimistic about the nature of the system and the people who run it; it's not setup to "reward" anybody but the people who set it up to reap wealth at other's expense. Do you think if you "do the right thing" and "work hard" and be really smart the bankers and billionaire's are secretly getting together going, "That guy's doing the right thing - let's reward him" Please. First they'll see you as a threat and try to figure out how to get rid of you or control you. Last thing they want is to "reward" you for "smart behavior"
    - chaostheory 19y ago
      "as long as a few people continuously control how much money is in the money supply via banks, whether you realize/like it or not, the whole world is socialist in that respect." I agree that is a problem with capitalism, specifically with fiat currency; but it can be corrected if we slowly move back to something akin to the gold standard. It's fixable. Not to mention this level of corruption pales in comparison to a non-capitalistic system. Capitalism isn't perfect, but it is the lesser evil. "Do you think if you "do the right thing" and "work hard" [that you'll be rewarded]" I live in silicon valley. I meet people all the time who have been rewarded for being clever (who come from lower class or middle class backgrounds). A lot of posts on YC have already disproven this point. You're ignoring a lot of data; not to mention you're just giving a lot of conjecture without hard facts. No offense, but I can list a lot of examples: Paul Graham, Jerry Yang, Bill Gates, Sam Walton, the list goes on and I'm not even including foreign business men. Your argument is really weak. Just look at China and the changes that occurred after they switched economic systems. "First they'll see you as a threat and try to figure out how to get rid of you or control you. Last thing they want is to "reward" you for "smart behavior"" Yes, that called traditional communism, not capitalism. Again why do you think China switched? (even N. Korea is trying to switch) History has already disproven your argument. O yeah if you actually believe in what you're writing WHY are you trying to do a startup?

by nandan 19y ago

NSX2 19y ago

But most people either are stupid and/or can't change because the system is setup to maintain the status quo. If you had any clue how money is introduced into the system, you'd be outraged that banks had the nerve to try to pull such a scam at the expense of the general population. Yet it's been going on since the Medicis and nothing much has changed, even to this modern day. Meanwhile we've created unprecedented wealth over the last 50 years, and yet while being obsessed with money, every person and company, big or small owes the banking establishment tons of money which we either must pay off by assuming more debt - or by handing over the stuff of our production - as is happening now with the housing industry and foreclosures.

chaostheory 19y ago
what's a better system then - more socialism and government control? imho that too will lead to maintaining a status quo. The only things that change are the people at the top (gov officials and their families), a lot of resources will be wasted (compared to a more capitalist system), and that it's much much harder for people at the bottom to move up (not to mention less incentive). O yeah, since we're talking about government controlling most of the resources and distribution, you can probably kiss your rights goodbye too. It's not like this hasn't been done before with disasterous results... there's a reason China changed economic systems... "most people either are stupid and/or can't change" doesn't it make sense then for the system not to reward them for their behavior; and instead to reward people that can change and work both hard and smart?
- NSX2 19y ago
  I don't think you understand how the hidden side of "capitalism" works - as long as a few people continuously control how much money is in the money supply via banks, whether you realize/like it or not, the whole world is socialist in that respect. >doesn't it make sense then for the system not to reward them for their behavior; and instead to reward people that can change and work both hard and smart? I think you're a bit too optimistic about the nature of the system and the people who run it; it's not setup to "reward" anybody but the people who set it up to reap wealth at other's expense. Do you think if you "do the right thing" and "work hard" and be really smart the bankers and billionaire's are secretly getting together going, "That guy's doing the right thing - let's reward him" Please. First they'll see you as a threat and try to figure out how to get rid of you or control you. Last thing they want is to "reward" you for "smart behavior"
  - chaostheory 19y ago
    "as long as a few people continuously control how much money is in the money supply via banks, whether you realize/like it or not, the whole world is socialist in that respect." I agree that is a problem with capitalism, specifically with fiat currency; but it can be corrected if we slowly move back to something akin to the gold standard. It's fixable. Not to mention this level of corruption pales in comparison to a non-capitalistic system. Capitalism isn't perfect, but it is the lesser evil. "Do you think if you "do the right thing" and "work hard" [that you'll be rewarded]" I live in silicon valley. I meet people all the time who have been rewarded for being clever (who come from lower class or middle class backgrounds). A lot of posts on YC have already disproven this point. You're ignoring a lot of data; not to mention you're just giving a lot of conjecture without hard facts. No offense, but I can list a lot of examples: Paul Graham, Jerry Yang, Bill Gates, Sam Walton, the list goes on and I'm not even including foreign business men. Your argument is really weak. Just look at China and the changes that occurred after they switched economic systems. "First they'll see you as a threat and try to figure out how to get rid of you or control you. Last thing they want is to "reward" you for "smart behavior"" Yes, that called traditional communism, not capitalism. Again why do you think China switched? (even N. Korea is trying to switch) History has already disproven your argument. O yeah if you actually believe in what you're writing WHY are you trying to do a startup?