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> > He thinks you have to "save" to "invest" later. > Because that's the truth. Well, start telling this VW, BASF, Dow Chemical, Ford and the whole bunch the
by jayalpha 8y ago
> > He thinks you have to "save" to "invest" later.
> Because that's the truth.
Well, start telling this VW, BASF, Dow Chemical, Ford and the whole bunch the next time they take a billion dollar loan in expectation that it will pay off. Even Intel has 30 Billion long term debt.
> You can't just produce "things" out of thin air so the
> idea that you can finance future production without
> (someone, somewhere) deferring present consumption is not > really valid.
Exactly this is what capitalism is about. The the pressure created by debt, is exactly what makes capitalism very dynamic.
> Unless, of course, you just print up a bunch of money and
The idea that "only gold is money" was stupid, is stupid and always will be stupid. Even with gold back money you would be able to take loans. The only thing you would achieve is lower economic growth.
> And that Robinson Crusoe bloke stuck on an island...
THe Robinson Crusoe guy is perfectly a guy that Mises is describing. But he is closer to a middle ages barter economy than to anything called capitalism.
This touches some things:
"In simplest terms, our problem is that we as a people are no longer getting richer. Instead, we are getting poorer, as evidenced by the difficulty young people are now having getting good-paying jobs. As we get poorer, it becomes harder and harder to pay debt back with interest. It is the collision of the lack of economic growth in the real economy with the need for economic growth from the debt system that can be expected to lead to collapse."
https://www.resilience.org/stories/2014-02-12/limits-to-growth-at-our-doorstep-but-not-recognized/ https://www.resilience.org/stories/2014-02-12/limits-to-grow...
- UncleEntity 8y agoWait, you literally think Mises says that loans don't exist? You know he wrote whole books on the subject of modern banking and in none of them did he claim "only gold is money", right? So, yes, citation please?
- jayalpha 8y agoHe wobbles of "saving" and "investing". Sitting on a desk, having worked his whole live beyond a desk and never for a free market enterprise, he tries to understand capitalism. Do you remember his quote: " “Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.” — Ludwig von Mises Wow. Look who is talking. A master or an idiot? You never know. Out of curiosity, can you show me an economic boom that does NOT come with a credit expansion? The sentence is a tautology. Meaningless. "The Banana is big but it's shell is bigger". Wow.
- UncleEntity 8y agoUh, huh... What he is talking about is the boom-bust cycle and not whatever you're claiming which, honestly, I have no clue.
- jayalpha 8y agoThere are no real insights by Mises, except an extraordinary well description of a free market, middle ages, barter economy.
- UncleEntity 8y agoThat and a devastating attack against socialism (from which they never recovered) which is the very reason you felt the need to engage in ad hominem attacks... But, alas, if had ever actually read anything he wrote you would see his insights don't really apply to a barter economy at all -- unless they want to do something crazy and solve the coincidence of wants problem to evolve into an actual modern economy.