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Imagine an agrarian low density country. There are no IT professionals in this country. Everyone more or less works for themselves on their homestead. The divis
by incomingpain 4y ago
Imagine an agrarian low density country. There are no IT professionals in this country. Everyone more or less works for themselves on their homestead. The division of labour and the economies of scale basically dont exist.
As this country migrates to inudstrialization, what its really doing is implementing the economy of scale. It's difficult to get going though, if everyone is a poverty farmer, nobody is buying your widget. We have however measured and seen this entire process happen in about 50 years, several times now to huge success.
Despite this, people still believe the economy is zero-sum. These Malthusians in their politics believe that for the western world to be rich, requires them to rob the wealth from other countries. Which certainly has some truth to it.
This isn't how it works however, you can have a free trade agreement with palestine, but if nobody actually tries to trade goods, buy or sell goods. it doesnt matter. Each side in this trade of goods thinks they are getting a deal, otherwise they wouldnt do it. So we should in essence end up with excess on both sides. If someone selling their goods in palestine to germany has buyers. Then they can invest in producing more of those goods off the same labour hours.
BUT we have a problem: https://www.weforum.org/agenda/2018/08/were-living-in-the-age-of-the-zero-sum-economy/ https://www.weforum.org/agenda/2018/08/were-living-in-the-ag...
The malthusians, aka world economic forum, believe we are in fact zero sum because there are so many metrics since 1971 showing we are zero-sum. They aren't wrong. So what happened?
https://seekingalpha.com/article/4356705-what-went-wrong-in-1971 https://seekingalpha.com/article/4356705-what-went-wrong-in-...
So basically what happened is the gold standard broke. In so doing, these fiat currency countries technically lose the ability to tax. Instead of tax, they should be printing the money they spend and NEVER take any debt. When they tax AND print money causing inflation. It's a double tax and removes, paying taxes on taxes on taxes.
Basically government is paying for itself, or rather failing to pay for itself by having circular taxation. This however breaks the economy and turns it to zero-sum.
This is why you also see everyone promising to lower taxes, if fiat currency without gold standard is going to stay, politicians basically have to reduce taxation to 0. The problem, they aren't doing it. They want to do little kickbacks to their supporters in specific tax deductions only.