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Or you can just abolish the fiat soft money system, let the corporations go out of business, let efficient small companies take their place and then you'd have
by jongjong 8mo ago
Or you can just abolish the fiat soft money system, let the corporations go out of business, let efficient small companies take their place and then you'd have founders who actually care about long term results in charge and they could manage the company however they want. If they do a bad job, they'd go out of business. If they do a good job, they'd stay afloat or maybe even grow a little. And over time, all the companies with incompetent leaders would be wiped out, everyone would get a fair shot at being a leader and everyone would end up in their rightful place and capitalism would function as it was designed.
- ninalanyon 8mo ago> abolish the fiat soft money system, And replace it with what?
- kranke155 8mo agoYou could read The Long Twentieth Century by Giovanni Arrighi. Fiat money is not the problem, the financialization of economy is actually a common by-product of aging great monetary powers. The US chose to become a monetary power in 1945, rejecting Keynes' Bancor proposal. Then in 1971, it found it couldn't keep it working, due to the very reasons Keynes explained to them at Bretton Woods. Arrighi argues this has happened 4 times already. So Fiat money and the financialization of life is just an outcome of something else - that being a monetary superpower is just not sustainable.
- jongjong 8mo agoI don't live in the US but I'm definitely feeling the negative effects of the fiat system really harshly. From my perspective, I believe that the effects would be similar regardless of which country had the superpower status. Interlinked fiat currencies are just a perfect mechanism to allow militarily or economically dominant countries to manipulate the global economy in their favor. As a superpower, you can leverage corruption in foreign countries to load them up with debt denominated in your currency to allow you to export your inflation to them... You can also leverage foreign corruption to sign large, unjust trade deals or oversized military contracts which will prop up your currency. Still, at the root, I blame the system itself, not specific participants.
- pjc50 8mo agoNone of those problems requires money printing.
- jongjong 8mo agoI'm keen to read the book suggested by the previous commenter and have my view challenged but my current understanding is that money printing plays a major role due to incentives. People are far more willing to spend large amounts of other people's money on frivolous things than they would if it was their own money. Also, the ability for a government to create large amounts of money on demand allows them to spend on destructive activities which can create opportunities for certain connected people in the private sector. Price discovery in the markets cannot work if one party has a theoretically unlimited amount of currency. It just devalues the currency. If the government knew that the budget was limited and they only had x amount of money to spend that year as an absolute maximum, they wouldn't be sending it to foreign countries as foreign aid.
- dv_dt 8mo agoThe tulip craze and many other market excess crashes occurred under non-fiat currency schemes. The money system being fiat or metals backed or crypto is incidental to "let the corporations go out of business, let efficient small companies take their place". If you want smaller corporations and more competitive marketplaces, it's anti-megascale taxes and anti-monopoly regulation that can achieve that.