LovePosted by Eskil Sat, December 25, 2010 02:43:01
I read an article with an archaeologist bemoaning that Jerusalem was the
most hopeless place on earth to conduct archeology in. You would think
the rich history of Jerusalem would be a goldmine for any one interested
in archeology, but No. Why? Because everyone who lives there is already
convinced of a version of history before they even put the shovel in
the ground. The only evidence they find is the evidence supporting what
they already believe.
I read a fair bit of financial news and the stupidity or lack of basic
understanding of economics that exists in finance is staggering. The
idea of capitalism is that the profit motive, will motivate people to do
good things. Its clear that it does motivate some people, but no one
seems to care much what it motivates them to do.
If a bank manager gets a cut from the profit of the bank, will he or she
give the customers the best advice how to keep their money, or try to
make the bank take their customers money?
Is a private school likely to engage parents in order to deal with
bullying if it may means the parents may move their kids to another
school once they find out the school has a bullying problem?
If you give money to private hospital, its their prerogative to spend as
little as possible of that money on health-care and keep as much as
possible in profits. They may even not want people to get better because
without patients, how will they make their money?
I'm being told that competition in an open market leads to the best
products winning, but if that was true advertising wouldn't exist. Yes,
the best products would win if every one had the all information, but to
think that is the case is ludicrous. How am i suppose to choose the
best doctor? I'm not even remotely qualified to say if a doctor is good
or bad, because I haven't gone to medical school, that's why i go to a
They tell me I should be a "educated" consumer, but I cant go to china
to check the worker conditions every time i buy a pair of sneakers, no
It takes a 2 year old to figure out that everyone cant know everything,
yet we build our entire financial system on this premise. The entire
stock market is built upon the idea that its fair because everyone has
the same information, (proving that it isn't fair at all). We have a
system where its not important to do good things, but to make people
think you are going good things.
Another theory economists talk about is "trickle down economics"; the
idea that if we let people with a lot of money keep their money they
will stimulate the economy by buying stuff. Coincidentally, people with a
lot of money has put this theory forward (go figure...). Well, the very
definition of rich is someone who takes in more money then they spend,
making them, well, rich. So isn't rich people then the very definition
stagnation rater then stimulation? Giving someone who is poor 100$ will
always stimulate the economy better then giving it to someone already
has got so much money that they have chosen not to spend it all. With
higher gaps in income, fewer people will get opportunities and therefor
we as a society will have less success. Its a big problem for society
and ignoring it is like standing on the titanic and saying "Why should I
care about a leak on 3rd class deck, I ride 1st class."
We have millions of economists, yet very few managed to predict the
crash. Why? -Because they are believers. They have a vested interest in
proving that what ever serves them is true. It is very scary to have the
majority of this planet be runned on this very shaky ground. The Euro
was not nearly thought through, the US has no ability to be honest about
them selves and what needs to be done, and china has massive housing
bubble and no previous experience of managing a financial crisis.
I have resorted to think that the best financial advice you can get, you
get from cab drivers. When they tell you to buy gold, IT stocks, or
real-estates, then you know a crash is near.
Any one who says that capitalism has had no virtues, clearly is
delusional, on the other hand it has been poor at solving issues like
health care, and education while creating massive environmental
problems, and failing to see that is equally delusional.
The Soviet union had 0% unemployment, and provided education, health
care and housing for all. Numbers that should be the envy of any nation.
So why did it fail? Because its leaders where believers, They believed
so strongly in their systems successes, that they failed to recognize
its failures; lack of freedom, innovation, and accountability. They
thought that one solution, one system would fix all problems. Lets not
make the same mistake.
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