This is long, but please go through them all. And yes, there's a question for you at the end answerable only after you're clear of what this long essay is about.
Everything is about demand and supply. In order for a company to have sustainable growth, it must either increase production (thus increase sales, hopefully) or reduce costs (including human capital by substituting it with the latest technologies) or both.
Imagine if all the companies around the world succeeded in doing both, then it will be super high productivity and mass unemployment (or underemployment). When this happens, how in the world will the market be able to pay for all the excessive products/services when most are either unemployed or underemployed and thus can't afford much?
Governments will of course introduce new projects to stimulate growth and employment but I believe these new projects will still be futile because the modern consumerism is self-created (not natural) and has the tendency to break down. Next, banks can create economic spending by giving out easy credits that make a lot of people bankrupt, which is also equally unsustainable.
Progress is there to be seen but it's only at certain places, not every places. When a country or a company grows, it grows at the expense of others. Introducing more money into the market merely increase inflation that leaves a lot of people at disadvantaged. More loans merely create more debt that leads to recession.
In the end, when it's all about growth, I really don't think capitalism is sustainable because one's gain is another's loss. Of course everyone can win, but that'll be illusory by splitting the value of $1 to $0.5 by increasing things from $1 to $2, for example, to create the illusion of growth. The current capitalism is about substituting resources with money. But this is wrong. While money can't be depleted through constant credit creation, a majority of the depleted natural resource can never be replaced.
Capitalism is where the society exist to serve the economy, not the economy to serve the society. We see a lot of advertisements promoting new demands (harmful and unnatural demands) to stimulate sales and growth. In the end, the richer one group gets, the poorer the other group. Equal wealth distribution is critical. This is to eliminate rich-poor gap between people. But if everyone prefer only to uphold the status quo, motivated by selfishness and greed, then sooner or later the economy will come crashing down without revival. By that time, a lot of resources have gone to waste. My idea is this - the world can only survive (in the near future) by abolishing the economy, making it serve the society instead of the other way around, eliminating unequal wealth distribution (making everyone equally as rich/poor as another), and reforming our current system of living without working (by replacing every human capital in production with technologies). Other than all these, life will never get better. People in turn must change themselves to be cooperative, not greedy, and work not because they have to but because they want to contribute.
Now, I want to hear your opinion.
2006-12-16
20:35:50
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5 answers
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asked by
Anonymous
in
Economics