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    Economics and snake oil

    kvs
    kvs

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    Economics and snake oil Empty Economics and snake oil

    Post  kvs on Thu Dec 10, 2020 9:52 pm



    The above is an example of a snake oil con artist posing as an economics theoretician.

    What he says sounds rational and valid.   But critical details are missing which make his ideological talking points
    ridiculously stupid.  

    1) Having workers submit to lower wages is not an economic cost but a savings.   This is not mitigated
    by the exaggerated claim that only men will be hired if women are paid the same for the same job.   Employers
    depend on work applicants.   Not all jobs will have an excess of male applicants to pick over the women.  
    Men do not want to work as secretaries for example.   And women are not too keen on physically strenuous work.
    Employers can use the lower wage accepted by women to put downward pressure on the wages for men.
    Friedman assumes from thin air that there is some sort of rational wage for any job.  History demonstrates
    the opposite.   Workers were paid next to nothing and worked 12 hour days with no vacations back in the
    late 1800s.   Every employer wants to minimize wages and will use any tactic to achieve this.   So giving
    women equal pay for equal work actually keeps the wages higher.   That is true even if men are selectively
    hired.  

    2) Friedman worships the magical free market of no rules and survival of the fittest.   His assumption of
    fair play in such a system is moronic.   Fair play costs more.  It is always easier to cheat and to abuse
    workers with low wages and no benefits.   This is why workers organized unions and took collective action
    to establish fairer wages for themselves.   This is now forgotten, including by the fake PC left.   He and
    his ilk can pull all sorts of excuses, but laissez-faire results in mafia oligarchies.   The USA gilded era was
    exactly that.   The US tycoons may have been more legit than the Russian crooks of the 1990s, but that did
    not make working as their low wage slave any easier.   Friedman and his ilk cannot use the fairness fought
    for by real socialist workers' movements as evidence of intrinsic laissez-faire self-regulation.   If everyone
    abided by the ideology of lassize-faire, workers would still be making cents an hour and living in corporate
    run traps where their shelter and food was all provided by their employer.   A perfect feudal system.

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    GarryB
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    Economics and snake oil Empty Re: Economics and snake oil

    Post  GarryB on Fri Dec 11, 2020 9:50 am

    Interesting that the minimum wage idea doesn't work at management level... apparently people who sit in big offices need large salaries and holiday pay and excellent medical cover and a company car and a company car park, not to mention those power lunches they have to attend that get paid for by the company... they almost don't have to spend all that money they receive in their salary and not to mention bonuses for making the minimum wage front line monkeys exceed their goals for this month...

    The more you look at it the more a company structure looks like a pyramid scheme where the founders and top people are essentially exploiting the work power of the large numbers below them...

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    kvs
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    Economics and snake oil Empty Re: Economics and snake oil

    Post  kvs on Fri Dec 18, 2020 9:28 pm

    https://www.zerohedge.com/markets/ubs-chief-economist-there-no-inflation-consumers-are-just-imagining-there

    Reported consumer price inflation is low in the world’s major economies. Consumers are not inclined to believe this. Consumers are likely to think that inflation is higher than is being reported.

    Consumers are subject to frequency bias when thinking about inflation. Consumers remember the prices of things that they buy frequently, and forget the prices of things they buy occasionally. Consumers’ views on inflation are driven by price changes for high frequency purchases.

    Yeah, because higher priced purchases that occur rarely are just soooooo important.

    The CPI racket hides the inflation in real estate using some BS "rent equivalent". Then it uses the ludicrous "hedonics adjustments"
    to reduce the price of things like TVs based on extra features. Basically this makes it impossible to compare the price of a TV
    over time. The fact is that these features are not some company breaking manufacturing expense so should be ignored.

    The food inflation in the part of Canada I live in is over 7% per year. It has marginal impact on the crock of shit known as the
    CPI because some 0.12 to 0.15 weight factor applied to food. As if all families in Canada and the USA spend only 12% or 15%
    of their expenses on food. Of course expenses such as mortgages and rent are "inflation free" and they have higher weights.
    The CPI is a total joke.

    kvs
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    Economics and snake oil Empty Re: Economics and snake oil

    Post  kvs on Fri Jan 01, 2021 6:50 pm



    On the subject of free trade and the destruction of Russia's economy during the 1990s.   The scam at play is the
    claim that free trade makes countries richer while protectionism makes their economies and technological capacity
    stagnate or atrophy.   This claim is BS for many reasons

    1) We clearly saw in Russia and elsewhere, free trade leading to the deliberate shutdown of manufacturing in
    aircraft and other high tech industries with the pressure to replace this production with imports.  So Russia's
    comparative advantage in oil and gas was to invoked to specialize it into an oil banana republic
    dependent on this one resource extraction activity which of course would be done by western oil corporations.
    The bitching about Russia being a gas station posing as a country is thick and rich BS coming from the same
    clowns that pushed Russia to throw away all other industry to specialize in oil and gas exports.

    2) No developed country ever adhered to free trade during its critical development stage.   This includes
    the USA itself, Japan, South Korea and any of the European countries.   The reason for this is obvious
    and Russia is an example.   Unfettered access by foreign corporations to an economy will mean that they
    will own it since they have no start-up costs and have economies of scale.   Nascent companies in a
    developing economy (not 3rd world) cannot compete with rich transnationals.  Full stop.  So pimping
    free trade to Russia and any transition or developing economy is pure colonialism.

    3) David Ricardo's analysis is simplistic BS.   Comparing advantages on a product by product basis is not
    a valid systems analysis approach.   You can't just fix all the other variables and vary one of them to
    "optimize" the multi-variate problem.    You have to vary all of them at once.   Using the ignorant analysis
    of someone from the dinosaur era today is grotesque.    Ricardo did not even know about optimization
    mathematics.  

    https://en.wikipedia.org/wiki/Mathematical_optimization

    Like all economists, he was in his own bubble.   So his product-by-product nonsense excludes the negative
    impact on the functionality of the total economy from the shut-down of domestic industry and any form
    of economic activity that supposedly is marginally more expensive than imports.   His theories are total
    rubbish since under his import-fetish economics the GDP would shrink to optimize the time-snapshot price
    of some good or service.   Every dollar of imports with an associated shutdown of domestic production
    (or service generation) translates into a two dollar GDP drop.   GDP drops lead to unemployment and the
    fall in domestic demand, which results in a GDP implosion feedback loop.    

    Free trade only works for developed and powerful economies that can engage in colonialist expansion.   It is
    poison for any less developed or even smaller economy.   And we see this in Canada, which has basically been
    taken over by transnationals.   This has not improved the Canadian standard of living.   Basically, the
    reason why Canada was not made into a 3rd world toilet outright is pure politics of stability and NATzO
    cohesion.  Canadians are fed some crumbs to keep them happy.   The transnational corporations can
    afford such charity in special cases since they can focus on the rape and pillage of other countries.
    kvs
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    Economics and snake oil Empty Re: Economics and snake oil

    Post  kvs on Fri Jan 08, 2021 5:58 am

    https://www.strategic-culture.org/news/2021/01/03/how-an-austrian-and-british-malthusian-brainwashed-a-generation-of-americans/

    The creation of false opposites has been a long-standing obstacle to human progress.

    From the ancient pleasure-seeking Epicureans who argued against the logic-heavy Stoics of ancient Rome to the war of “salvation through faith vs works” that schismed western Christianity, to the chaotic emotional energy driving the Jacobin mobs of France whose passions were only matched by the radical Cartesian logic of their Girondin enemies; humanity has long been manipulated by oligarchs who knew how to set the species to war against itself. Although these operations have taken many forms, the desired effect has always been the same: divide-to-conquer bloodbaths which drowned out the saner voices of Cicero (executed in 44 BCE), Thomas More (executed in 1535 CE), or Jean Sylvain Bailly (executed in 1793 CE).

    Today’s polarization across the Trans-Atlantic world has reached a fevered pitch with the “right wing conservatives” shouting for liberty and less government while left wing liberals call for more government and top-down reforms of the system (with Great Reset technocrats laughing in the background).

    This article has some good points but as usual everything needs to be put into full context.

    Malthus is a whipping boy for the "infinite resources = infinite human freedom" lemmings. Dismissing the fundamental aspects of
    the analysis made by Malthus is moronic. Whether some regime wants to leverage for nefarious purposes the finite capacity of
    this planet to support humans has no rational link to the validity of the latter. In some ways this sort of "thinking" is the same
    as the PC totalitarian BS about denying the differences between males and females to force "equality". If you can't have equality
    without such tricks, then you are not even trying. Believing that recognition of resource limits will result in oppression is the
    same sort of inanity.

    But the main point in this article is valid. The left and right as structured in the west and really around the world is a false dichotomy
    based polarization. Both limits are away from the reality-driven optimum. Russia for the moment has figured this out and realizes
    that pure monetarism is the same BS as command economy dictatorship. At the end of the day some sort of star chamber makes
    all the decisions while idiots fight over "ideals". May as well have the elected government make these decisions instead of a
    shadow power with the government being the sock puppet. Naturally, western propaganda has conditioned the sheeple to view
    this as bad. Because private dictatorships are just so much better than government ones. The fake western left will never attack
    the oligarchy and you can see how its PC idiocy is enabled by western corporations who pander to BLM and all the identity politics
    depravity. The western left is their sock puppet like the western right.


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    andalusia

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    Economics and snake oil Empty Re: Economics and snake oil

    Post  andalusia Today at 11:22 am

    kvs wrote:https://www.strategic-culture.org/news/2021/01/03/how-an-austrian-and-british-malthusian-brainwashed-a-generation-of-americans/

    The creation of false opposites has been a long-standing obstacle to human progress.

    From the ancient pleasure-seeking Epicureans who argued against the logic-heavy Stoics of ancient Rome to the war of “salvation through faith vs works” that schismed western Christianity, to the chaotic emotional energy driving the Jacobin mobs of France whose passions were only matched by the radical Cartesian logic of their Girondin enemies; humanity has long been manipulated by oligarchs who knew how to set the species to war against itself. Although these operations have taken many forms, the desired effect has always been the same: divide-to-conquer bloodbaths which drowned out the saner voices of Cicero (executed in 44 BCE), Thomas More (executed in 1535 CE), or Jean Sylvain Bailly (executed in 1793 CE).

    Today’s polarization across the Trans-Atlantic world has reached a fevered pitch with the “right wing conservatives” shouting for liberty and less government while left wing liberals call for more government and top-down reforms of the system (with Great Reset technocrats laughing in the background).

    This article has some good points but as usual everything needs to be put into full context.

    Malthus is a whipping boy for the "infinite resources = infinite human freedom" lemmings.   Dismissing the fundamental aspects of
    the analysis made by Malthus is moronic.    Whether some regime wants to leverage for nefarious purposes the finite capacity of
    this planet to support humans has no rational link to the validity of the latter.    In some ways this sort of "thinking" is the same
    as the PC totalitarian BS about denying the differences between males and females to force "equality".    If you can't have equality
    without such tricks, then you are not even trying.   Believing that recognition of resource limits will result in oppression is the
    same sort of inanity.

    But the main point in this article is valid.   The left and right as structured in the west and really around the world is a false dichotomy
    based polarization.   Both limits are away from the reality-driven optimum.   Russia for the moment has figured this out and realizes
    that pure monetarism is the same BS as command economy dictatorship.   At the end of the day some sort of star chamber makes
    all the decisions while idiots fight over "ideals".   May as well have the elected government make these decisions instead of a
    shadow power with the government being the sock puppet.   Naturally, western propaganda has conditioned the sheeple to view
    this as bad.  Because private dictatorships are just so much better than government ones.   The fake western left will never attack
    the oligarchy and you can see how its PC idiocy is enabled by western corporations who pander to BLM and all the identity politics
    depravity.   The western left is their sock puppet like the western right.  



    This is a good article about what you are talking about: https:

    http://thedailyknell.wordpress.com/2012/03/11/old-rothschild-and-rockefeller-hands-controlled-the-libertarian-communist-dialectic/

    This is good reading here about the evil of libertarianism:

    https://realcurrencies.wordpress.com/2012/02/25/the-satanic-core-of-libertarianism/

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