Message from @Deleted User
Discord ID: 800213838053376021
Personally I have come to believe that interest – or, rather, too high a rate of interest – is the ‘villain of the piece’ in a more far-reaching sense than appears from the above. But to justify this belief would lead me into a longer story than would be appropriate in this place.
Keynes, ‘Saving and Usury’, 1932
well having too high an interest rate is obviously bad but I don't think you can have an economy without interest due to the time value of money
you mean time preference?
you can have time preference without interest
most people care about the expected return on capital (basically the profit businesses make)
not return on savings
well its an implication of time preference, but specifically the time value of money
Fuck Free Tradeeeeee
whats it say
Competitive advantage works up to a point but it doesn't scale to infinity like some people would like you to think
It doesn't work at all really
tl;dr wrong because full employment assumption, industry stripping, etc
@slavecaste What is the concept of "free trade" exactly?
The fact that we can trade globally without any tariffs and it'd be all good
So what is the problem with it?
Yes it does
In principle it works, specialisation and labour division increases efficiency
If there was no cost to transport or sell/buy goods (ie no tax, costs to enter market ect.) Then it would be fine
The reason it doesn't work is because of geopolitical concerns and unfactored costs
You can have that without free trade
There are way more reasons that it won't work that aren't even that
Because it doesn't work how theorized (wages fall, industries disappear, unemployment rises, etc)
Competitive advantage had nothing to do with free trade, I do not agree with the author combining the two. Unemployment may rise in the short term but will fall in the long term
And industries dissapering is not it "not working"
You would expect industries to dissaper
It only falls due to government stimulus, not free trade
That is not how it is theorized.
Yes it did? What? LOL
Inefficient industries wither away leaving only what is nessicary
Its an argument in favour of free trade but the concept is still sound without free trade
But the industries that do wither away are efficient, not inefficient.
No. Take coal in the UK for example
Shit you're right
The concept is retarded even without free trade and to use it as a defense for free trade is shitbrain.
I disagree with Thatcher's methods but the coal mines were inefficient and the workers were holding the government hostage