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John Moosie
climber
Beautiful California
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You have to be kidding me Lois. You agree with this crap?
They proved this by showing that if you drugged a Conservative so he wasn’t able to think, he’d come to the same conclusion as Liberals. So basically, if a Conservative can’t think, he ends up like a Liberal…
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corniss chopper
climber
breaking the speed of gravity
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John M - not crap but the truth. Can't your 'feel' it?
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John Moosie
climber
Beautiful California
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that if you drugged a Conservative
Lois, This is what you quoted.
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John Moosie
climber
Beautiful California
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Just because something has become overly powerful doesn't mean we should do away with it. Employees still need protection.
many think that Our military is overly powerful. should we do away with it?
....
John M - not crap but the truth. Can't your 'feel' it?
sure Corniss, just like Bush could "feel" that there were WMD in Iraq.
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JEleazarian
Trad climber
Fresno CA
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Good, if rather idscouraging, article, Silver. Fortunately for the United States, independent and centrist voters still decide most national elections. Unfortunately for California, partisan voters decide most California elections.
John
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Gary
climber
Desolation Row, Calif.
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We have to reduce the regulatory cost of hiring, and doing business, period. Corporate and payroll taxes must be more competitive, and while I don't advocate lowering pollution controls, I think we need to make some value judgements (personally I think we should tax gasoline a lot more to control pollution). The tort system must be overhauled, right now it is too much of a lottery system that is completely out of sync with real damages. Unions have to be tamed also, their cronyism with the Democrats has done as much damage as the Republican's cronyism with corporations. If you don't believe that go visit Detroit.
We tried that. Didn't work. Next.
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Elcapinyoazz
Social climber
Joshua Tree
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Union membership, as a percentage of the workforce, is at the lowest levels in our lifetimes. The "unions destroyed the economy" canard is completely ridiculous, based on asolutely nothing, and reveals those who parrot that line as uninformed, partisan shills.
The simple fact is, the avg worker's real inflation adjusted income is down since 1973, while the avg CEOs salary is about 4x higher than in that same period.
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Gary
climber
Desolation Row, Calif.
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Hey John,
Your terminology confuses me. How do you define capital? What do you consider the factors of production, and how would you compensate them?
I know you're confused. If you weren't, you wouldn't be a conservative.
:-)
Ok, those are the big questions, eh? Sometimes it makes my brain hurt.
Capital is money or a financial asset invested for the purpose of making more money
The factors of production? That depends on who you listen to. A capitalist apologist on another forum told me once that 'Labor + Land + Resources = Capital'. I asked him what the capitalist brought to the table in that formula and he never replied.
The main point, as noted by Abraham Lincoln, is that labor produces capital, capital does not produce labor.
In other words, the present day GOP talk about the rich making jobs is a load of hooey. It's jobs that make rich.
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Gary
climber
Desolation Row, Calif.
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Well part of the answer is because a whole lot of people have an entitlement mentality where they just sit around and expect to be provided for
Exactly right! And I'm tired of providing for a bunch of do-nothings. That's why I'm a socialist.
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Gary
climber
Desolation Row, Calif.
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This is drivel.
So is quite a bit of your reply.
Many companies employ thousands of people, but never make a profit. I am not sure what "obverse" means, but CEOs are workers also, and they are paid for the work they do. Your argument is also pervaded with the false notion that there is a fixed amount of capital, and one's gain is another's loss. This is usually dispelled in the first 5 minutes of Econ 101.
Who said capital is a fixed amount? It's created. CEOs are indeed workers. Yet their compensation does not seem to jive with their responsibilities. If the corporation is a success, they get filthy rich. If the corporation collapses, they get filthy rich. They say they are entitled to their enormous compensation because they are responsible for everything in the company. Yet every time one of them winds up in the court house or jail house, why they had no way of knowing what was going on in their company!
As far as being entitled to the fruit of your labor, there is no such guarantee under capitalism.
Yes, that's how capitalism works. Good point!
You might have better luck with Socialism (hint: I don't think you will!). Under capitalism, success is a tautology. The successful tend to accumulate the most capital. Why are they successful? Because they accumulate the most capital. Is it fair? Not always. Deal with it or move to Cuba where you can all share in the fruits of your labors (bananas, if you don't get shot picking one).
Here's the real drivel. How do they accumulate the capital? Through hard work? Working harder than anyone else? Is fraud and paper shuffling more creative than old fashioned hard work? If not, why is a greater value seemingly placed on fraud and paper shuffling nowadays?
Stop smoking the crack, man. It damages the brain. :-)
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JEleazarian
Trad climber
Fresno CA
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Gary,
Thanks for the response. Standard Capitalist economic theory (i.e. what I and most others teach in, say, a college entry-level survey course) names four factors of production: labor, capital, resources and entrepreneurial actions.
Labor consists of the direct work of people. Capital consists of investment required to sustain the enterprise before it receives any revenue. This can include both money and, for example, machinery, intellectual property, land, etc. (unless the enterprise treats land as a resource [see next definition]). Resources consist of materials consumed in the production of the final good or service. Entrepreneurial actions include both overall direction of the enterprise and taking the financial risk of the success or failure of the enterprise. Each factor of production deserves compensation. Indeed, unless an owner of any factor is working as a charity, each will require compensation for use of the resource in question.
To use a relatively simple example, consider my law office in the days when I was a sole practitioner. I would perform legal services, send a bill, and receive payment. I had to pay rent, utilities, and a secretary [for whom I paid employment taxes, worker's compensation insurance and health insurance]. I also needed computers, a printer, copier, fax machine, paper [In those days, lots of paper], telephone system, malpractice and general liability insurance, a law library [virtual in my case], etc., etc.
Before I got my first payment, I needed to pay for all of the equipment (capital) and the paper and other consumable supplies (resources). I also needed to pay my secretary, the rent, utilities, insurance, etc. I needed a source of money to make all those payments until I got paid. That source was part of the capital of the business.
Finally, I took the risk that what I got paid would exceed what I paid out each month. Regardless of what happened, I had to pay the rent, employee, etc. Some months I lost money; most I made money. That money was a return both for my labor, my capital, and my entrepreneurial actions.
I could have worked for another lawyer, but I would not have made as much money. The reason lawyers chose to work for other lawyers varies, but many did not want (or had not accumulated enough capital to afford) to take the risk that they may not make money in any particular month. This is not trivial. After spending years married to an entrepreneur (viz. me), my wife would rather make less money predictably and regularly than make more money, but at irregular intervals. Or so she says.
In addition, I couldn't start my own practice until I had saved enough, through earnings, gift and inheritance, to provide the capital needed to start the business. I could have started sooner if I "rented" that capital from someone else, but the interest required (i.e. the "rental rate" of money) would have cut into my profit, and added to my overhead, so i found it less risky to save first, then open. Since saving requires delayed gratification, and almost all of us prefer earlier gratification, the savers naturually expect to be paid for saving.
There were two laborers in that office -- my secretary and me. Neither of us were producting capital; we were only producing money. To produce capital, we would need to accumulate money, by spending less than what we earned for our labor. That constitutes an activity entirely apart from paid employment.
This is why I can't understand your argument. How does labor produce capital unless the laborer saves? In that case, is the labor producing capital, or is the act of saving producing capital?
Thanks for putting up with my rambling.
John
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CrackAddict
Trad climber
Canoga Park, CA
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Yes you're right, Henry Ford creating the middlee class has done irreparable damage to the repub party.
And Detroit can't compete for the same reason that no US business - the cost of health care. Health care reform is the #1 economic imperative. By far the most expensive component of any US-made car is the cost of the health care for the people who manufacture it - something like $5000 per car. That's the union's fault? In repub fantasy world, I suppose it is...
Ford paid employees the equivalent of $120K in today's wages, with absolutely no unions (or even taxes). This was 4X the prevailing wage of the day for unskilled labor. Wow, how could an evil capitalist do this?
In 2007 the average US autoworker got $75 in wages and benefits, compared to Japanese workers who got $40 (!!!). Health care costs were about $6 of this ($12,000 per year), but that is another thing Unions demand.
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CrackAddict
Trad climber
Canoga Park, CA
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Your solution? Vote repub, so CA can be a failed Red State too!
Can be?
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CrackAddict
Trad climber
Canoga Park, CA
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If not, why is a greater value seemingly placed on fraud and paper shuffling nowadays?
Because our government props up companies that do this fluff, not letting market forces bankrupt them.
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CrackAddict
Trad climber
Canoga Park, CA
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Union membership, as a percentage of the workforce, is at the lowest levels in our lifetimes. The "unions destroyed the economy" canard is completely ridiculous, based on asolutely nothing, and reveals those who parrot that line as uninformed, partisan shills.
Time for some more parroting since someone does not understand simple cause and effect relationships.
Of course Union membership is down - that is simply because the industries that Unions have moved into, have left the country and taken the jobs with them!! The only industry that still has firmly entrenched unions is Government - these jobs are harder to export (unfortunately!). Public employee unions BTW are the biggest shakedown in history. We, as taxpayers, actually pay higher taxes, so we can pay union dues for people who are paid more than market wages, with our higher taxes!! But I guess we need to protect them from the ruthless nature of the public sector workforce!! Really dangerous conditions teaching I am sure.
The simple fact is, the avg worker's real inflation adjusted income is down since 1973, while the avg CEOs salary is about 4x higher than in that same period.
Yes, because as I alluded to above, we have outsourced our manufacturing sector to countries that have no Unions. We have priced ourselves out of the market.
Your logic is just plain flawed. Let's say you are a Mom and Pop clothing store, and Walmart moves in. Nobody seems to want to buy from you because your prices are too high. Do you argue to raise prices, because given your current number of customers, you will make more profit?? Seems like a good idea, all things being equal. But all things are not equal. Your remaining customers will go to Walmart, you will go out of business, and you will spend the rest of your days trolling on Supertopo.
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CrackAddict
Trad climber
Canoga Park, CA
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TGT, your graph is very telling, and a very ill omen. Another indicator that we are going downhill fast is that DC has higher rents than Manhattan right now. Very, very bad.
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CrackAddict
Trad climber
Canoga Park, CA
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And in the example John gave, who would think the secretary is justified in feeling resentful that John might have made astronomically more than she did. Was she willing to go to law school? Was she willing to work and slave to build a business? Was she willing to be a grunt as an associate in a law firm and work 80 hours a week to save money to open a solo practice? Unless she IS willing to and has done all the things he has, she has no right resenting what her boss makes.
LEB, these are good points but it is far simpler than that even. Let's imagine that John never had to do any of that stuff. In fact, he got his job out of High School.
Here is what will happen - People will see what a great and high paying job it is, and apply for it. The vast number of applicants will allow the company to pay a suitable employee a lot less, until the wage for this job is closer to the secretary's.
That is what happens in a free market. If it doesn't happen, it is usually due to friction from some sort of Union or Government controls.
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Gary
climber
Desolation Row, Calif.
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John, you're not rambling.
This is why I can't understand your argument. How does labor produce capital unless the laborer saves? In that case, is the labor producing capital, or is the act of saving producing capital?
The laborer doesn't get to save. The excess he produces is appropriated. I think somebody called it accumulation by dispossession.
And I hope you are not equating small businesses, like yours, with the monopolistic trusts that exemplify capitalism.
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Gary
climber
Desolation Row, Calif.
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And in the example John gave, who would think the secretary is justified in feeling resentful that John might have made astronomically more than she did. Was she willing to go to law school? Was she willing to work and slave to build a business? Was she willing to be a grunt as an associate in a law firm and work 80 hours a week to save money to open a solo practice? Unless she IS willing to and has done all the things he has, she has no right resenting what her boss makes.
You are really confused on the subject, Lois. You think socialism means everyone gets the same thing. That's wrong. The apologists for the powers that be have been telling you that all your life. Maybe they have an agenda?
Go to the library. Read Norman Thomas and Michael Harrington. Thomas' books are well written, and easy to understand.
You have allowed, mostly because in this country you had no choice, the enemies of socialist thought to define it for you. That's no good.
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