Newsgroups: sci.econ From: jos boersema Subject: Re: Economics is a life or death science: take it serious, or die. References: <6rss0hF36gppU1@mid.individual.net> <6rvbp6F3cvfgU1@mid.individual.net> <6s2jfqF40rmaU1@mid.individual.net> Organization: www.socialism.nl Reply-To: jos boersema Followup-To: On 2009-01-01, Rod Speed wrote: > jos boersema wrote >> Rod Speed wrote >>> jos boersema wrote >>>> Rod Speed wrote >>>>> jos boersema wrote [...] >> For that reason business investment credit, especially >> the serious sums, must be nationalized and/or socialized. > > No thanks, thats central planning and that just plain doesnt work. Central planning means direct control over all companies and what they do. There is no free enterprise, companies don't decide on what they produce, what they buy, for how much they sell, whom they hire. The marxists made this mistake because they thought that not only was the free trade in money to blame: all free trade was to blame. My system is not central planning: my system is free enterprise, companies decide for themselves what they produce, what they buy, what their sale prices are going to be, whom they hire, when to quit and when to start. The only thing that is planned by Government in my system is investment finance, or at least that part of finance that hasn't been socialized by private non-profit organizations. You might want to note that we have enormously large banks these days, larger then Government investment groups would be in my system. These enormously large capitalist banks are effectively a dictatorial uncontrolled agency of Government who is only in it for itself, as if it where a company (companies should do that, investment funds should not do that like that). These enormously large private banks and investors also plan their investment activities. The only thing that is structurally changing is that the People will put their chosen officers above these investment funds, and tell these officers to proceed with investing, but now in the public interest, and not in the interest of the size of the investment fund. In return the public will fund the salary of these officers using taxation money. These officers will then proceed with an investment plan that will get them re-elected (ideally). All the rest stays free enterprise, the "real economy" is all free trade and free enterprise. In fact if the public says "hey officer, would you please invest a bit more in the medium to small businesses ?" then you would see a rise in the number of those. The for-profit funds tend to favor larger and larger workerslave farms, which ultimately ends where ? ... IN A PLAN ECONOMY !!! Capitalism degenerates automatically into the marxist plan economy. Look at the monstrous size of some companies, some apparently have a larger turn-over then entire countries. Inside these companies there is no free-trade, it is planned and all politics, and all dictatorial politics at that (because that's most profitable, keeps profit-share of the workerslaves lowest). Hence, if you are for free-enterprise and free markets, you have to be for *political free markets* being in control of business investment !