One of the best explanations of the economic crisis i've seen
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one of the reasons I posted this is because this guy is the first economist I know of to actually tell the world that a major reason rates were unnaturally low for so long was because of the outsourcing of manufacturing to China. He gains much kudos from me for doing this because I thought I was the only one talking about this much overlooked yet very significant factor up until now.
Yep, thanks for posting.
I've rated David Harvey highly since my uni days. Hopefully the great animation also helps get his message across, he's someone who should be listened to and at least have his views considered in debate.
I've rated David Harvey highly since my uni days. Hopefully the great animation also helps get his message across, he's someone who should be listened to and at least have his views considered in debate.
"a new social order that would allow us to live within a system that really could be responsible, just, and humane?"
“Organizing for the Anti-Capitalist Transition“.
Sounds like dribble from a person who never left skool and is a self proclaimed expert in doing nothing.
One day he might leave school and participate in actually designing, creating and building something that may be of use to someone and improve their life.
In the meantime all he can do is dream up utopian idealisms for a world of which the workings he obviously does not understand.
Even Rupert Murdoc was a socialist when he was at skool.
“Organizing for the Anti-Capitalist Transition“.
Sounds like dribble from a person who never left skool and is a self proclaimed expert in doing nothing.
One day he might leave school and participate in actually designing, creating and building something that may be of use to someone and improve their life.
In the meantime all he can do is dream up utopian idealisms for a world of which the workings he obviously does not understand.
Even Rupert Murdoc was a socialist when he was at skool.
whose rates were unnaturally low for so long? and when?
Some truth in what he says, but also some spurious assumptions.
Why is capitalism to blame for excess credit, when citizens outsource to governments regulation of financial innovation? Harvey's solution to fix a problem created by government is to give gov't more responsibility.
Harvey also doesn't appreciate the system checks of capital accumulation. One cannot borrow capital to grow a business unless one can convince others they can pay it back.
Any other system is more likely to misallocate capital, because of commercial naivety (Labor's insulation and BER programs). Consider the millions of empty commercial and residential property m2 in China.
I'll stick with the view that the wheels fall off when credit expands without an equal expansion in productivity. For that to happen, the additional credit must be foreign sourced, as too the additional goods and services consumed. And that is not a problem with Capitalism, but human greed, slovenliness, and ignorance.
I'll also stick with the view that govts are more likely to abuse credit, misallocating future tax revenue to projects that do not increase productivity. Obama's medicare expansion is a classic example (as were any number of Rudd's initiatives). Expanding free health care for a population that, of its own volition, makes poor lifestyle choices, will not increase productivity.
Harvey argues wages have been repressed as a % of national income....that we as an OECD member, have had wage repression since the 70s.........I'd like to see the figures supporting that.
How could house prices grow at a greater rate than gni if household income grows at a lower rate than gni? The only scenario I can think of is when rate of population and/or credit growth is faster than gni growth. So why isn't Harvey blaming population and credit growth for impoverishing the proletariat?
Anyway, there's nothing inherently wrong with wages repesenting a smaller % of gni. You'd expect this as an economy matures and becomes wealthier. Higher levels of capital would be used to earn income from less domestic labor intensive sources, and more from intellectually intensive sources like automation, technological advancement, foreign investment, patents, copyrights, and exports. Higher income is expected from intellectual labor relative to manual labor. Germany and Switzerland have been doing this for decades. How higher income is distributed is dependent on the % of the population that skill up. That Australia has to import skilled labor is indication many Australians don't value skilling up.
Harvey is in effect arguing GNI should always be shared equitably between citizens, via their sharing of some optimal % of economic growth. In his Utopia, there'd be no pressure on people to study at school or university or work hard, because they'd always be guaranteed a share of the common wealth.
How could house prices grow at a greater rate than gni if household income grows at a lower rate than gni? The only scenario I can think of is when rate of population and/or credit growth is faster than gni growth. So why isn't Harvey blaming population and credit growth for impoverishing the proletariat?
Anyway, there's nothing inherently wrong with wages repesenting a smaller % of gni. You'd expect this as an economy matures and becomes wealthier. Higher levels of capital would be used to earn income from less domestic labor intensive sources, and more from intellectually intensive sources like automation, technological advancement, foreign investment, patents, copyrights, and exports. Higher income is expected from intellectual labor relative to manual labor. Germany and Switzerland have been doing this for decades. How higher income is distributed is dependent on the % of the population that skill up. That Australia has to import skilled labor is indication many Australians don't value skilling up.
Harvey is in effect arguing GNI should always be shared equitably between citizens, via their sharing of some optimal % of economic growth. In his Utopia, there'd be no pressure on people to study at school or university or work hard, because they'd always be guaranteed a share of the common wealth.
Thats great,
I also loved the first of these I saw, "How stuff works"
http://www.youtube.com/watch?v=gLBE5QAYXp8&feature=fvw
I also loved the first of these I saw, "How stuff works"
http://www.youtube.com/watch?v=gLBE5QAYXp8&feature=fvw
Exactly.
When we lived in the USA ( I keep bringing this Country up because we saw it close up and it is probably the benchmark for the western world lifetyle
)What I observed was an enormous representation in their population of what I loosely term "penguins". The majority of the population.
These are yer average folk living normal lives, following the crowd, listening to any popular opinion, following any trend, being led about by advertising and Gubbmint rhetoric/proaganda, consuming into oblivion. They are living the life of least resistence; less effort in all aspects of living.
Not that this or consuming is wrong; we all do it, but the majority doesn't have the balance, hence they are mostly broke - lots of credit cards, little savings/investments - mutual funds forced upon them out of their ignorance notwithstanding. These are not an investment; it's merely a savings fund for those who want to invest but can't be bothered doing the harder yards. Exercise is hard; dieting is hard; cooking takes time and so on - so they don't do it. Sorry; a leisurely stroll around the block with the dog is kidding yourself.
Their lifestyle decisions are also out of balance and mostly destructive over there (and here); the majority already have blindly succumbed to the habit of listening to fast-food giant's advertising, and live their lives eating only the takeaway diet, the soft drink. Smoking and drugs (despite all the readily available info warning of the dangers
).Their lives are sedentry; computer games, Nintendo, XBox, WII. They drive 2 blocks to the milkbar for milk - you know the story. Again; this is not all, but most. Their kids will mostly follow the patterns of their parents.
To further qualify these statements, some of you might know that my wife is a theatre nurse of some 15 years, and I also worked as a nurse assistant in a public hospital ICU for 3 years. Between us, and all our health care industry friends, we see the really sick folk. The end result of a life of no balance. Except for the trauma victims, the majority were/are self inflicted bad health recipients - obesity related issues, smoking issues, heart attack - diet issues and so on. Amazingly, many of them and their relatives/friends are flabbergasted as to how they could end up with suck bad luck to be in the ICU. It's just not fair
Now, give these people free health care, and you let them off the hook of responsibility for their own actions even more. You now have a reason not to bother being healthy; the cycle continues and grows. And if you can further improve the situation by freely suing a doctor who makes a mistake....woohooo!
The biggest cause of bankruptcy in the USA is medical bills, and their health care costs are ridiculous (due to malpractice insurance premiums). And don't fool yourself to believe that it won't happen here. We already have many obstetricians closing their doors due to malpractice insurance costs. One guy we know here in Aus who is still practicing has a $1k per day premium. The ones left will simply pass on that cost to us. Our health insurance will adjust to cover it - at a higher premium and less cover. See a pattern?
After having said all this, I actually support free health care for the masses.
They have it in France, and this is a relatively healthy Country. But the difference there is attitude; most of their population have a pride in appearance, a pride in their culinary history. They eat better and look after themselves better.
For some reason Aussies and Yanks don't seem to care about their appearance, the cost of living on junk food, and ultimately their health. We now have 2/3 of our adult population overweight.
So, the answer is not in free healthcare; it's in our education and attitude - taight at the primary school level (and younger) by the parents and teachers. The Gubbmint could also help - instead of shelling out heaps for grants to lame lefty projects to study the mating habits of the common sparrow or whatever.
End of rant; off to Maccas for brekky
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I'm not a leftie either Marc - and so that is exactly how I see the world as well. Nice post.
I'm willing to help anyone, as long as they are prepared to grind it out and do the hard yards themselves. If they scratch and crawl and get to the 99 yard line and stumble, I'm happy to reach out and help them that last little bit. When I'm in that situation, I'd expect a hand as well, and I've got enough faith in humanity that a hand would be there for me.
What I won't do is help someone standing at the starting line, not prepared to grind it out, with a surly attitude, hands on hips, stomping their feet and DEMANDING that I help them, whinging and moaning that it is all too hard, and can I carry them the full 100 yards.
I'm willing to help anyone, as long as they are prepared to grind it out and do the hard yards themselves. If they scratch and crawl and get to the 99 yard line and stumble, I'm happy to reach out and help them that last little bit. When I'm in that situation, I'd expect a hand as well, and I've got enough faith in humanity that a hand would be there for me.
What I won't do is help someone standing at the starting line, not prepared to grind it out, with a surly attitude, hands on hips, stomping their feet and DEMANDING that I help them, whinging and moaning that it is all too hard, and can I carry them the full 100 yards.
Well said Marc.
Softly, softly, passive expectations of instant everything and super-sized entitlements is the media and datasphere pandering to the victim mentality of those who demand much for no (or little) effort.
Examples all around as you've highlighted above.
For those who want to read a book that's (quite in your face) about this stuff, I highly recommend "Why You're Dumb, Sick and Broke" by Randy Gage.
I wonder what the exact numbers are of the entitlement mindset cohort. Let's assume Pareto's 80/20 law and consider that 80 % of folk have some or all of the attributes that keep them bound to mediocrity, expecting everything without effort. They remain "stuck" working in a job they largely don't like yet never going the extra mile they work only as much as necessary to not get fired whilst the emplyer pays them just enough so they won't leave.
Our school system is geared to create just such "good employee" drones who don't question enough so the societal system can operate without too much disruption and avoid anarchy.
Softly, softly, passive expectations of instant everything and super-sized entitlements is the media and datasphere pandering to the victim mentality of those who demand much for no (or little) effort.
Examples all around as you've highlighted above.
For those who want to read a book that's (quite in your face) about this stuff, I highly recommend "Why You're Dumb, Sick and Broke" by Randy Gage.
I wonder what the exact numbers are of the entitlement mindset cohort. Let's assume Pareto's 80/20 law and consider that 80 % of folk have some or all of the attributes that keep them bound to mediocrity, expecting everything without effort. They remain "stuck" working in a job they largely don't like yet never going the extra mile they work only as much as necessary to not get fired whilst the emplyer pays them just enough so they won't leave.
Our school system is geared to create just such "good employee" drones who don't question enough so the societal system can operate without too much disruption and avoid anarchy.
Well said Mark.
One of the reasons I am on the right politically is because it keeps the onus of responsibility for survival and happiness on ourselves.
The more you expect the gubmint to provide, the more you weaken your mind and even worse, your will.
A weak will is the surest way to limitation and unhappiness imho, and it seems there's a virus causing an epidemic.
One of the reasons I am on the right politically is because it keeps the onus of responsibility for survival and happiness on ourselves.
The more you expect the gubmint to provide, the more you weaken your mind and even worse, your will.
A weak will is the surest way to limitation and unhappiness imho, and it seems there's a virus causing an epidemic.
Top marx, the guy deserves an 'E' for effort.
Who'd have thought to replace a system which is flawed with a system which has failed.
so (and scaringly) true.
i am constantly stunned at how many people there are waddling around overweight eating sweets or cakes or grease covered fried something. they constantly seem to outnumber those of a healthy size. i am also stunned at what some people (especially those overweight) wear in public.
i think part of the problem is politcally correct acceptance of those that are obese ... call me intolerant, but i veer towards the french vision of what is acceptable - in self pride and appearance.
maybe it's just me. i am an intolerant cynic. but i cannot fathom how anyone can allow themselves to get into such a gross shape.
don't get me wrong. i occasionally eat fried, sweet, takeaway but balance it with fruit and veges and exercise.
the average french woman eat everything - in moderation - and they don't exercise as such, but believe in movement, stair instead of elevator, walk to the shops instead of drive, gym-workout s*x instead of gym workout.
Sometimes when I do not know the meaning of a word I highlight it and use the dictionary lookup option, however I could find no meaning for 'Gubbmint'.
Then I read WW's post and the penny dropped.
Perhaps there's been too much weakening of my mind.
I often come across those types who "live off the Gubbmint" so to speak, and it is quite a common occurance that they have an attitude of smugness or something, which goes something like; "Ha! I've beaten the system; I'm being a bludger/sponger and they can't touch me; I'm getting away with it - look how smart I am."
Words not said by them - just implied.
But then I take a step back and look at just exactly what their life consists of - the standard of it and what they can afford, what they can (not) do.
I often come across those types who "live off the Gubbmint" so to speak, and it is quite a common occurance that they have an attitude of smugness or something, which goes something like; "Ha! I've beaten the system; I'm being a bludger/sponger and they can't touch me; I'm getting away with it - look how smart I am."
Words not said by them - just implied.
But then I take a step back and look at just exactly what their life consists of - the standard of it and what they can afford, what they can (not) do.
i think the success or otherwise depends very much on the family and the nationality. The 'system' has been very much tightened over the last 15 years.
When i was a teenager growing up, it really was a great way to rort the system if the alternative was just an 'average income'. I did an analysis back when i was in year 12 and i calculated that i could make a family of four with a single 'official' income of less than $70000 better off if the whole family just went on benefits (including the kids which would qualify for austudy). Now remember that $70,000 was back in what 1990 dollars or thereabouts.
My parents said forget it we have our pride, but a number of my ethnic school friends were benefiting from the system (with them receiving aus study, yet the parents having enough money to buy each child a car when they graduated) and me working side jobs for about $4 an hour
Taught me a very good lesson early on in life, if you cant change the system just make the system work for you. If enough people do this, the system 'breaks down' and it becomes fairer for everyone.
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