tag:blogger.com,1999:blog-8515247115132134144.post4783380730166638933..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: Wages, Credit, and GDPStagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8515247115132134144.post-63640162551853624042012-02-18T16:55:00.620-08:002012-02-18T16:55:00.620-08:00Oops. I worded that poorly. Should have double-che...Oops. I worded that poorly. Should have double-checked it. You get the idea though.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-59756516429172779612012-02-18T16:54:09.023-08:002012-02-18T16:54:09.023-08:00Troy,
I try to bang this drum other places, but i...Troy,<br /><br /><i>I try to bang this drum other places, but it's like talking to a wall...</i><br /><br />From the first review of within your link:<br /><br /><i>As Keen writes of his peers,<br /><br />...<br /><br />"As anyone who has tried to banter with an advocate of some esoteric religion knows, there is no point in trying to debate fundamental beliefs with a zealot."</i>Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-59474166529377779712012-02-17T20:08:22.351-08:002012-02-17T20:08:22.351-08:00wages are therefore what ultimately matter.
Of co...<i> wages are therefore what ultimately matter.</i><br /><br />Of course, since rents are parasitical on wages.<br /><br />It all gets down to actual wealth creation -- to create wealth requires labor, though automation is increasing the multiplier here, and the days where machines design, build, and repair other machines is not too far off. Maybe this century if we're "lucky", LOL.Troynoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-64790560232394837852012-02-17T19:49:40.500-08:002012-02-17T19:49:40.500-08:00Somebody at Angry Bear turned me onto:
http://www...Somebody at Angry Bear turned me onto:<br /><br /><a href="http://www.amazon.com/Debunking-Economics-Revised-Expanded-Dethroned/dp/1848139926" rel="nofollow">http://www.amazon.com/Debunking-Economics-Revised-Expanded-Dethroned/dp/1848139926</a><br /><br />and I'm about 2/3rds through it, and his thesis is all about how spending = income + debt take-on, and how modern economics is simply blind to this.<br /><br />I try to bang this drum <a href="http://www.themoneyillusion.com/?p=13117#comment-135838" rel="nofollow">other places</a>, but it's like talking to a wall .. .Troynoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-84900417756603478212012-02-17T19:24:58.916-08:002012-02-17T19:24:58.916-08:00Some might argue that I should factor in dividends...Some might argue that I should factor in dividends (and rental income). I don't think I should.<br /><br />If wages go to zero then dividends and rental income definitely go to zero.<br /><br />The same is not true in reverse.<br /><br />If dividends and rental income go to zero then wages won't go to zero. Someone, somewhere will still get paid something even in a profitless world. Companies tend not to fold until they actually lose money.<br /><br />How could rental income go to zero? Easy. As a landlord, bring in $1000 a month in rental income but spend it all on maintenance and property taxes. You'll net zero if the house doesn't appreciate.<br /><br />In my opinion, wages are therefore what ultimately matter.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.com