The system incentivizes debt in general, but it incentivizes it much more for companies. Considering accounting and tax reasons, it makes no sense to NOT take a loan, the only problem is, the company and the market have to be stable for the duration of the loan. If markets change dramatically and the company is unable to pay back, it defaults but if all goes well, it can grow very rapidly. Consumers do not share the same accounting/tax benefits as the companies, but are incentivized to take loans anyway, simply because this creates money for the banks out of thin air.
yeah if you can get a low interest loan, where the interest is lower than the ACTUAL inflation rate, it makes sense to take on debt. Corporate debt is also a problem (because of its size these days) but corporations generally take on debt in a more calculated way vs an average retail consumer.
I don't buy a lot of stuff but I have a problem with how things don't last. Everything is cheaply made and it's irritating when I wasn't planning on spending money so often and because I'm on a budget.
Thats true, for example manufacturers are motivated to sell pens designed for "single-use" rather than durable ones that could last a lifetime. Some office supply companies have even been caught replacing metal parts inside a stapler with plastic ones intentionally engineered the new model to break after a certain number of uses. The only solution is to pay more upfront for higher quality and buy fewer items.
Also, I used to be a make-up consumer. I had so much makeup, it took up my whole bathroom. Now I just have a little basket!!! I spent more money ey towards my garden last year
Look into Keynesian economics. Look into quantitative easing. Once you understand those, you'll realise that you've been blaming free market capitalism when it's actually dead since 1913. Actual free market capitalism is the best system, for the vast majority of people, that's why we don't have it, because the world isn't ruled by the vast majority of people... The solution for all our issues could be fixed in a matter of months: 1/ lower taxes, BY A LOT 2/ fire most of government employees which are almost all doing nothing 3/ make opening a company an online 2-click affair 4/ send a few politicians in prison for the crimes they committed, it should send a message that we're back in control 5/ neuter central banks 6/ legalize cannabis everywhere That's literally all it would take. People paying less taxes and being able to open a company easily means that most people have a company, most other people have money to spend on those companies, the velocity of money (which is at all times low btw) will go to the moon in no time. Even though people will pay less taxes, the high money velocity coupled with low government spending means that we'll end up with a surplus. It really is THAT easy. Failing that, the least we can do is not blame free market capitalism. Blame crony capitalism, but not free market capitalism. Because how can you destroy something most people haven't even identified!
I might do an episode on Austrian vs Keynesian economics and Late Stage Capitalism. This video was more focused on the insatiable mindset of a consumer. You make a lot of good points though.
You certainly make some interesting points, but this whole "crony-capitalism is the real problem" thing really just seems like the pro-capitalism version of "the USSR wasn't real communism!" I mean, why did the crony system not come into existence if not for free market capitalism in the first place, similar to how the workers soviets in the USSR led to the rise of authoritarian communism? In the end, free markets will always have some businesses do far better than others, so they'll have more capital - political and monetary, to just rebuild the corporatist system we see today. How would such a free market system, as you propose, limit such things? I mean yeah, you can have harsh punishments for those who engage in corruption but those who will engage in that corruption will also be those who write the laws in the first place making it nigh impossible to keep them in line as you say. I also find it difficult to imagine most people owning a business. Most people didn't own a business pre 1913, why would it be any different today? True you can make it easier to found a business but any business owner of course will tell you that running it is the hard part, not setting it up, even if there's a heap of red-tape removed I doubt too many more people will want to take on the risk of founding businesses than already do. I do certainly agree that the 6 points you listed should be done, though, and I would like to hear your response, thank you.
@@FPSIreland2 I agree that it does sound like "not true communism, bro" but I do make a distinction between the capitalism we could have versus the one we have, which is clearly being exploited against us. To answer your question, the answer is that a truly free market will regulate itself. Let's admit that Amazon has a monopoly on X item, and pays their employee the minimum wage to make them, because of the minimum wage, literally no one could compete, Amazon will be the best forever. But what if you remove the minimum wage? A small company will make them for cheaper. The next step is that Amazon will inevitably try to compensate, however if they lower the wages, they have literally millions of workers unhappy. The core of all our issue is the government trying to regulate things. Each and every one of their attempts backfires. Anti-trust laws literally made modern monopolies when its entire premise was to prevent that. "free health care" in France means that 20 pills of paracetamol cost 9€, where the same cost £0.32 in England... Can you imagine the ramification? Literally every time a French person takes any kind of medication, the system gives hundreds of % profit to big pharma from tax payer money... Arguably, way more people than you'd expect are willing to open a company. You just have to see how many content creators there are out there. Most aren't going anywhere, but their plan is to actually make a business basically. Ultimately, my answer was flawed because I tried to be concise. The real answer should look more like: "reduce the size of the government, its power, things will improve hundreds-fold" (and then explain each point... But by that point I wrote a book... And because I wrote it, it's probably sh!t lol)
This channel is a gem
Thanks!
The beauty is that you can refuse to fall for it.
But that would require self-discipline.
The system incentivizes debt in general, but it incentivizes it much more for companies. Considering accounting and tax reasons, it makes no sense to NOT take a loan, the only problem is, the company and the market have to be stable for the duration of the loan. If markets change dramatically and the company is unable to pay back, it defaults but if all goes well, it can grow very rapidly. Consumers do not share the same accounting/tax benefits as the companies, but are incentivized to take loans anyway, simply because this creates money for the banks out of thin air.
yeah if you can get a low interest loan, where the interest is lower than the ACTUAL inflation rate, it makes sense to take on debt. Corporate debt is also a problem (because of its size these days) but corporations generally take on debt in a more calculated way vs an average retail consumer.
I don't buy a lot of stuff but I have a problem with how things don't last. Everything is cheaply made and it's irritating when I wasn't planning on spending money so often and because I'm on a budget.
Thats true, for example manufacturers are motivated to sell pens designed for "single-use" rather than durable ones that could last a lifetime.
Some office supply companies have even been caught replacing metal parts inside a stapler with plastic ones intentionally engineered the new model to break after a certain number of uses.
The only solution is to pay more upfront for higher quality and buy fewer items.
Duh Temu "Shop like a Billionare". J/k I love shopping, and I'm in debt. Credit card hell
Also, I used to be a make-up consumer. I had so much makeup, it took up my whole bathroom. Now I just have a little basket!!! I spent more money ey towards my garden last year
Thanks for sharing!!
If you are down to CONSUME more content like this, hit me with a LIKE and SUBSCRIBE
(it's free)
🔒💰
Look into Keynesian economics. Look into quantitative easing. Once you understand those, you'll realise that you've been blaming free market capitalism when it's actually dead since 1913.
Actual free market capitalism is the best system, for the vast majority of people, that's why we don't have it, because the world isn't ruled by the vast majority of people...
The solution for all our issues could be fixed in a matter of months:
1/ lower taxes, BY A LOT
2/ fire most of government employees which are almost all doing nothing
3/ make opening a company an online 2-click affair
4/ send a few politicians in prison for the crimes they committed, it should send a message that we're back in control
5/ neuter central banks
6/ legalize cannabis everywhere
That's literally all it would take. People paying less taxes and being able to open a company easily means that most people have a company, most other people have money to spend on those companies, the velocity of money (which is at all times low btw) will go to the moon in no time. Even though people will pay less taxes, the high money velocity coupled with low government spending means that we'll end up with a surplus.
It really is THAT easy. Failing that, the least we can do is not blame free market capitalism. Blame crony capitalism, but not free market capitalism. Because how can you destroy something most people haven't even identified!
I might do an episode on Austrian vs Keynesian economics and Late Stage Capitalism. This video was more focused on the insatiable mindset of a consumer. You make a lot of good points though.
You certainly make some interesting points, but this whole "crony-capitalism is the real problem" thing really just seems like the pro-capitalism version of "the USSR wasn't real communism!" I mean, why did the crony system not come into existence if not for free market capitalism in the first place, similar to how the workers soviets in the USSR led to the rise of authoritarian communism? In the end, free markets will always have some businesses do far better than others, so they'll have more capital - political and monetary, to just rebuild the corporatist system we see today. How would such a free market system, as you propose, limit such things? I mean yeah, you can have harsh punishments for those who engage in corruption but those who will engage in that corruption will also be those who write the laws in the first place making it nigh impossible to keep them in line as you say. I also find it difficult to imagine most people owning a business. Most people didn't own a business pre 1913, why would it be any different today? True you can make it easier to found a business but any business owner of course will tell you that running it is the hard part, not setting it up, even if there's a heap of red-tape removed I doubt too many more people will want to take on the risk of founding businesses than already do.
I do certainly agree that the 6 points you listed should be done, though, and I would like to hear your response, thank you.
@@FPSIreland2 I agree that it does sound like "not true communism, bro" but I do make a distinction between the capitalism we could have versus the one we have, which is clearly being exploited against us.
To answer your question, the answer is that a truly free market will regulate itself.
Let's admit that Amazon has a monopoly on X item, and pays their employee the minimum wage to make them, because of the minimum wage, literally no one could compete, Amazon will be the best forever.
But what if you remove the minimum wage? A small company will make them for cheaper.
The next step is that Amazon will inevitably try to compensate, however if they lower the wages, they have literally millions of workers unhappy.
The core of all our issue is the government trying to regulate things. Each and every one of their attempts backfires. Anti-trust laws literally made modern monopolies when its entire premise was to prevent that.
"free health care" in France means that 20 pills of paracetamol cost 9€, where the same cost £0.32 in England... Can you imagine the ramification? Literally every time a French person takes any kind of medication, the system gives hundreds of % profit to big pharma from tax payer money...
Arguably, way more people than you'd expect are willing to open a company. You just have to see how many content creators there are out there. Most aren't going anywhere, but their plan is to actually make a business basically.
Ultimately, my answer was flawed because I tried to be concise. The real answer should look more like: "reduce the size of the government, its power, things will improve hundreds-fold" (and then explain each point... But by that point I wrote a book... And because I wrote it, it's probably sh!t lol)
Laughable