General > General Technical Chat
I have the feeling that the whole trade war starts from a pile of nonsense.
<< < (71/145) > >>
apis:

--- Quote from: NorthGuy on June 02, 2019, 07:27:48 pm ---You can eat only so much bread. If the economy can produce more bread than is needed (even by a little), then the bread price will go down because of the competition between bread-makers. So, the money is going to accumulate. Everyone will have lots of money and will think they're rich. This can go on indefinitely until the capacity to produce bread falls below the demand levels. At that point, the inflation turns on, and everyone quickly recognizes that they're still poor :)

--- End quote ---
Assuming there is more than one bread-maker ::) (it might seem like there are many bread-makers but they can be owned by the same parent company). If there is enough competition between bread-makers the prices will begin to reflect the actual value of the bread, i.e. the production cost, and the profit of the company should approach zero. That is the infamous "invisible hand" if I'm not mistaken. It seems weird that companies keep making huge profits if we have free markets with perfect competition.
apis:

--- Quote from: Simon on June 02, 2019, 07:30:53 pm ---I don't know the figures but yes the divideis widening with company bosses earning 1000's of times their everyday employees. But the standard of living masks the problem of the widening gap. And the worlds rich fly to davos in private jets to discuss the issues of our time like poverty, oh the irony.

--- End quote ---
That's not even where the majority of the money goes, it goes to the owners I believe, and paying 1000's of times an ordinary salary to the bosses is peanuts compared to company profits. Paying the bosses a lot makes sure they stay loyal to the company though. It's sometimes said it's because they have more responsibility but I find that ridiculous, in that case a school-buss driver should be a billionaire since he is responsible for hundreds of children's lives every day!
NorthGuy:

--- Quote from: apis on June 02, 2019, 07:43:17 pm ---Assuming there is more than one bread-maker ::) (it might seem like there are many bread-makers but they can be owned by the same parent company). If there is enough competition between bread-makers the prices will begin to reflect the actual value of the bread, i.e. the production cost, and the profit of the company should approach zero.

--- End quote ---

Actually can go even lower if some of the bread is imported from a foreign country at much lower prices. In such situation, domestic bread-makers will have hard time staying in business, some even may go out of business completely. This, of course, will diminish domestic capacity to produce bread. But this will not make bread prices any higher because of the cheap foreign supplies.
Simon:
Yes the responsability is bullshit. When our bankers messed up they did not even get the sack. But why would they not be loyal? not by chance because another company gives nthen the chance to have their name printed a bit higher in the list of most well paid?
apis:

--- Quote from: Simon on June 02, 2019, 08:03:14 pm ---Yes the responsability is bullshit. When our bankers messed up they did not even get the sack. But why would they not be loyal? not by chance because another company gives nthen the chance to have their name printed a bit higher in the list of most well paid?

--- End quote ---
They will only get a new job at another company if they did a good job at the previous. I.e. if they don't make the owners happy they have a lot to loose, so they better do what is expected of them and make sure the money keep rolling into the company vaults.
Navigation
Message Index
Next page
Previous page
There was an error while thanking
Thanking...

Go to full version
Powered by SMFPacks Advanced Attachments Uploader Mod