#0: Gordon Long – Markets in Delusional Phase

Gordon Long – Markets in Delusional Phase

 
You have consistently said that capitalism is money earning money without work and yet Gordon Long says that capitalism is where companies invest their savings, called profits, into productive assets which in turn create savings or profits that are reinvested into assets, etc. This enables capitalism to work for the betterment of us all. What have you got against this?   Marvin in Utah.

Gordon Long is simply equating capitalism with free enterprise. Since we are about eliminating confusion not aiding it, we draw a REAL distinction between the two. Mr. Long has made enough money to not have to work anymore; he doesn't add anything more to the economy through work; spending time away from the rest of his life for which he is paid, wherein one performs some productive service. Mr. Long does spend time managing his money, but we do not accept that as honest work, sorry! He is a capitalist in that he fulfills our definition of being one; someone rich enough to makes money on money without productive work. Also notice that Long indicated that productive assets were to enhance or improve productivity. Whose productivity? The productivity of all the human factors in any business. But what are the limits to productivity? The market supposedly determines this; if you produce more of something than a market can absorb, you may have excessive inventories that depreciate rapidly, especially if the goods are perishable. If they are not, they nevertheless may depreciate. Depreciation of inventories is often figured against taxes. Since what Long describes as capitalism is really free enterprise, we support the growth of free enterprise which must of course always be private, so let's make that private enterprise. As far as his analysis of the present system goes; THEIR system that we have all stupidly just allowed to assume authorities that it doesn't even deserve, our folly, his analysis is correct. This is just another reason why we need our own money, even people such as Gordon Long will need his own money. Be seeing you.