I have a creeping suspicion that the only reason finance exploded after the 1970s was that it was a way of dealing overproduction and intensifying competition in manufacturing. Specifically finance is just here to pump up the money supply (you can think of money as just a 'claim' on goods and services; in this sense bank loans or credit in general is also a source of money creation), so that there's actually people out there to buy all the excess goods we have. For example, when the stock market goes up in value, it results in more money which is looking to be spent in the economy as some people cash out. In other words it's a deliberately unproductive industry or otherwise if more people worked in manufacturing there would be a crisis of under-consumption and intense competition. The reason why these asset bubbles haven't caused hyperinflation (e.g. when people cash in their million dollar house they effectively have one million lying around to spend on iPads etc.) is that there have actually been huge deflationary pressures thanks to globalisation and automation. In fact, if it weren't for all the people living off the fake money created by rising house or stock prices, we would probably have like $200 iPads or $2 milk per gallon. So really in the 1970s we could've solved the overproduction crisis by all deciding to work less and enjoy life more but because that would've been kryptonite to capitalist ideology they instead decided to create a deliberately unproductive class of rent-seekers to deal with the overproduction.
@mikerookie
3 жыл бұрын
hehe i literally just thought abt clippin and posting this clip upon listening to this part this morning and here it is upon opening this tube hehe. have a good day sir
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