Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.


For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017

Innovation — Unemployment — Business Cycle



Posts : 17765
Thanked : 876
Join date : 2013-01-12

Innovation — Unemployment — Business Cycle

Post by Lobo on Wed 08 Jun 2016, 7:00 pm

Innovation — Unemployment — Business Cycle

Hi Martin,

Thank you for everything that you do.

Comments have been made – to which you yourself have been alluding to for some time – that technology is replacing jobs at such a rapid rate, unemployment will be a major issue in the very near future. However, these commentators conclude that this proves that capitalism has failed.

Obviously, since capitalism has been interfered with for decades, it can’t have failed since it has not been allowed to be practiced unfettered.

My question is, if we were living in a capitalist system without intervention, how would the system correct itself? What I mean is since corporate profits depend upon consumption, and consumption depends upon wages from the masses, then how would capitalism prevent very high unemployment? (This goes back to your example of Henry Ford providing higher wages to his employees, so they could buy the cars he was producing.)

Thank you in advance for any insight you can provide on this very critical issue.

Video Player

ANSWER: People who claim that capitalism has failed are seriously burdened with propaganda. Capitalism is freedom, and socialism is effectively the lack of freedom. True, we have done nothing but interfere with the economy since the theories of Marx and Keynes were adopted. Yet, Paul Volcker admitted that this “New Economics” has failed. This whole theory was based on the idea that government could manipulate society to produce utopia, but they have never been able to achieve that. Larry Summers has admitted that publicly, but the socialists do not listen because they want to rob their neighbors.

Innovation comes in waves and technological advancements always displace jobs. The problem has been that people do not improve their worth, yet they demand pay hikes just because they want more money. If you go to Miami, the number one language is Spanish. They want to raise the minimum wage to $15 instead of encouraging people to learn English to broaden their worth. Anyone who has computer skills starts at $15+. So why should people without employable skills earn the same as a person with technology skills?

I had a friend who was a pilot during the Korean War. He told me that many of the old pilots could not make the transition when the new jets came in because they were unable to respond as quickly to the increased speed. Every field moves through the same advancement curve. Unions attempt to freeze skills by demanding more money rather than teaching people to adapt and move with the cycle.

The system will always correct itself as it has done throughout history, long before Marx/Keynes. It is always subject to the business cycle, which is influenced by many factors including weather. Capitalism began with the Black Death. Before then, it was a highly socialistic world or serfs. You worked the land and kept 20% of the food in return for a house to live in, and you could run into the castle when danger came. The Black Death killed about 50% of the workforce and the scarcity of labor resulted in landlords being willing to pay wages. The shortage of labor gave birth to capitalism. So, there will always be cycles to the economy.

Romans invented corporations. They bought and sold shares in the marketplace, and that freedom of capital created Rome (not centralized planning). The system has always been self-correcting. Technology will advance, which will displace jobs and cause unemployment to rise. In turn, corporate profits will be brought down and war will typically emerge to thin the herd. Eventually, the next generation becomes better equipped to ride the next wave of innovation.

    Current date/time is Sat 03 Dec 2016, 3:46 pm