by gg3 » Mon 01 Jan 2007, 03:50:50
Welcome aboard dude, and I agree with Gideon, "not good with my hands" is Koala Poo. Don't let anyone talk you out of doing everything you can to develop your abilities. If you're interested in swordsmanship that's another good place to start, and a potentially useful defense skill that can be taught to others.
Re. how could someone develop an economic system that rewards short-term thinking:
It's all about money. What we have is a system in which a key element (money) is an an abstract quantity. And, the cost or value of that abstract quantity can increase exponentially over time (compound interest, return on equity, etc.). And last but not least, the increase in the value of that abstract quantity can proceed in a vacuum, regardless of all other circumstances in the physical world.
For example, the value of a farm loan to a banker can be plotted on a graph: this is a pure abstraction. But the actual output of the farm, with which to pay off the loan, is not an abstraction, it is a concrete empirical situation governed by a range of factors. Some of those factors are under control of the farmer, but some of the most important ones such as rainfall and temperature, are not.
If the value of the abstract was tied to the value of the concrete, then in a year when the farm lost productivity due to weather, the payment of the loan would be lessened accordingly. In fact this is what happens with profit on equity, i.e. an investor who owns a share in the farm will see a decreased profit (dividends or other types of return on equity) in bad years, increased profits in good years.
However, if the abstraction is not tied to the physical reality, then it will require its own terms to be fulfilled regardless: if the farmer can't pay back the loan in a bad year, the farm gets foreclosed and sold off to a developer to build sprawl on the land.
The fact that money is an abstraction allows it to be completely "liquid," i.e. to move in and out of investments as quickly as an investor's decision can be relayed to the market (the speed of electrons over a telephone or internet connection). Thus if an investor can earn more on investment B than on investment A, s/he will call up the broker and sell shares in B and buy shares in A. Meanwhile, B suffers the loss of working capital and may as a result go out of business.
As long as there is "somewhere else" that money can go to earn a higher profit, there will be an incentive for it to go there, thus there will be pressure upon the real-world factors of production such as labor, machinery, land, and natural resources. In some cases productivity can be improved through increasing the information content of an asset, i.e. improved technology, a more educated workforce, a better understanding of land and resources. However the other route to increase profit is to simply use up and burn through one's assets quickly. The latter route is purely short-term, but since the market systems allow for short-term participation ("speculation" i.e. buying and selling rapidly), this kind of short-term thinking is highly rewarded.
Once you understand these points, everything else falls into place. Except your blackberries of course, but for them you may need more goats:-)