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The ignored Adam Smith

Discussions about the economic and financial ramifications of PEAK OIL

Re: The ignored Adam Smith

Unread postby bluekachina » Tue 27 Jul 2010, 06:52:34

$this->bbcode_second_pass_quote('Cid_Yama', '')$this->bbcode_second_pass_quote('Pretorian', 'T')his is a competitive world we have here


No, this is a subjugated world we have here.

A competitive world would entail a truely free market.

Instead we have a rigged financial and political system that ensures the rich get richer and the poor get buried in debt.

Everyone knows that in a rigged game, the outcome is a forgone conclusion. No risk, no competition.

$this->bbcode_second_pass_quote('', 'C')hurchill spoke eloquently about how debt was a far better weapon against rowdy natives than the Gestapo or the state-capitalists in the Soviet Union’s KGB.

Debt would allow “great men” to reach their destiny without insufferable wretches, the public, getting in their way. Institutionalize debt internationally and it would also allow great nations to rule quietly and with Adam Smith’s “silent hand.” “Or else we should be forever trapped within our mansions.” said Churchill.

Adam Smith however would today be classed as a left wing economist, the Joseph Stiglitz of his age. He wrote, also eloquently, about how markets needed justice in order to function, otherwise the merchant class would spew despair and misery around the world. He was correct.

link

I have no illusions about ever living in a world free of subjugation, but I deliver a warning.

Throughout history, whenever the concentration of wealth at the top became this great, and the needs of the masses ignored, revolutions have occurred.

The Russian and French revolutions are good examples. In neither case was the outcome for the wealthy a desirable one.

In other words, loosen the financial grip, before they loosen it for you. Trust me, you won't like it.


I would probably rephrase that

Instead we have a rigged financial and political system that ensures the powerful maintain power and the poor are subjugated by being bound with chains of debt.

Pretorian,

Only in extremely rare circumstances do the poor become rich, usually through some technological advance of some kind, and those in power do their best to crush them as they rise. Bill Gates is the perfect example. TPTB tried extremely hard to take him down. Only through luck and at extreme cost did he persevere.

Even at the level of small businesses, which isn't getting rich by any means, the local powers, through the use of permits, fees, licenses, taxes, zoning and inspection processes, along with all the graft that goes along with that, make it extremely difficult for new businesses to begin and survive.

It appears to be intended to discourage the working class from moving up. You have to have serious capital at the start to even think about it, and the chances are high that you will lose it.

Social mobility in western nations is largely a myth. Propaganda for the masses.

It is a clear fact that, in a rigged system, competition is thwarted.

Pretending that the masses are not subjugated does not make it so.

It seems that it is you, Pretorian, that refuses to face facts, and prefer to live among your ideological delusions.
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Re: The ignored Adam Smith

Unread postby americandream » Tue 27 Jul 2010, 07:33:31

Cough, cough. Yeah. Bill Gates. Sounds like we will be sanctifying the holy Bill Gates at the rate we're going. :lol:
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Re: The ignored Adam Smith

Unread postby bluekachina » Tue 27 Jul 2010, 07:43:39

Adam Smith said:

No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. It is but equity, besides, that they who feed, cloath and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, cloathed and lodged. (WN I.viii.36).

This only makes common sense. To deny them at least this much, would result in eventual rebellion, and the very system that maintains the power of the ruling class would collapse.

You know, killing the goose that lays the golden eggs?
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Re: The ignored Adam Smith

Unread postby americandream » Tue 27 Jul 2010, 07:48:59

In the country where greed is a virtue, equity has departed.

$this->bbcode_second_pass_quote('bluekachina', 'A')dam Smith said:

No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. It is but equity, besides, that they who feed, cloath and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, cloathed and lodged. (WN I.viii.36).

This only makes common sense. To deny them at least this much, would result in eventual rebellion, and the very system that maintains the power of the ruling class would collapse.

You know, killing the goose that lays the golden eggs?
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Re: The ignored Adam Smith

Unread postby Pretorian » Tue 27 Jul 2010, 09:22:36

$this->bbcode_second_pass_quote('bluekachina', '
')Social mobility in western nations is largely a myth. Propaganda for the masses.

It is a clear fact that, in a rigged system, competition is thwarted.

Pretending that the masses are not subjugated does not make it so.

It seems that it is you, Pretorian, that refuses to face facts, and prefer to live among your ideological delusions.


What? I never said that masses arent subjugated, that competition isnt thwarted or that masses arent brainwashed since daycare. They are. Political Correctness in USA is one of the brightest examples. Still there is a mobility. If you are willing to make sacrifices and take the risks, that is.
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Re: The ignored Adam Smith

Unread postby ian807 » Tue 27 Jul 2010, 17:54:07

$this->bbcode_second_pass_quote('Pretorian', 'S')till there is a mobility. If you are willing to make sacrifices and take the risks, that is.

Quite so, assuming you chose your parents wisely (wealthy, educated, healthy and inclined to fund your education and career) and manage to avoid both accidents and crippling diseases. Oh, and try not to be a minority. Other than that, the field's wide open.

Note. Yes, there are exceptions to the above. I believe you'll find that most of them fall in the realm of "lucky."

In the majority of cases, however, self congratulation is a bit unwarranted, since like it or not, current success is usually based on previous success - often that of your progenitors.
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Re: The ignored Adam Smith

Unread postby Pretorian » Tue 27 Jul 2010, 18:53:06

"Those who seek fortunes, more than rarely di find them. Those who do not seek them, do not find them ever.
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Re: The ignored Adam Smith

Unread postby Cid_Yama » Tue 27 Jul 2010, 20:36:45

$this->bbcode_second_pass_quote('', '[')b]A thought-terminating cliché is a commonly used phrase, sometimes passing as folk wisdom, used to quell cognitive dissonance. Though the phrase in and of itself may be valid in certain contexts, its application as a means of dismissing dissent or justifying fallacious logic is what makes it thought-terminating.

Lifton said, “The language of the totalist environment is characterized by the thought-terminating cliché. The most far-reaching and complex of human problems are compressed into brief, highly reductive, definitive-sounding phrases, easily memorized and easily expressed. These become the start and finish of any ideological analysis.”

In George Orwell’s novel Nineteen Eighty-Four, the fictional constructed language Newspeak is designed to reduce language entirely to a set of thought-terminating clichés.

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Re: The ignored Adam Smith

Unread postby Shar_Lamagne » Wed 28 Jul 2010, 05:26:49

Capitalism was supposed to provide us with the best quality products at the lowest possible cost. Right? Well, we all know how that worked out.

We get the crappiest products at the higest price the market will bear.

It's all been one big scam.

Why does anyone even believe anymore?
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Re: The ignored Adam Smith

Unread postby americandream » Wed 28 Jul 2010, 05:29:47

In the words of one of history's great myths, "Father, forgive them for they know not what they do."

$this->bbcode_second_pass_quote('Shar_Lamagne', 'C')apitalism was supposed to provide us with the best quality products at the lowest possible cost. Right? Well, we all know how that worked out.

We get the crappiest products at the higest price the market will bear.

It's all been one big scam.

Why does anyone even believe anymore?
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Re: The ignored Adam Smith

Unread postby MarkJ » Wed 28 Jul 2010, 08:44:52

$this->bbcode_second_pass_quote('Shar_Lamagne', 'C')apitalism was supposed to provide us with the best quality products at the lowest possible cost. Right? Well, we all know how that worked out.

We get the crappiest products at the higest price the market will bear.

It's all been one big scam.

Why does anyone even believe anymore?



Capitalism responds to customer demand. Whether a customer wants a cheap, good, better, best or elite product or service, they vote with their wallets.

Quality of many inexpensive products is also quite good. I just bought a $59 China Made knock-off of my $500 hub bearing removal tool that works like a charm, plus has more adapters than my expensive professional set.

Some of the imported ratchet sets, socket sets and adjustable wrenches we bought were so good that we ordered dozens of them.

The $59 dollar air conditioners we bought a couple years ago are still going strong, as well as 3 - $49 air compressors we bought at the same time.

We just paid less for a load of imported hardwood plywood than we're paying for garbage BC that we rejected since the condition was so poor.
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Re: The ignored Adam Smith

Unread postby ian807 » Wed 28 Jul 2010, 12:08:18

The actual effect of capitalism is to provide ever rising levels of mediocrity. Most non-luxury items become "Wal-Marted" - just good enough to sell, and no more.

At first, new items are expensive and high quality (e.g. cell phones). Economic forces soon enforce minimum quality, and we get disposable cell phones that break in a high wind.

I'm not quibbling about this, by the way. It's worked for centuries now and many more of us do, undeniably have a higher standard of living in most ways, than our ancestors did.
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Re: The ignored Adam Smith

Unread postby Pretorian » Wed 28 Jul 2010, 13:25:19

$this->bbcode_second_pass_quote('Shar_Lamagne', 'C')apitalism was supposed to provide us with the best quality products at the lowest possible cost. Right? Well, we all know how that worked out.

We get the crappiest products at the higest price the market will bear.

It's all been one big scam.

Why does anyone even believe anymore?


Believe? Supposed to? Capitalism is not a belief system, unlike Socialism or Communism. Capitalism is nothing but ability of an individual to own means of productions+ free market. Since there are no free market, there is no such thing as Capitalism really.
Now, if you really wanted some crappiest products , you should really have visited a vegetable store in Sovet Union.
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Re: The ignored Adam Smith

Unread postby dsula » Wed 28 Jul 2010, 13:42:43

$this->bbcode_second_pass_quote('Shar_Lamagne', 'W')e get the crappiest products at the higest price the market will bear.

It's all been one big scam.

Why does anyone even believe anymore?


Excellent observation. Also I see a great business opportunity for you. Why don't you make some high quality products and sell them cheap? I'm sure you're gonna be succesful.
But wait. That would actually mean that you'd have to buckle down, scrifice, take risks, innovate and invent. And that's sure is a lot harder than just sitting there blaming the successful for your suckiness.
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Re: The ignored Adam Smith

Unread postby Shar_Lamagne » Wed 28 Jul 2010, 20:58:24

the original post:

$this->bbcode_second_pass_quote('Cid_Yama', '')$this->bbcode_second_pass_quote('', 'S')ociety, however, cannot subsist among those who are at all times ready to hurt and injure one another. The moment that injury begins, the moment that mutual resentment and animosity take place, all the bands of it are broke asunder, and the different members of which it consisted are, as it were, dissipated and scattered abroad by the violence and opposition of their discordant affections. If there is any society among robbers and murderers, they must at least, according to the trite observation, abstain from robbing and murdering one another. Beneficence, therefore, is less essential to the existence of society than justice. Society may subsist, though not in the most comfortable state, without beneficence; but the prevalence of injustice must utterly destroy it. (TMS II.ii.3.3)

What chiefly enrages us against the man who injures or insults us, is the little account which he seems to make of us, the unreasonable preference which he gives to himself above us, and that absurd self-love, by which he seems to imagine, that other people may be sacrificed at any time, to his conveniency or his humour. The glaring impropriety of this conduct, the gross insolence and injustice which it seems to involve in it, often shock and exasperate us more than all the mischief which we have suffered. To bring him back to a more just sense of what is due to other people, to make him sensible of what he owes us, and of the wrong that he has done to us, is frequently the principal end proposed in our revenge, which is always imperfect when it cannot accomplish this.(TMS II.iii.1.5)

No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. It is but equity, besides, that they who feed, cloath and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, cloathed and lodged. (WN I.viii.36).

An educated populace can, to a degree, regulate political actors who may wish to take advantage of inequalities for their own benefit. The uneducated are easily misled and suffer for it. The more the ‘inferior ranks of people’ are instructed, Smith says,

the less liable they are to the delusions of enthusiasm and superstition, which among ignorant nations, frequently occasion the most dreadful disorder. An instructed and intelligent people besides are always more decent and orderly than an ignorant and stupid one. They feel themselves, each individually, more respectable, and more likely to obtain the respect of their lawful superiors, and they are therefore more disposed to respect those superiors. They are more disposed to examine, and more capable of seeing through, the interested complaints of faction and sedition, and they are, upon that account, less apt to be misled into any wanton or unnecessary opposition to the measures of government. In free countries, where the safety of government depends very much upon the favourable judgment which the people may form of its conduct, it must surely be of the highest importance that they should not be disposed to judge rashly or capriciously concerning it.(WN V.i.f.61)

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Smith does have a lot to say about Social Justice, but it is ignored by those who's actions would not be justified by it.

If Capitalism is to survive, it must work hand-in-hand with social justice. To ignore that part of the equation, invites dissent and revolution that will reduced us to the equality of poverty.


To constantly use Adam Smith to justify modern day (what passes for) Capitalism, but to ignore the other side of the equation as expounded by Adam Smith is intellectual dishonesty.

What passes for Capitalism does not work for the vast majority. It is a means of subjugating the masses and imposing a system for transfering the product of the working class to the control of the ruling class to the detriment of the working class. As someone said before, "Harvesting".

$this->bbcode_second_pass_quote('', 'E')ven at the level of small businesses, which isn't getting rich by any means, the local powers, through the use of permits, fees, licenses, taxes, zoning and inspection processes, along with all the graft that goes along with that, make it extremely difficult for new businesses to begin and survive.

It appears to be intended to discourage the working class from moving up. You have to have serious capital at the start to even think about it, and the chances are high that you will lose it.

Social mobility in western nations is largely a myth. Propaganda for the masses.

It is a clear fact that, in a rigged system, competition is thwarted.


In a corrupt system like that, why would anyone want to put their capital on the line? That would be foolish. Best to eliminate the corrupt system first, or work outside the system.

How much is unaccounted for due to black market and "working under the table"?

How much of the crime that exists is a direct result of the corrupt economic system imposed on the masses?
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Re: The ignored Adam Smith

Unread postby americandream » Wed 28 Jul 2010, 21:18:03

Excellent post shar_lamagne!
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Re: The ignored Adam Smith

Unread postby Shar_Lamagne » Sun 23 Jan 2011, 20:57:30

Thanks.
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Re: The ignored Adam Smith

Unread postby patience » Tue 25 Jan 2011, 14:59:08

Thanks, Cid, for your posts. I have always enjoyed them. It is a shame they often draw fire like this one has. Thanks also for the rest of you who contributed well to this thread.

I just hate having to wade through the less-than-stellar thinking to get to the good stuff. This forum used to be really nice. Quite a loss to become what I see here now all too often. I still check in from time to time, but less often lately.

Just so it doesn't go over anyone's head here, it is folks like you Pretorian, that I object to.

I'll go back to other forums now, where this sort of thing is not tolerated.
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Re: The ignored Adam Smith

Unread postby vision-master » Tue 25 Jan 2011, 15:16:40

Those doomer cult 4ums? I quit one today. :)
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Re: The ignored Adam Smith

Unread postby Shar_Lamagne » Wed 26 Jan 2011, 05:49:18

What an excellent example of what Patience was talking about. Thank you Vision Master.
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