Friday, January 6, 2012
The Inefficency of Capitalism
Right now there are too many houses on the market. This is a direct reflection of market inefficiency. Instead of blaming Fannie Mae and Freddie Mac, why not blame the home builders, who obviously over built, built houses that were too big and built too many of them. We need a competing narrative. Right now it's blame the poor people. I think we should look the problem in the eye and blame the capitalists. Instead of taking the growth in productivity gains and spreading the wealth to the people who actually do the work, they put the money in their own pockets. Then they blamed China for moving jobs overseas. Instead of designing and making a better whatever , all our capitalists can think about is paying less for labor. Labor costs are not the problem with our economy. The problem with our economy is the cost of fat management which is hogging all the profits. The top 1% is taking home the pay of the other 99% and then wonders why people aren't shopping. Duh. The market is not flawless. If it were, Goldman Sachs would be out of business. Wall Street is no longer connected to the business of making stuff. They are in the business of moving paper around. They are dangerously disconnected from reality, they don't earn the money they make and have no skin in the game. A teacher is more valuable than a stockbroker, but the market doesn't agree. Seems to me there is something wrong with the market.
Subscribe to:
Post Comments (Atom)
What is so sad today is that people who went to school to become teachers are SO in debt that they can't make ends meet. If you have a college debt of 50k but make 34k. How the heck can you pay that off?
ReplyDelete