Closed Societies

Smith made some catastrophic faults. But the concept is quite appealing.

If we figure a society that is stuck in this separation into capitalists as in employers and employees, we will still get positive results, or what economists like to call an equilibrium.

Prerequisite: borders. A closed economy. The idea: even if capitalists abused employees and pushed them down to the lowest possible wage, their will be a development:

The more capitalists exploit employees the more they will have, and thus, one way or another, consume, meaning create demand.

And as the demand for goods/services will increase so will the demand for labor. And this is when we will see an increase in wages.

Meaning: the moment we take a look at a closed group, or two groups but being wrapped into one package, there will be no out of this package. For no one.

Thinking about markets, I very much like the picture of the water level of different vessels that are connected.

The water will always have the same height, no matter if some vessels are bigger and others are smaller.

So, wealth is basically fluid. But drill a hole into one vessel, and it will all be gone. We have to watch our borders.

I would be happy to provide a livelihood to the world, to the poor, play Jesus, if I could. Especially on someone else’s cost.

Maybe, we first regain control of our own livelihood. Or, actually, maybe we first begin to understand our livelihood, and how to maintain instead of totally destruct and destroy it.

Cheap workers are great for those who want to hire. At first sight.

This is the whole thing about arbitraging. You can realize a competitive advantage by hiring cheap workers abroad. For another second.

The moment one company does so will be the moment others will follow, will have to follow and any competition of these companies will then bring down output prices and thus eat all profits from hiring cheaper workers.

Actually, the moment one firm starts in hiring cheap, or just bringing down wages, or outsourcing production to cheaper countries, this very firm, by way of competition, will force all other firms to follow' .

Competition is not freedom. It is coercion.

Bringing down output prices, then again means deflation, and an increase of real wages. For those who still have a job. And for another second?

This is not a final picture. This is a glimpse. Under many conditions. It's one step on the path economists like to call an equilibrium. A global equilibrium will be reached once we all have the same wages, prices, etc. That's a long path. Into poverty.

There is a lot of propaganda across all media for bringing down all borders, and nations. And against the background that media are owned by mostly very rich people, this certainly makes sense.

We might wanna regain control of our propaganda machines, too.