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RE: Rent Seeking

in #economics4 years ago

I believe in balance. Classic economics was about finding balance.

In classic economics, "capital," "rent" and "labor" are means of production.

Modern intellectuals like to create conflict where balance is in order. Marx wanted to create a conflict between capital ownership and labor. So he wrote a dense tome called "Das Kapital" which presents a market that over emphasizes capital. He then wrote a "The Manifesto" to rise people in revolt against the strawman he created.

Rent is just something that exists in the economy. The Rent-Seeker overemphasizes rent.

In leveraged buyouts corporate raiders use junk bonds to take over companies. They then place the junk bonds on the balance sheets of the raided company. In this situation, the private equity firms are interest bearing credit in a situation better suited for equity investment. This stunt, creates a systemic fault.

I think the downvotes play a vital role in the Hive ecosystem. Yesterday I decided to drop three down votes on accounts that used uncredited plagiarized images.

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"I think the downvotes play a vital role in the Hive ecosystem."

Neither I nor Bernie disagree.

The conflict between labor and capital Marx envisioned was unnecessary to create, as it is a natural result of the interests of the actors, just as it is between predators and prey in the natural world. He may have intended to accelerate it, and I am incompetent to say whether he succeeded or not.

I lean towards not, as capital knows full well how to gauge it's ability to prosecute undertakings, and await nominal preparations.

While I am no Marxist, I see that today the conflict between capital and labor is about to become literal war. The cutting edge of technology is decentralization, and this is developing across all industries today. As means of production are distributed to individuals, the flow of resources to pools of capital - and the overlords that possess them - is diminishing, because making your stuff yourself is not a taxable event, nor creates trade, or at least greatly diminishes trade and profits.

Overlords aren't going to permit that to happen to them, and they will literally destroy civilization before allowing their control to lapse, regardless of consequences to their quality of life. They have only one overriding goal and purpose, and this is to be overlords. All else is subsidiary to that existential need, and the conduct of their entire lives reveals the fact.

However, physics is intractable. No matter they bribe or extort public servants, manufacturing concerns, or even society one individual at a time, the laws of physics mandate decentralization of the means of production until consumers produce all their goods and services, because it is more efficient.

So, war. It's happened before, I think. Perhaps we will be able to surmount this hurdle this time, and move civilization forwards. If we do, we will do so as free people, not lorded over anymore, for good or ill.