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Reply to "New Black Conservative Website"

quote:
Originally posted by toussaint:
Zero Sum Game: A situation in which a gain by one person or side must be matched by a loss by another person or side.

No situation than any of you have brought up has fit this definition.

BTW if any of you are yearning for a system where no one ever loses a job, it's already been tried. See: Soviet Union.

Otherwise, your attacks on capitalism are really pointless, as any system that allows people to provide for themselves and better their lot will have job turnover.


Anytime there is a competition there is winners and losers. Capitalism is all about competition and thus produces winners and losers. The only way you cannot have winners and losers in competition is to have a DRAW or TIE. Thus, if entities are competing for capital investment an entity winning those investments means another entity losing those investments.

Now, I am about to go over your head in that economics are bound by the physical laws of nature of this closed system we inhabit. E=mc2. Everything breaks down to matter and energy, including the components of the systems of economics. There can NEVER be a NET GAIN of matter or energy in a closed system. The only thing that can happen is that transformation takes place as things change from one form of matter and energy to another form of matter and energy. As a biological example, life is maintained through death. For life to survive it must devour other forms of life and via a metabolic process that matter and energy gets transformed from the victim to the host. This is how nature works.....economics is bound by the laws of nature....and hence this is how economics works.

The problem with realizing this with economics is population growth. If population were stagnant, there would be no new workers or no new consumers to fuel economic growth, assuming people not working more than 10 hour days. Thus, the only way for a company to get additional workers or find additional consumers is for other companies to lose workers and consumers, but the pool of labor and consumers is fixed by stagnant population growth.

What population growth does is that it makes the pool of workers and consumer dynamic and not static and new opportunity is gained by virtue of the increasing pool of potential workers and consumers. A good way to think of population growth is to think of it like inflation. Inflation is the phenomenon of a decline in purchasing power of a unit of currency. Now, if you purchased your home ten years ago for 100k and today it's worth 100k, nominally it would appear as if your home has maintained its value. Wrong? Due to ten years of inflation, your home should have increased to 130k, assuming 3% annual rates of inflation. Thus, in fact you have experiences a LOSS.

This is the point that escapes Toussaint Forsure. He does not see a loss if one geographic location is gaining investment and jobs, but anytime a geographic location is not gaining jobs in pace with population growth, its actually experiencing a loss, just as when a home or paycheck is not increasing with the rate of inflation, one is experiencing a loss.


In summary, what makes the PIE grow is population growth, which adds new workers and consumers and allows for new profits by owners of capital. Incidentally, this is why capitalism is always seeking to expand geographically and to convert non capitalistic nations to capitalism, to accelerate the growth of new workers and consumers...and hence potential profits from their exploitation/use.
This is why that given the population growth is always increasing the potential size of the pie, that the zero sum manifest in relative percentages and not absolutes. It's like the market share for automobiles. The US auto industry has lost market share to Asian car market. The resultant is that US auto manufactures cannot provide jobs to US citizens because of the loss of market share, where as if not for the gains of the Asians, they could and would. Thus, it's obvious that there is a zero sum dynamics going on in the automobile industry as Asia gains is translating to Americans losses. Such realities are evident all over the system if one looks closely and intelligently.
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