Posts
I have included below a great comment made by a fellow blogger (writingsonthewall) in response to another post on one of Stephanie Flanders' blogs:
"... I would add to that and point out that the media's insistence on portraying lenders and investors as wealth creators is in fact a lie ....
... Can anyone explain how witholding resources (money) in order to engineer a situation that you can overcharge for the loan of capital and make profit is generating anything? In any other walk of life this would be described as blackmail - in business it's called 'wealth creation' ...
... Does that mean if I freeze frogspawn until I'm ready to defrost it that I have in fact become 'the creator' - i.e. God of the expected tadpoles? ... Surely, as the person who 'allowed the birth' of the tadpole I am creating life? ...
.... What do you mean I have only interupted it's natural progression? ... Oh dear, the idea that the wealth is created by any other means than applied labour to a commodity is laughable ... Manipulating scarcity is not creation of wealth, profiting from allowing progress and development to continue is not creating wealth ...
... That is why the system collapses, the monetary value placed on all the goods and services is actually far in excess of the actual value of those goods and services ... When the world works this out we get recession as we have to 'mark to market' our values and retract our growth expectations - the capital has to be destroyed - it happens unevenly so you get failures in sectors and particular businesses - i.e. Northern Rock ...
... Until the country accepts this is a lie then it will forever be bouncing from boom to bust ...
... Don't take my word for it - look at the Economy. Look at your lying politicans, your lying Economists, your lying bankers - they led you here and not one of them knows how to get you out. The only thing they can do is ask you to save their skins - by commiting yourselves to working longer and harder than you already do ...
... Not one of them will agree with me - which is a sure fire way of proving I'm right! ... Who's up for a debate about what wealth creation actually means? ...
... If the high net worth people are truly wealth creators - then why are they not creating some now? It's not like we couldn't do with some is it? ...
... Ah - because just as Gordon Brown took credit for the boom - when he actually had no control over it at all, the wealth creators can only take credit for their talents when the Economy is on the up ...
Coincidence? - or are they simply lying...."
-----------
Wise words indeed, and as far as ideas/debates about wealth creation go, I'm with them (e.g. see my previous post 'wealth creation vs wealth manipulation'.
