James Rogers <jamesr@best.com> wrote:
> At 07:38 PM 1/19/99 -0000, Damien R. Sullivan wrote:
> >But many people now would take a lower growth of the pool in return for a
> >more certain share. And they band together or pressure the government for
> >relief from the vigors of pure competition. Farmers, manufacturers,
> could certainly help. The cliche "expenses rise to meet income" expresses
> a common symptom of this behavior. Most cultures implicitly encourage
A large theme of Galbraith's which I did not go into was the significance of advertising. However, he is not one of those who thinks that advertising by itself warps society and makes the market model irrelevant, that it's a puissant form of mind control. Rather, the fact that ads work at all (at least for demand creation; market share competition is a different matter) indicates that most people have, literally, more money than they know what to do with. The hungry, homeless, and ambitious (whether for a mansion or an early retirement) have no need to be told what they want.
He does think that once this process of demand creation starts then
market analysis moves to shaky ground, when production is satisfying the wants
production has created, but I don't go there now.
(Minimum income societies)
> received its instantiation surplus from the latter. Governments and
I note that Alaska seems to be trying: putting oil money into a trust fund
whose dividends go to the citizens of the state. The dividend's about $1000
dollars, so we're not talking good survival money yet, but I'd think the fund
big enough to be tempting. I suppose the real test will be when the oil runs
out: raise taxes, or plunder the fund? They'll have to modify
> politicians almost never demonstrate the discipline required to amass huge
> surpluses of cash, particularly over a span of decades. Such government
> amassments are almost always plundered long before maturity.
As you say, the examples are few. And small. (Also cold. I keep wondering about that.)
> increased through intelligent investment. I do not think the entire world
> could do this without crumbling into the classic socialism that we love to
> hate; the secret to this model is that individuals external to the society
> effectively foot the bill for your free lunch.
How so? By buying the oil? By providing growth your small country's investments can skim?
-xx- Damien Raphael Sullivan X-)