[p2p-research] The problems of debt

Daniel Araya levelsixmedia at hotmail.com
Mon Jul 12 14:28:21 CEST 2010


How so? 

D

From: gurstein at gmail.com
To: p2presearch at listcultures.org
Date: Mon, 12 Jul 2010 14:21:08 +0200
Subject: Re: [p2p-research] The problems of debt






Message





This kind of 
Beck-ian discussion is as much a red herring as the 
original.
 
M

  
  -----Original Message-----
From: 
  p2presearch-bounces at listcultures.org 
  [mailto:p2presearch-bounces at listcultures.org] On Behalf Of Daniel 
  Araya
Sent: Monday, July 12, 2010 2:09 PM
To: 
  p2presearch at listcultures.org
Subject: Re: [p2p-research] The 
  problems of debt

Michel, you're presenting a false 
  argument IMO. Ryan is making the point that the entire system of capitalism 
  (all strata included) is highly productive-- the most productive system so far 
  in fact. Marx himself made the very same point...  
  

D




  
  Date: Mon, 12 Jul 2010 13:12:48 +0700
From: michelsub2004 at gmail.com
To: 
  p2presearch at listcultures.org
Subject: Re: [p2p-research] The problems of 
  debt


  this is of course very questionable ...
   
  put capitalists in a room, and they are tremendously unproductive, they 
  are only productive because workers are productive, but you could argue, that 
  the organisation of production is a form of productivity ... yet most of that 
  done is not done by capitalists but by a paid managerial class ... 
   
  also, as we now know, the most well-paid were actually destroying the 
  most value (there is a study of the NEF on that ... .. the added value of 
  capitalists and financiers is actually negative)
   
  so your statement that in capitalism, the more value you create, the more 
  you consume, is a nice piece of mythology, but unwarranted and disproven 
  ..
   
  you also discount social movements ... the Nordic countries have very 
  strong labour and social movements, could this be an explanation, rather than 
  mysterious goodness, that explains their social system,
   
  and is it a coincidence that the best-paid workers in the world, i.e. the 
  Koreans, also have the strongest unions?
   
  following your reasoning, the top 1% of the population mysteriously 
  created lots and lots more value ... yet, growth rates declined dramatically 
  since the 1980's
   
  Michel


  On Sun, Jul 11, 2010 at 10:58 PM, Ryan Lanham <rlanham1963 at gmail.com> 
  wrote:

  In the past and present, people of enormous 
    productivity (e.g. capitalists) consumed significantly in a way that others 
    see as wasteful.  Indeed it is.  But they view this as a reward 
    for their huge productivity.  Measuring productivity and value creation 
    is hard.  No one knows exactly how to do it.  But we do know that 
    people will argue that their capacity for value creation is greater than it 
    might actually be.  In other words, people negotiate for their own 
    benefit rather than society's.  If society does a bad job at evaluating 
    value of productivity, systems become very inefficient, and the machines of 
    society too often produce stuff people don't want as much as they could have 
    if the machines had been used efficiently.  

In capitalism, the 
    more value you create.  The more you get to consume.  In any other 
    system, immediate imbalances are inevitable.  The only possible non 
    capitalist system that can work, in my view, is one where moral 
    responsibility to the society is a sort of currency...as in Nordic 
    countries.  In those places, value producers subordinate their own 
    desires to those of others.  Why?  Who can say. 
    
    
    




    On Sun, Jul 11, 2010 at 10:50 AM, Ryan Lanham 
    <rlanham1963 at gmail.com> 
    wrote:

    Money is, in simplest terms, a machine.

It 
      isn't like a machine.  It IS a machine.  It is a machine that 
      either makes something others want (value) or it is a machine that makes 
      things only a consumer wants (i.e. consumption).

If it makes 
      consumption, it is used up.  If money makes value, like all machines 
      that can be used more than once, it is a value multiplier.  
      

If someone uses money to create value, then they are 
      productive.  Productivity leads to happier worlds because people have 
      things others want.  In an eastern-styled anti-desire world, these 
      systems do not apply...though there is ample evidence, given free choice, 
      nearly everyone wants something that is scarce.  Wanting fewer things 
      that are scarce is a sort of advantage in this new world, but it is a 
      choice most would not want to make freely.  People like cars, tools, 
      luxuries of all sorts...jewelry, prettier mates, etc.  These things 
      cost machinery...money to produce.  If they don't create further 
      value...then that is consumption.  Non productive consumption burns 
      up capital.  It is a fire in the machine shop.  Granted, it is a 
      necessary fire, but it is a fire none-the-less.

Build a good 
      machine...and value is created.  Build a worthless life or machine, 
      and value is consumed.    

      
      
      


      On Sun, Jul 11, 2010 at 10:33 AM, Ryan Lanham 
      <rlanham1963 at gmail.com> 
      wrote:

      I've been asked to explain debt problems as 
        influenced by technology.  I'll try.

Here's my 
        "theory".  Many others share or have versions of something 
        similar.  I claim no originality.  I've posted several 
        versions on this list.

1. Growth occurs when someone produces 
        something others value.  The sum total of value is the 
        economy.
2. In the past, it was a matter of work and labour to 
        produce something of value...like digging a hole where a hole was 
        wanted.
3. People learned to take money that was not in use and to 
        use it by borrowing it and then buying value-production which was then 
        placed on sale.
4. The process of 3 entails risk.  Risk was 
        rewarded by profit. 
5. The system of 3-4 really works quite well so 
        long as profit is likely.
6. In a world where learning and high 
        productive machinery requiring low skill levels is readily available 
        (i.e. post 1990 or so) making profit is harder.  7. Item 6 is 
        especially true if innovation is not protected by the state (e.g. 
        through intellectual property.)
8. Because profit is harder 
        especially in tangible goods and services (because of technology and 
        learning distribution) credit is harder.
9. When credit became hard, 
        the incentives to cheat increased.  People lent money badly and 
        then cleverly sold the bad loans to others who didn't understand.
10. 
        When 9 happened, the state had to decide whether huge firms fulfilling 
        important institutional roles would die, or be saved.  
11. 
        Nearly all states, especially in Japan and Europe, chose to save old 
        institutions (e.g. Royal Bank of Scotland), or in the US, AIG.
12. 
        There is now an open question as to whether markets can still create 
        value (e.g. the iPod) in such a way that debt is justified.  If 
        not, capitialism in the form that creates ready growth through using 
        unused money is screwed.
13. When money goes unused, it is difficult 
        to create new money and growth of value.  There is no/little 
        incentive to innovate.  This can be called "deflation."
14. 
        Deflation is more dangerous to capitalism by far than inflation.  
        Deflation means shrinkage of an economy because unused money becomes 
        more valuable by sitting than by being used.  Thus, people become 
        even more risk averse.
15. When 14 happens for a long time (e.g. 
        Japan) then demographic and institutional patterns start to become 
        unsustainable.
16. When 15 happens, we do not understand the long 
        term outcomes, but they don't seem good.

-- 
Ryan Lanham
rlanham1963 at gmail.com
Facebook: 
        Ryan_Lanham
P.O. Box 633
Grand Cayman, KY1-1303
Cayman 
        Islands
(345) 916-1712





-- 
Ryan Lanham
rlanham1963 at gmail.com
Facebook: 
      Ryan_Lanham
P.O. Box 633
Grand Cayman, KY1-1303
Cayman 
      Islands
(345) 
    916-1712





-- 
Ryan Lanham
rlanham1963 at gmail.com
Facebook: 
    Ryan_Lanham
P.O. Box 633
Grand Cayman, KY1-1303
Cayman 
    Islands
(345) 
    916-1712




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