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The 1%
Message
From
04/02/2014 13:24:38
John Ryan
Captain-Cooker Appreciation Society
Taumata Whakatangi ..., New Zealand
 
 
To
03/02/2014 17:16:10
General information
Forum:
Finances
Category:
Investment
Title:
Re: The 1%
Miscellaneous
Thread ID:
01592816
Message ID:
01593161
Views:
43
>>When someone asks a question like "how do we get the government to create wealth", doesn't it seem like there are some implicit statements in there?
>>Seems to me if we're on this mission to create wealth for wealth's sake, we're doing it wrong.
>>If we can't appreciate and be content with what he have now, adding more of it won't magically give us that ability.
>>That's the myth. That's the false premise.

Everybody is not focused solely on their own benefit.

For every worker "exploited" in China there's a worker in Detroit who could have done the work and once would have. Instead the work is done by the exploited Chinese girl because she is cheaper than the Detriot fellow. This decision is not made by consumers, it is made by the manufacturer. Apple, to use your example.

Apple devices are not cheaper because they are made in China. For a while I bought smartphones directly out of China for a fraction of the cost. Apple could have them made in Detroit with no change in retail price if Apple were prepared to normalize its dividends to pre-outsourcing days and if the market would allow the share value created by large margins to retract. Or if consumers were willing to pay extra to preserve the huge margins. But in real life, Apple never will do it because powerful investors would punish the company and its executives and consumers can't be expected to pay extra so that big shareholders get a fatter return. If you are anticipating a groundswell of public pressure, that's not realistic. Increasing the price risks a groundswell of Apple Fanbois switching to Nexus 5, with Apple executives caned for being so stupid. It will require a massive sea change in societal thinking for these trends to change... and sorry, that seems less likely than disenfranchised physically strong people deciding the Social Compact has nothing for them so it's time for a new one. This is more likely because of blinkered views that pay no heed to this at all- e.g. those who have no trouble identifying exploited Chinese often seem blind to generations of US citizens with no jobs or prospects, but still expected to honor the Social Compact.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us.
"
-- Shakespeare: Coriolanus, Act 1, scene 1
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