The banality of the economy (ideology) of the free market.
Saturday, December 18, 2010
Cover Letter To Victoria's Secret
Taken from: Appeal to the People
The image is taken from the site
Luca Correani
Just browse the front pages of a book in microeconomics to immediately see what are the conceptual categories that are at basis of modern economic thought. The first chapter is sure to be dedicated to the consumer
the second company.universities, teaches the student that the consumer wants to maximize the utility and it does consume as many goods as possible and the firm, instead, maximize profits.
The functioning of the economy is so enclosed in two well-defined activities: production and consumption.
Economic theory tells us that a prosperous nation if the production of its industry is constantly growing and with it the consumption of goods produced. Mathematical models, increasingly complex and incomprehensible, show that the free market and deregulation facilitate this process. The state must therefore intervene only in exceptional cases as his actions cause distortions in the natural balance between supply and demand.
do not need a PhD in economics at MIT in Boston pears understand how a system based on growth
smisurata della produzione di merci e sul loro consumo sia destinato ad un inevitabile collasso, soprattutto quando la ricchezza prodotta confluisce principalmente al capitale piuttosto che al lavoro.La continua ricerca della massimizzazione dei profitti, la necessità di garantire rendimenti crescenti agli azionisti e la presenza di forme di mercato ben lontane dalla concorrenza ha spinto le imprese da un lato ad adottare una politica di riduzione dei costi, dall’altro ad aumentare i prezzi. La perdita di potere d’acquisto del reddito da lavoro è in effetti un fenomeno evidente a tutti e comunque in atto
daben prima della crisi che stiamo vivendo. Per molti anni il sistema finanziario ha cercato di evitare l’inevitabile crollo dei consumi (e quindi dei profitti delle imprese) attraverso la concessione di credito al consumo. Ma nemmeno questo è bastato. per garantire la crescita continua del PIL si è resa necessaria la concessione di prestiti anche a soggetti privi di garanzie e dichiaratamente insolventi.
L’ingegneria finanziaria ha poi organizzato il trucco della riallocazione sul mercato finanziario di questi prestiti, con la promessa di rendimenti enormi, dando il via ad una stagione di forti e incontrollate speculazioni.
Il sistema bancario si è così trasformato, perdendo del tutto la propria funzione di finanziatore development to become rather skillful speculator, paying virtual money to people without collateral and earning real money from financial brokerage companies which yielded the debts, the latter, then, by reassigning those claims from the public, that it was intended to sustain huge losses following the burst of the bubble.
The crash occurred when the system is the enormous value created by these operations has proved to be false and without any connection with the real economy.
the free market has demonstrated its inadequacy in front of human greed and the expense is a citizen who has been due not only scale their consumption (but this is positive), making the financial crisis in the crisis of overproduction, but with its own taxes refinance banks
and (albeit to a much more limited) companies overwhelmed by the collapse of the system.Suddenly the government action was called by all, even by economists rated the most liberal fundamentalist.
The free market economy and GDP growth has demonstrated its unfounded scientific proving to the world as pure ideology, an ideology that observed with cold eyes, turns out to be very trivial.
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