[Kooler] Is the US already bankrupt?
alcocer at helixdigital.com
Tue Dec 31 12:54:59 PST 2002
On Tue, Dec 31, 2002 at 12:34:29PM -0800, John Oliver wrote:
> On Tue, Dec 31, 2002 at 11:51:07AM -0800, Dario Alcocer wrote:
> > * you're assuming that the increased profits are reinvested here.
> > what if the profits are instead invested elsewhere, or the profits
> > go into conspicuous consumption that doesn't create new jobs here?
> One mans consumption is ten other mens livlihood. Yachts and Bentleys
> have to be built like anything else. If I run a company that makes huge
> profits, and I decide that, instead of growing my business I just want
> to live like a sultan, all the money I spend *still* goes back into the
You haven't addressed the point I made above: what if the spending
buys imported goods?
> > That's what I'm *afraid* of; what if they instead decide to resort
> > to illegal activities to make up for their income loss?
> Some people do that anyway. And it isn't a justification, anyway...
I didn't say that the activity is justified, I only stated that it
will happen; it's happened elsewhere, and there's no reason to
believe it wouldn't happen here to.
> > I'm not willing to accept this on faith. In fact, I'd say a long-term
> > labor surplus has been created in many developing countries, witness
> > the huge numbers of unemployed in the large cities like Mexico
> > City, Sao Paulo, etc. I think that long-term we may be creating
> > a similar situation here; I hope not, though.
> The difference is, we have the capacity to absorb our unemployed.
Are you willing to accept the possibility that this might not be
the case anymore? If not, that's fine, but I'd rather consider
this contingency and plan accordingly. Self-delusion doesn't make
the problems go away.
Dario Alcocer -- Sr. Software Developer, Helix Digital Inc.
alcocer at helixdigital.com -- http://www.helixdigital.com
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