So you believe there are Mathematical equations which explain the Markets?
On Oct 9, 11:42 pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Again no data, no emperical evidence. Marx provided mathematical data > for every single one of his theroies so they could be tested and > questioned. He attempts no such thing. > > On Oct 10, 1:46 pm, "M.A. Johnson" <[EMAIL PROTECTED]> wrote: > > > > > Adam Smith and Karl Marx's basic and monumental (in consequences) > > errorSeptember 5, 2007 9:28 PM by Juan Fernando Carpio > > What could these two thinkers, considered to be opposites, have in common? > > It turns out that Karl Marx inherits from Adam Smith a very basic error, > > one which has monumental consequences and has changed the world forever. > > Adam Smith tells us in his famous treatise on the wealth of nations that in > > primitive conditions or small towns, those who would go to the market to > > sell their produce, cattle or manufacturing obtained salaries (wages) from > > their neighbors in the process. Salaries? Grave error. > > What is obtained by someone who moves from agricultural self-sufficiency to > > the market is not a salary but rather a gain or a loss. Gains and losses > > are obtained by entrepreneurs. By definition, then, this could be a farmer > > or any independent professional in a city. > > A salary does not make an appearance until the role of the capitalist also > > appears. The capitalist is the person which takes previously produced > > resources and risks them. He is the one who buys or pays for a good or > > service to later sell something that is greater than the sum of the parts. > > And this can only be determined if the product is sold: this is the only > > signal, a signal that is lacking in totalitarian countries, that society is > > creating aggregate value. Smith errs greatly when he calls salaries that > > which entrepreneurs obtain when they trade in the city plaza. It is not > > until one person hires another, at a fixed, regular rate, that a salary > > exists. We can call this the pact of capitalism because it implies that the > > employee is now part of the capitalist's entrepreneurial risk. In exchange, > > the employee receives a fixed income (daily, monthly, etc.), a salary. > > Salaried employees have no possibility of gains, but --most importantly-- > > are free from losses. Indeed, they have a better chance of receiving income > > than the capitalist. The farmer, for example, must pay the salaries of his > > workers even if there has been a frost the day before harvest. He cannot > > burden them with a loss. Nor can he, to be fair, share with them the gains. > > A pharmaceutical company will sell its products four or five years after > > the initial idea of creating a new product. In the meantime, it will have > > to pay salaries to hundreds, even thousands, of people. That the salary is > > payed now is not contingent on future sales. > > Thus, the problem, brilliantly taught to us by Prof. George Reisman, is > > that the error shared by Smith and Marx permitted the idea that to obtain > > gains --the famous exploitative "surplus"-- capitalists had to keep a bit > > of each employee's salary. In reality, value is created by whomever imparts > > vision, risks resources and recognizes opportunities, all while creating > > regular income to others in the process. Capitalism creates a worldwide > > middle class. Before capitalists, everyone had to fully assume all of the > > risk of a given activity. Now, however, we can delegate risk to those who > > are more ambitious and capable in the entrepreneurial game and at the end > > of the month, we all receive a paycheck. This is infinitely more productive > > and effective and, ultimately, eliminates poverty.- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
