• By Rob
  • May 29, 2017
  • No Comments

Mon May 29, 2017 11:07 PM

Moved to WordsFromRob blog.

I continue to think about alternative economic systems, because I truly believe, and I have to believe, there is something better than this.

One thing that is causing a problem with ideas of alternative market systems is value creation. Without added value in a market, inflation ensues when more money is added. What happens when an organization creates value faster, cheaper, and on a bigger scale? (see Amazon and Walmart) They suck the money out of the rest of the economy. I don’t dispute that they are creating value, even if they are creating other problems (or externalities that economists like to call them).

This vacuuming of currency from the rest of the economy destabilizes it, and I’m not talking about creative destruction. This hyper-competitiveness weakens and will eventually kill the market unless the government intervenes and redistributes the ever-accumulating savings. I don’t think this is just a capitalist problem. This hyper-competitiveness would affect any market system that would allow organizations to use very smart people to automate, scale, sell cheaper, produce more, and use superior marketing.

On a side note, I suspect that on average, we have little inflation in this country, but what do we get when you remove the most wealth that is horded by corporations (the outliers)? There should be greater inflation because there’s less money in supply for the rest of us. Maybe more money is being printed than there should be to make up for this hoarding of wealth.


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