Hugely handicapped by being called Damien, a massive embarrassment for anyone to bear, Herald reporter Damien Venuto, in an otherwise very good report on the demise of Media Works’ closed FM radio show after it failed to attract an economic audience, concluded, “this is just the cold, brutal reality of capitalism…”
No Damien, it’s nothing to do with capitalism. It’s the cold reality of the market economy, a quite different phenomenon.
Capitalism still prevails today in some oil-rich Arab states but otherwise has not been a meaningful economic factor since the early-mid 19th century.
All of today’s great multi-billion fortunes, such as with Musk, stem from innovation rather than the possession of capital.
The mid-19th century advent of the German devised limited liability company brought about a huge economic expansion as it allowed the market economy to flourish. Hitherto innovative economic activity was largely the domain of a wealthy small faction.
The limited liability company structure was also economically democratic in opening up participation to everybody without fear of being wiped out and not just the domain of the already wealthy.
Another aspect of the lively market economy is the misunderstanding regarding constant company collapses. If these didn’t occur then it would reflect a failure in the economy slipping back to a capitalist monopolistic situation market.
It’s why all western governments are hyperactive in intervening whenever a monopolistic situation arises albeit admittedly through their success
Economic theorists argue it’s the only flaw in the market economy which is why they justify government intervention.
So the cold hard fact re Tova O’Brien, Duncan Garner and company is they simply weren’t good enough at their trade, thus their show’s closure.
In the recession ahead watch numerous builders and property developers in particular go over in droves. Their failures will reflect the system working, or, as accurately said by Warren Buffett, “when the economic tide goes out it exposes the naked bathers,” which is as it should be.
Sir Bob Jones is a renowned author, columnist , property investor, and former politician, who blogs at No Punches Pulled HERE.
All of today’s great multi-billion fortunes, such as with Musk, stem from innovation rather than the possession of capital.
The mid-19th century advent of the German devised limited liability company brought about a huge economic expansion as it allowed the market economy to flourish. Hitherto innovative economic activity was largely the domain of a wealthy small faction.
The limited liability company structure was also economically democratic in opening up participation to everybody without fear of being wiped out and not just the domain of the already wealthy.
Another aspect of the lively market economy is the misunderstanding regarding constant company collapses. If these didn’t occur then it would reflect a failure in the economy slipping back to a capitalist monopolistic situation market.
It’s why all western governments are hyperactive in intervening whenever a monopolistic situation arises albeit admittedly through their success
Economic theorists argue it’s the only flaw in the market economy which is why they justify government intervention.
So the cold hard fact re Tova O’Brien, Duncan Garner and company is they simply weren’t good enough at their trade, thus their show’s closure.
In the recession ahead watch numerous builders and property developers in particular go over in droves. Their failures will reflect the system working, or, as accurately said by Warren Buffett, “when the economic tide goes out it exposes the naked bathers,” which is as it should be.
Sir Bob Jones is a renowned author, columnist , property investor, and former politician, who blogs at No Punches Pulled HERE.
5 comments:
It's like a good purge isn't it? Something ya just gotta do.
It’s one end of the competition spectrum. Yet competition authorities only like the successful bit as long as not too successful. For example Innovation is encouraged as long as it is not too successful. So they play with the competitive environment and distort it. And when it all fails it’s because - they say - competition hasn’t worked. Try working that one out.
They were woke then they were broke. Oh dear, how sad.
Capitalism is just another weasel word that can be used as a label to dismiss any person with whom you do not agree. There are many of them:
Criticise the current Maorification policy of the govt - you are a racist.
Object to having Maori culture jammed down your throat - white supremacist.
Laugh at the clowns in the parliament house circus - culturally insensitive.
Once Communist was a cover-all word used against anyone who questioned the politically correct policies of authorities. This is seldom used now because the range of labels that can be used to dismiss those who dare to think for themselves is limitless. Words are cheap so maybe we are moving up to the next level where thugs can shut down free speech while those responsible for law and order look the other way. We saw how this worked in Nazi Germany.
What we all have a tendency to forget , is , capitalism represents freedom . Choos to develop something innovative and marketable , chances are it will be profitable . Develop an innovative product that nobody wants , and you go broke . Its what a free market is all about . Do something different that the public responds favouribly to , and you have a winner . Start a kapa haka school for the handicapped , and chances are you will go bust ! Include it in a credit plus school curiculum , and it becomes popular : BUT , not profitable or popular with the general public . Therefore , if it is NOT a govt service provided by the govt , it cant be right . The govt is there to provide services and rules to protect and to provide a service that people need . NOT to make a profir at the peoples expense : (NZ Post ? )
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