Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
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Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#2I have a theoretical question. At what point does capitalism become the other side of the coin from communism.
Like there's communism which is centralized planning and the state owning the means of production.
Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy.
What happens when a capital accumulates in a smaller pool of folks who choose how to allocate those resources. Silicon Valley isn't responding to demand, it's essentially centrally planning where to assign resources to create demand.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#3I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
The demand signals never allocated the resources, a small number of people always did. Those people react to the demand signals (and they still do).
IMO a more important question is: what happens when the market power of a segment of society grows much greater than the rest? In a "K-shaped" economy, the top 20% have so much spending power (and even more future spending power) than their demand signals can overwhelm the rest. Then IMO the market won't respond to the demand signals of the bottom 20% and capitalism stops working for all. Add to that the possibility of AI automating more and more work and you have a system that only works for folks at the tops.
This isn't a resource allocation problem! it's a purchasing power distribution problem.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#4I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
The word you’re looking for, is Serfdom.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#5I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
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Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#6I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
I have a theory that this issue happens because we put money into the stock market for our pension. This creates a concentration of wealth/money into a relatively few organizations. I think money and wealth should be created more locally.
Of course, this is very idealistic and simplistic.
However, what did people think was going to happen when the common wisdom is to put your money into an index and then shut up? It simply cannot be true that putting money into the index means you win. There's cost somewhere, a parasite on the system, that is going to come due at some point.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#7I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
That is the entire Marx's Das Kapital. The main argument being free market will lead to concentration of power and then capitalism collaspe. He expanded on what he thought the not-capitalism could be.
Then Lenin concluded that if you will always have concentration of power and some folks doing centralized planning, it might well be the state.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#8I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
The same group of minds that were behind communism were also behind modern capitalism. It's no surprise that these systems produce the same net results - it was by design.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#9I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
Fun fact: Internally all corporations are organized by central planning
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#10I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
"....It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it."
- Adam Smith, final paragraph of Book I, An Inquiry into the Nature and Causes of the Wealth of Nations
Warning about companies being able to command regulation on themselves. We're far past anything Adam Smith would have thought was a good idea for how we organize capital and commerce.