When did Scrooge become a role model?
papers.ssrn.com
When did Scrooge become a role model?
1–10 of 21 posts
Re: When did Scrooge become a role model?
#2Complete and utter trash.
"Returning to the original measuring stick, let us see if society is productive. Bashful is working to make ice cream. But Scrooge is not productive. If the venture is successful, then Scrooge will get money for nothing. He has gotten his money “to work for him.”23 In fact that is not what is happening. Money cannot work. Bashful is doing all the work and Scrooge is taking some of the rewards of Bashful’s labor. Is this fair? In history, this arrangement is thought to be fair because it is an equity investment.24"
This person doesn't have the faintest idea of what investment means. Scrooge didn't do nothing, he delayed his consumption -- he worked in essence for free, until his investment has returns.
In general when investing you're improving efficiencies for instance buying a faster assembly line. This allows you to make the more goods for less price thus customers are benefited and the investors take a return. It's a win win situation.
Re: When did Scrooge become a role model?
#3Complete and utter trash. "Returning to the original measuring stick, let us see if society is productive. Bashful is working to make ice cream. But Scrooge is not productive. If the venture is successful, then Scrooge will get money for nothing. He has gotten his money “to work for him.”23 In fact that is not what is happening. Money cannot work. Bashful is doing all the work and Scrooge is taking some of the reward…
I suspect that you didn't read to the end of the paper. They're using the 'seven dwarves and scrooge' example in the context of sovereign debt. They aren't criticising individuals for saving and investing.
The entire thesis is that China hoarding large surpluses is essentially unsustainable and damaging to global productivity. This is probably true, unless China is willing to accept IOUs (which is what US bonds are, essentially) ad infinitum.
Re: When did Scrooge become a role model?
#4Complete and utter trash. "Returning to the original measuring stick, let us see if society is productive. Bashful is working to make ice cream. But Scrooge is not productive. If the venture is successful, then Scrooge will get money for nothing. He has gotten his money “to work for him.”23 In fact that is not what is happening. Money cannot work. Bashful is doing all the work and Scrooge is taking some of the reward…
I suspect that you didn't read to the end of the paper. They're using the 'seven dwarves and scrooge' example in the context of sovereign debt. They aren't criticising individuals for saving and investing. The entire thesis is that China hoarding large surpluses is essentially unsustainable and damaging to global productivity. This is probably true, unless China is willing to accept IOUs (which is what US bonds are,…
I don't agree that China is hurting the global economy in fact I think they are making the west richer by stealing from their own people. You can morally object to that, but whenever a country subsidizes exports they are improving the lot of foreigners at the expense of their own citizens.
Re: When did Scrooge become a role model?
#5Earlier quoted context omitted.
I suspect that you didn't read to the end of the paper. They're using the 'seven dwarves and scrooge' example in the context of sovereign debt. They aren't criticising individuals for saving and investing. The entire thesis is that China hoarding large surpluses is essentially unsustainable and damaging to global productivity. This is probably true, unless China is willing to accept IOUs (which is what US bonds are,…
I don't agree that China is hurting the global economy in fact I think they are making the west richer by stealing from their own people. You can morally object to that, but whenever a country subsidizes exports they are improving the lot of foreigners at the expense of their own citizens.
I suspect that China currency manipulation has reduced global economic efficiency. It's mostly second order effects ex: Cheap Chinese exports still require the same raw materials which drives up global commodities prices.
Now if China was growing faster than other nations have when they transitioned to "modern" economy's that would be one thing. But South Korea experienced similar growth rates when they where developing and the "end state" for China is an economy that looks like US/Germany/Japan etc. So IMO, discounting their goods is keeping their population poorer for longer and harming the world economy at the same time.
Re: When did Scrooge become a role model?
#6[deleted]
Re: When did Scrooge become a role model?
#7interesting read. However, the author does not account for inflationary or deflationary effects with respect to changes in the supply of money. Also the author seems to forget that our sovereign debt was created by reckless government spending at the expense of its taxpayers, for whom it shows no accountability to. Other countries who hold our debt obviously feel that our labor is overpriced. Wages will drop before they spend. Gotta love globalization!
Re: When did Scrooge become a role model?
#8Earlier quoted context omitted.
I don't agree that China is hurting the global economy in fact I think they are making the west richer by stealing from their own people. You can morally object to that, but whenever a country subsidizes exports they are improving the lot of foreigners at the expense of their own citizens.
I suspect that China currency manipulation has reduced global economic efficiency. It's mostly second order effects ex: Cheap Chinese exports still require the same raw materials which drives up global commodities prices. Now if China was growing faster than other nations have when they transitioned to "modern" economy's that would be one thing. But South Korea experienced similar growth rates when they where develop…
I agree it's keeping the economy poorer, but is it harming the world economy? People are getting goods at lower prices, that frees up more money for investment. So I'd say if anything it's improving the world economy. Once again, I feel the only objection is that it is unfair to chinese citizens because the are essentially being stolen from. As for you comment on 2nd order effects, I think that is incorrect -- China only competes on labor costs, they don't sell goods for less than the material costs. Now if you're saying that they can use less efficient (more wasteful) processes since the difference is made up in labor, I'll agree -- but I think they'll adopt the more efficient processes to increase their bottom line eventually.
Re: When did Scrooge become a role model?
#9Complete and utter trash. "Returning to the original measuring stick, let us see if society is productive. Bashful is working to make ice cream. But Scrooge is not productive. If the venture is successful, then Scrooge will get money for nothing. He has gotten his money “to work for him.”23 In fact that is not what is happening. Money cannot work. Bashful is doing all the work and Scrooge is taking some of the reward…
The problem with your analysis is that a business needs investors and customers to succeed. Excessive saving can harm an economy.
Re: When did Scrooge become a role model?
#10Complete and utter trash. "Returning to the original measuring stick, let us see if society is productive. Bashful is working to make ice cream. But Scrooge is not productive. If the venture is successful, then Scrooge will get money for nothing. He has gotten his money “to work for him.”23 In fact that is not what is happening. Money cannot work. Bashful is doing all the work and Scrooge is taking some of the reward…
Did you actually read the article? Hoarding 75% of the currency in an economy cannot, under any circumstance, be called "delayed consumption".
Before Scrooge, everyone earned its keep and got whatever he wanted. Life was good. It is true that not everybody have the same income or savings, but in general everyone was well fed and was able to buy whatever he needed. The savings where delayed consumption, you know... save $1 per day and by the end of the month you can hire two full time fellows for that home improvement project you had in mind.
Pre-Scrooge Dwarf Economy. Daily income = Avg: $12, Min: $9, Max: $15 Cost of living: $3 Disposable income = Avg: 75%, Min 67%, Max 80% Savings = Total: $16, Avg: $2.29 Population = 7 Employment = 100%
Now Scrooge comes. He hoards money for money's sake. He works in the dwarf economy full time, but only spends $4 per day for room and board. Eventually he holds all the money under his mattress and everybody is engaged in subsistence farming.
With-Scrooge Dwarf Economy. Daily income = Avg: $3.5, Min: $3, Max: $4 Cost of living: $3 Disposable income = Avg: 67%, Min 50%, Max 81% Savings = $72 ($75 - $3) Population = 8 Employment = 28%
Now, if you ask me, the Dwarfs are pretty stupid. They sit on their hands all day long... waiting for someone to "hire" them. If you think in a community of 8, this is nonsense. But if you think in a city of 8 million, then you are on to something. People can barely find a job. factories run below half capacity, the ones who are lucky enough to have some savings hold to them for dear life... just in case the things get even worse and they cannot earn some more. Eventually, people move into informal DIY economy with poor skills and substandard tools, Big Depression style.