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Free Market Capitalism has failed. Is it time for Capped Capitalism?

 
Cimi Pax
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10/15/2008 11:06 PM
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Free Market Capitalism has failed. Is it time for Capped Capitalism?
What if corporations could only make a maximum of 10% profit? And shareholders could only make a maximum of 10% dividends?

The rest has to be re-invested in the business.

Greed is bad. Time to slap it down.
Anonymous Coward
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10/15/2008 11:07 PM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
What if corporations could only make a maximum of 10% profit? And shareholders could only make a maximum of 10% dividends?

The rest has to be re-invested in the business.

Greed is bad. Time to slap it down.
 Quoting: Cimi Pax


Check into the "law of unintended consequences", it works in both cases.
Cimi Pax  (OP)

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10/16/2008 12:58 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
C'mon people. I'm not talking about Socialism.

Consider, capitalism is like a zoo. Some of the animals are harmless, others will bite your head off, kill everything and still want to be looked after. But that's when you don't lock the cages.

We need to get everyone back inside their enclosures and open up the zoo again, cages locked this time.

All animals are not equal. Let's treat them with the respect they deserve.
Cimi Pax  (OP)

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10/16/2008 08:13 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Check into the "law of unintended consequences", it works in both cases.
 Quoting: Anonymous Coward 473983


Thanks. I had a look. I hear business people talk about negatives on the upside and positives on the downside. Unintented consequences sounds kind of similar, but on a bigger scale.

I'm not an economist (no, really), so would love some debate on Capped Capitalism as a concept: a trade off between incentive and moderation?
FAR

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United Kingdom
10/16/2008 08:23 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
How do I'slamic markets work?
Read - for thy sustainer is the most bountiful one, who has taught the use of the pen, taught man what he did not know!
Nay verily man becomes grossly overweening, whenever he believes himself to be self-sufficient: for behold unto thy sustainer all must return.

Quran 96:3-8

[link to www.islamicity.com]
__________
"Investors must look at this situation as a portfolio opportunity. If you have some extra land (condo developers and house flippers, listen closely), grow a vegetable garden, if you are ambitious, raise some sheep and cows, they will come in handy".
__________
How we got here: [link to www.hundredyearlie.com]
Cure: [link to www.youtube.com]
__________
Plasma aliens: [link to www.plasmametaphysics.com]
__________
Were your ancestors pedophiles? [link to www.youtube.com]
__________
[link to www.terrorism-illuminati.com]
Cimi Pax  (OP)

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10/16/2008 08:36 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
I think this kind of thing is called Managed Capitalism.

LinK: [link to www.businessweek.com]


Imagine an America where Big Business and Big Government work closely together. Tough regulation prevents banks, investment banks, insurance companies, securities dealers, thrifts, and other financial institutions from competing with one another for business. Barriers at the border restrain global competition and immigration. And unions wield power within companies and in the corridors of Washington. Surely, such "managed capitalism" is a recipe for economic stagnation, no?

Hardly. The U.S. economy, wages, and incomes flourished from 1948 to 1973, a period of managed capitalism when a rising tide did lift all boats. The modern middle class came of age during the 1950s and '60s. But those days are long gone now—a fact lamented by Robert Kuttner, co-editor of The American Prospect magazine and a former BusinessWeek columnist, in The Squandering of America: How the Failure of Our Politics Undermines Our Prosperity.

This volume is unapologetically and proudly progressive. Still, it isn't yet another screed proclaiming the decline of the world, or at least of the country, during the Bush years. Instead, it's a deeply sober, highly analytical, historically informed look at economic, financial, and political trends over the past half-century. (Little wonder it's also something of a slog to wade through.) Kuttner is an intelligent voice for that wing of the Democratic Party eager to reject bipartisanship, middle-ground politics, open borders, and the Washington Consensus and embrace a populist agenda that is anti-Wall Street, anti-free trade, anti-deregulation, and pro-union.

While the author favors managed capitalism, his bugaboos are Wall Street and the global capital markets. Kuttner has nothing good to say about modern finance. In his scenario, speculators hollow out companies for a quick buck, conspire to fleece investors, and make enormous bets through hedge funds that put the global financial system at risk. He blames a deregulated and unleashed financial sector for America's rise in inequality, a weakened public sector, the decline of labor, and the waning of citizen involvement. He agrees with John Maynard Keynes' famous statement that "when the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done."

The author's emphasis on how politics affects economic outcomes is spot-on. He's right that the rise in income inequality and job insecurity in recent decades has been greatly influenced by political power and political decisions. The trends he highlights are deeply disturbing, including the erosion of pension coverage and the swelling ranks of Americans without health insurance.

Yet his nostalgia for old economic ways and his deep distrust of Wall Street don't amount to a persuasive solution. Managed capitalism had more drawbacks than he admits. For instance, Kuttner downplays the devastating impact that inflation had on the system in the '70s. Perhaps more important, he glosses over how much the managers of Industrial America had become risk-averse as they lost market share and profits to Japanese, German, and other overseas rivals. Like them or not, it took innovators such as Rupert Murdoch, Craig McCaw, and Michael Milken to challenge a potentially catastrophic mindset.

To be sure, there's no shortage of abuse now, from Enron to subprime. Yet the capital markets remain a remarkable institution for communicating through price changes all kinds of information. The more pervasive the financial markets, the more investors will find and fund profitable ideas—and flee from failed management strategies. With the benefit of hindsight, it's also apparent that the financial markets' "shock absorbers" are one reason the 2001 recession was so shallow. The reverberations from the downturn in economic activity largely showed up in the global capital markets rather than in the real economy of jobs and incomes.

Kuttner has written a passionate broadside for restoring widespread prosperity to the middle class and reviving a dispirited democracy. That his argument isn't completely convincing doesn't mean his ideas aren't worth grappling with during the coming campaign for the White House.
Cimi Pax  (OP)

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10/16/2008 08:43 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
More stuff.

Capitalism 3.0 by Peter Barnes.

Link: [link to www.capitalism3.com]

Thus far I’ve argued that Capitalism 2.0—or surplus capitalism—has three tragic flaws: it devours nature, widens inequality, and fails to make us happier in the end. It behaves this way because it’s programmed to do so. Neither enlightened managers nor the occasional zealous regulator can make it behave much differently.

In this part of the book I advance a solution. The essence of it is to fix capitalism’s operating system by adding a commons sector to balance the corporate sector. The new sector would supply proxies for unrepresented stakeholders: future generations, pollutees, and nonhuman species. And it would offset the corporate sector’s negative externalities with positive externalities of comparable magnitude.

If the corporate sector devours nature, the commons sector would protect it. If the corporate sector widens inequality, the commons sector would reduce it. If the corporate sector turns us into self-obsessed consumers, the commons sector would reconnect us to nature, community, and culture. All this would happen automatically once the commons sector is set up. The result would be a balanced economy that gives us the best of both sectors and the worst of neither.

To be sure, building an economic sector from scratch is a formidable task. Fortunately, the commons sector needn’t be built from scratch; it has an enormous potential asset base just waiting to be claimed. That asset base is the commons itself, the gifts of nature and society we inherit and create together. These gifts are worth more than all private assets combined. It’s the job of the commons sector to organize and protect these gifts, and by so doing, to save capitalism from itself.

Common wealth is like the dark matter of the economic universe—it’s everywhere, but we don’t see it. One reason we don’t see it is that much of it is, literally, invisible. Who can spot the air, an aquifer, or the social trust that underlies financial markets? The more relevant reason is our own blindness: the only economic matter we notice is the kind that glistens with dollar signs. We ignore common wealth because it lacks price tags and property rights.

It’s time to notice our shared gifts. Not only that, it’s time to name them, protect them, and organize them. One way to do this is through common property rights.

I recognize that, for some, turning common wealth into any kind of property is a sacrilege. As Chief Seattle put it, “How can you buy or sell the sky, the warmth of the land?” I empathize deeply with this sentiment. However, I’ve come to believe that it’s more disrespectful of the sky to pollute it without limit or payment than to turn it into common property held in trust for future generations. Hence, I favor propertization, but not privatization.
Anonymous Coward
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10/16/2008 08:54 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Capitalism hasn't failed, regulation has failed miserably. When banks have been able to leverage 60x of their capital, and something bad happens (subprime) the whole house of cards can collapse.

Capping dividend at 10% will hinder market mechanisms - what's the incentive for corporations to innovate and to go pass the 10%?

The solution is better regulation and obviously the role of the rating bureaus S&P,Moody's and Fitch must looked at.
D. SMith
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10/16/2008 08:55 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
I would prefer that profits not be the target,because then you are targeting growth. IF something is not growing it is dieing. I believe we should regulate "stock markets' by eliminating 'hedge funds' 'derivatives' 'short selling' and any other type of investing that does not support actual growth activity, this would eliminate any 'casino' style investing that profits solely 'shuffling of money'.

I would do away with most if not all 'insurance', since they do little but drive up the cost of all business activities. They siphon off large sums of money that could be used in investment and do little to promote any real growth. Risk is part of business when risk is there the investor is prudent and the business dynamics are conservative.
Anonymous Coward
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10/16/2008 09:02 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Here is a solution, how about making it mandatory for banks to publish their leveraging policy? That way the public knows the risks and can decide for themselves where to put their money. Personally I would put my savings at a bank that has leveraged 12x rather than 60x.
Anonymous Coward
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10/16/2008 09:03 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Read The Creature From Jekyll Island.

Our banking system is not based on Free Market Capitalism.

It is impossible for a FREE MARKET to fail. However a free market may not achieve the rational and human objectives of the human race.
Cimi Pax  (OP)

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10/16/2008 09:04 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Capitalism hasn't failed, regulation has failed miserably. When banks have been able to leverage 60x of their capital, and something bad happens (subprime) the whole house of cards can collapse.
 Quoting: Anonymous Coward 520867


I didn't say Capitalism has failed, but Free Market Capitalism has.

Capping dividend at 10% will hinder market mechanisms - what's the incentive for corporations to innovate and to go pass the 10%?
 Quoting: Anonymous Coward 520867


Hey, 10% is a pretty good. It's healthy interest and very healthy growth. The incentive would be to make sure you stayed at the 10%. Innovative companies could come along and take away business if you remained stagnant, so you would still need to be progessive. Shareholders would jump ship very quickly if you didn't make the 10% max for dividends.

The solution is better regulation and obviously the role of the rating bureaus S&P,Moody's and Fitch must looked at.
 Quoting: Anonymous Coward 520867


What's to stop these regulators to become corrupt again and again. These animals can't be trusted.
Anonymous Coward
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10/16/2008 09:06 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Read The Creature From Jekyll Island.

Our banking system is not based on Free Market Capitalism.

It is impossible for a FREE MARKET to fail. However a free market may not achieve the rational and human objectives of the human race.
 Quoting: Anonymous Coward 527847

Actually that's not true. Free markets can fail, there are many examples of imperfections in economics that can make free markets fail.
Jomama

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10/16/2008 09:13 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
The unseen by most:

"Credit expansion is the governments' foremost
tool in their struggle against the free market.
In their hands it is the magic wand designed to
conjure away the scarcity of capital goods, to
lower the rate of interest or to abolish it
altogether, to finance lavish government
spending, to expropriate the capitalists, to
contrive everlasting booms, and to make everybody
prosperous." - Ludwig von Mises

Now many are getting an idea where that will end.

Bankruptcy for everyone:

[link to djomama.blogspot.com]
to herd or not to herd
[link to djomama.blogspot.com]
Cimi Pax  (OP)

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10/16/2008 09:14 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
I would prefer that profits not be the target,because then you are targeting growth. IF something is not growing it is dieing. I believe we should regulate "stock markets' by eliminating 'hedge funds' 'derivatives' 'short selling' and any other type of investing that does not support actual growth activity, this would eliminate any 'casino' style investing that profits solely 'shuffling of money'.

I would do away with most if not all 'insurance', since they do little but drive up the cost of all business activities. They siphon off large sums of money that could be used in investment and do little to promote any real growth. Risk is part of business when risk is there the investor is prudent and the business dynamics are conservative.
 Quoting: D. SMith 436409


You can look with 20/20 and see that regulators, banks and traders have bent the rules, and kept on doing it, even after the toys started to break.

If we make cautious, business friendly changes to regulation now, in twenty years we will be in this same situation. We must learn to learn. The 1987 crash should have been the wake-up call.

IMHO I think there needs to be systemic change. Sure, in a hundred years it will become eroded and corrupt, but if we don't do something profound then our children will suffer this all over again, rather than our great, great grandchildren.

Trees only grow to their natural limit, but they are not dying.

Isn't insurance is a function of insecurity. A human condition?
Anonymous Coward
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10/16/2008 09:16 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Capitalism hasn't failed, regulation has failed miserably. When banks have been able to leverage 60x of their capital, and something bad happens (subprime) the whole house of cards can collapse.

I didn't say Capitalism has failed, but Free Market Capitalism has.

Capping dividend at 10% will hinder market mechanisms - what's the incentive for corporations to innovate and to go pass the 10%?

Hey, 10% is a pretty good. It's healthy interest and very healthy growth. The incentive would be to make sure you stayed at the 10%. Innovative companies could come along and take away business if you remained stagnant, so you would still need to be progessive. Shareholders would jump ship very quickly if you didn't make the 10% max for dividends.

The solution is better regulation and obviously the role of the rating bureaus S&P,Moody's and Fitch must looked at.


What's to stop these regulators to become corrupt again and again. These animals can't be trusted.
 Quoting: Cimi Pax

If you cap dividend at 10%, there is less motivation to innovate. Some projects have expected returns of more than 10% but bundled with higher risks.

E.g. the Boeing 747 was a win-lose situation for Boeing. If the airplane failed Boeing would have gone bankrupt, if the airplane was a success it would have given them the market leadership and enormous earnings. The Boeing management believed very much in the 747 and took the risks. If you capped earnings at 10%, the Boeing 747 would never have been developed: why take so much risks when a regular airplane can generate profit of 10%?

I agree that the ratings bureaus can become corrupt or make bad ratings again. But that's why I propose better international regulations and mandatory transparancy ,the like that we can already see in standardized accounting rules for CPA's (Certified Public Accountants) around the world.
Anonymous Coward
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10/16/2008 09:24 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Check into the "law of unintended consequences", it works in both cases.


Thanks. I had a look. I hear business people talk about negatives on the upside and positives on the downside. Unintented consequences sounds kind of similar, but on a bigger scale.

I'm not an economist (no, really), so would love some debate on Capped Capitalism as a concept: a trade off between incentive and moderation?
 Quoting: Cimi Pax


Many of the other replies have already begun hinting at the problems with capping. Here are some quotes from Wikipedia:

"Discussions of unintended consequences usually refer to the situation of perverse results. This situation often arises because a policy has a perverse incentive and causes actions contrary to what is desired."

and:

"Perverse results

* The Streisand Effect occurs when an attempt to censor or remove a certain piece of information (such as a photograph, document, etc.) instead causes the information to become widely known and distributed. The fact that a piece of information is being restricted assigns to it a previously nonexistent value in the eyes of the public."

I included the second quote because it shows quite clearly what a cap of any kind actually does: restriction assigns a valude previously nonexistent. Translation, if we place a 10% cap of some kind then a "black market" is created for any type of opportunity that does better. This is like proposing economic prohibition - surely a bad idea....
Anonymous Coward
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10/16/2008 09:28 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Check into the "law of unintended consequences", it works in both cases.


Thanks. I had a look. I hear business people talk about negatives on the upside and positives on the downside. Unintented consequences sounds kind of similar, but on a bigger scale.

I'm not an economist (no, really), so would love some debate on Capped Capitalism as a concept: a trade off between incentive and moderation?


Many of the other replies have already begun hinting at the problems with capping. Here are some quotes from Wikipedia:

"Discussions of unintended consequences usually refer to the situation of perverse results. This situation often arises because a policy has a perverse incentive and causes actions contrary to what is desired."

and:

"Perverse results

* The Streisand Effect occurs when an attempt to censor or remove a certain piece of information (such as a photograph, document, etc.) instead causes the information to become widely known and distributed. The fact that a piece of information is being restricted assigns to it a previously nonexistent value in the eyes of the public."

I included the second quote because it shows quite clearly what a cap of any kind actually does: restriction assigns a valude previously nonexistent. Translation, if we place a 10% cap of some kind then a "black market" is created for any type of opportunity that does better. This is like proposing economic prohibition - surely a bad idea....
 Quoting: Anonymous Coward 473983


True! The emerging of black markets is definately another problem when we cap dividends.
Cimi Pax  (OP)

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10/16/2008 09:34 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
If you cap dividend at 10%, there is less motivation to innovate. Some projects have expected returns of more than 10% but bundled with higher risks.

E.g. the Boeing 747 was a win-lose situation for Boeing. If the airplane failed Boeing would have gone bankrupt, if the airplane was a success it would have given them the market leadership and enormous earnings. The Boeing management believed very much in the 747 and took the risks. If you capped earnings at 10%, the Boeing 747 would never have been developed: why take so much risks when a regular airplane can generate profit of 10%?
 Quoting: Anonymous Coward 520867


I see your point. But if Boeing only had to pay a maximun dividend of 10% to their shareholders then they could put all the rest back into their business. Then there wouldn't be such a risk and they would have more capital so wouldn't need to borrow so heavily when it's time to upgrade.

Ultimately though, when you consider our finite resources and such, haven't we innovated enough? Life is pretty comfortable, or it was.
Cimi Pax  (OP)

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10/16/2008 09:36 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Translation, if we place a 10% cap of some kind then a "black market" is created for any type of opportunity that does better. This is like proposing economic prohibition - surely a bad idea....
 Quoting: Anonymous Coward 473983


Ouch.
D. SMith
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10/16/2008 09:36 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
I would prefer that profits not be the target,because then you are targeting growth. IF something is not growing it is dieing. I believe we should regulate "stock markets' by eliminating 'hedge funds' 'derivatives' 'short selling' and any other type of investing that does not support actual growth activity, this would eliminate any 'casino' style investing that profits solely 'shuffling of money'.

I would do away with most if not all 'insurance', since they do little but drive up the cost of all business activities. They siphon off large sums of money that could be used in investment and do little to promote any real growth. Risk is part of business when risk is there the investor is prudent and the business dynamics are conservative.


You can look with 20/20 and see that regulators, banks and traders have bent the rules, and kept on doing it, even after the toys started to break.

If we make cautious, business friendly changes to regulation now, in twenty years we will be in this same situation. We must learn to learn. The 1987 crash should have been the wake-up call.

IMHO I think there needs to be systemic change. Sure, in a hundred years it will become eroded and corrupt, but if we don't do something profound then our children will suffer this all over again, rather than our great, great grandchildren.

Trees only grow to their natural limit, but they are not dying.

Isn't insurance is a function of insecurity. A human condition?
 Quoting: Cimi Pax

You can argue that a tree reaches its full height at a certain point, but the tree is in constant change and flux, dropping and gaining leaves and branches to fit the weather conditions and the dynamic tensions of existance, so growth it constant. I see the economy as similar.

I believe no one ever gains by taking away incentive. I also believe no system can be developed that is 'abuse proof. In keeping with those ideas i think no one can create a system that is 'above' the human condition. Of course I understand there is always a part of ourselves that wants to keep future generations from making the same mistakes we made, but this can not really be accomplished through systems and legislation this can only be accomplished through changes of consciousness.
I think Drastic and sudden changes in systems create unimaginable pain and suffering, at best they cause great losses in confidence that take generations to over come at worse total collapse and chaos.
We can still avoid much suffering if we are prudent, how much we can avoid depends entirely on us as a people. In gardening terms, we should make changes to the system, but they should be ones that promote growth and stimulus, we need a fence for the system to vine and cling, and for allowing pruning when necessary, not walls that block the space and light for potential growth.
Cimi Pax  (OP)

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10/16/2008 09:49 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Of course I understand there is always a part of ourselves that wants to keep future generations from making the same mistakes we made, but this can not really be accomplished through systems and legislation this can only be accomplished through changes of consciousness.
 Quoting: D. SMith 436409


I guess that's why most of us are on GLP. The horrid realisation that we are currently our own worst enemy.


I think Drastic and sudden changes in systems create unimaginable pain and suffering, at best they cause great losses in confidence that take generations to over come at worse total collapse and chaos.
We can still avoid much suffering if we are prudent, how much we can avoid depends entirely on us as a people. In gardening terms, we should make changes to the system, but they should be ones that promote growth and stimulus, we need a fence for the system to vine and cling, and for allowing pruning when necessary, not walls that block the space and light for potential growth.
 Quoting: D. SMith 436409


I can see how this is a wise path if done with hard, thorough action, but I can just see the stick being whittled too quickly by compromise, false optimism and incompetence.
D. SMith
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10/16/2008 10:10 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
I can see how this is a wise path if done with hard, thorough action, but I can just see the stick being whittled too quickly by compromise, false optimism and incompetence.
 Quoting: Cimi Pax


This is what we all fear, we also fear that we may have found about the problem way to late. Further exacerbating the situation is most of us instinctively know that back room meetings with 'sworn to secrecy' solutions, seldom work, since eventually what is done in darkness must be seen in the light, and what needs to be be seeded in secret is in most cases duplicitous by nature.
Cimi Pax  (OP)

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10/16/2008 10:15 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Here is a solution, how about making it mandatory for banks to publish their leveraging policy? That way the public knows the risks and can decide for themselves where to put their money. Personally I would put my savings at a bank that has leveraged 12x rather than 60x.
 Quoting: Anonymous Coward 520867


Transparency. From the darkness into the light.
Anonymous Coward
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10/16/2008 10:17 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
This country hasn't been purely Capitalistic in any of our lifetimes!

This issue has been completely obfuscated.

Central Bank = Federal Reserve = NOT capitalism
Anonymous Coward
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10/16/2008 10:27 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
This country hasn't been purely Capitalistic in any of our lifetimes!

This issue has been completely obfuscated.

Central Bank = Federal Reserve = NOT capitalism
 Quoting: Anonymous Coward 522719


The people who run the economy don't play by the rules of capitalism. That much is abundantly clear by their actions of late. But, do the referees of anything play by the rules of the game?

On the other hand, the people who make an honest living in this country really do have to play by the rules of capitalism.

So, I see more of a dichotomy. Your view is very common here on GLP but ignores this aspect of our circumstances.
Anonymouse
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10/16/2008 10:30 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
What if corporations could only make a maximum of 10% profit? And shareholders could only make a maximum of 10% dividends?

The rest has to be re-invested in the business.

Greed is bad. Time to slap it down.
 Quoting: Cimi Pax


I think this is the type of economic regulations we need to have in a free country, and long overdue. Another similar idea would be to require all businesses to be structured based on profit sharing. So, for example, everyone who works for the company gets a share of the profits, and there is a cap that those at the top cannot get more than a fair share of the pie.

Aggregation of wealth into the hands of the few destroys free societies, and there is no reason to tolerate it. An entrepreneur can always say that without his work the company would not exist, but society can always shout back that without it's work the CEO would be living in a cave eating deer shit to avoid starvation and fighting with the "Thog brothers" from the next cave over for control of the local women, so that argument is moot.
Jomama

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10/16/2008 11:20 AM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Greed is bad. Time to slap it down.

Let's make it illegal.


lmao
to herd or not to herd
[link to djomama.blogspot.com]
Cimi Pax  (OP)

User ID: 482816
Australia
10/16/2008 06:20 PM
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Re: Free Market Capitalism has failed. Is it time for Capped Capitalism?
Translation, if we place a 10% cap of some kind then a "black market" is created for any type of opportunity that does better. This is like proposing economic prohibition - surely a bad idea....
 Quoting: Anonymous Coward 473983


Sure, not great, not ideal. But 10% is still a good return. And illegal is illegal, lots of people wouldn't touch the blackmarket.

Of course, there will always be people who will want to get rich quick. But they will do illegal stuff anyway.

I'd go grow/sell drugs if I wanted to make it quick.





GLP