Quote:
Originally Posted by spence
And about pie. I don't buy the infinite pie thing. The one physics class I had in college taught me there was a finite amount of energy in the universe.
Sure economic growth can lift all boats (not equally mind you) but the reality is that there's organic growth and the transfer of wealth. A lot of our economy, increasingly in fact, is based on transfer where wealth is not created as much as siphoned off. This is indeed a more finite equation, relative to the economic conditions at the moment.
The point being, that if resources were unlimited you could potentially sustain organic growth and eliminate the pie construct. But in the real world there are constraints. If you don't have growth, or if the benefits from growth aren't shared you have an exploding pie.
-spence
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"And about pie. I don't buy the infinite pie thing."
That's maybe the most demonstrably false thing you have ever said. GDP changes, Spence. It's a lot higher now than it was in 1950, because the economy (i.e., aggregate wealth) increased over time. Good lord, I'd love to know in what capacity you work in business.
"A lot of our economy, increasingly in fact, is based on transfer where wealth is not created as much as siphoned off."
Siphoning off is what happens when the government confiscates wealth, which is what you support. Voluntary transactions almost always increase wealth.
Wow...