Thursday, March 19, 2020

Karl's Understanding of Economics Was Shabby.

Let us remember that economies are flexible - elastic even - and there is no actual 'pie' to share out. You know, 'the rich get a big share and the little man gets crumbs?'
Economic growth is the issue. If an economy stagnates - which it always will under socialism - you end up with a marxian, self-fulfilling prophecy.
It is a fallacy to believe that riches create poverty. Riches in a nation which stagnates do certainly add to the problem but in a liberal, capitalist structure ie) the current western world, this is far from the case.
If socialist nations were successful, you may well have thought, "Ah, yes. Shares of a pie." But they aren't and so the pie myth is largely debunked, although, to be fair, any mal-run nation may well revert to having 'a pie problem'.

Birdie.