Announcement

Collapse
No announcement yet.

Is the global economy zero sum?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Is the global economy zero sum?

    What's the global economy's net balance?

    Are not all liabilities perfectly balanced by assets, so the net is exactly zero?

  • #2
    Originally posted by W*GS View Post
    What's the global economy's net balance?

    Are not all liabilities perfectly balanced by assets, so the net is exactly zero?
    This is so discredited I can't believe people even entertain this as an idea. Add basic economics to the list of things schools need to do better at.

    Comment


    • #3
      Originally posted by BroncoBeavis View Post

      This is so discredited I can't believe people even entertain this as an idea. Add basic economics to the list of things schools need to do better at.
      https://www.povertycure.org/learn/is...ro-sum-fallacy

      One example they give:

      Wealth is produced when creative human beings devise new or more efficient ways to meet the wants and needs of others. The invention of the internal combustion engine, for example, combined with technology for extracting and refining crude oil, turned a previously worthless, sticky substance, into an immensely valuable resource, “black gold.” Its use, in turn, enabled people around the globe to travel and deliver goods farther, more quickly and more economically than ever before.

      Such improvements have allowed the world’s population to grow exponentially while simultaneously decreasing the proportion of that population living in poverty. This could not have been possible if global wealth were a zero-sum game.
      Where's the accounting for anthropogenic climate change and all the other damage?

      Comment


      • #4
        Originally posted by W*GS View Post

        https://www.povertycure.org/learn/is...ro-sum-fallacy

        One example they give:



        Where's the accounting for anthropogenic climate change and all the other damage?
        Another example of how any kind of zero-sum view of macroeconomics falls apart.

        What has more economic value... the climate of today, or next century, or the climate of 9,000 years ago when it was warmer...

        or a few thousand years earlier, when it was 11 degrees cooler than today?

        How do you assign a value to that? I can assure you the ice age economy was much less dynamic. 😀

        Comment


        • #5
          Originally posted by BroncoBeavis View Post

          Another example of how any kind of zero-sum view of macroeconomics falls apart.

          What has more economic value... the climate of today, or next century, or the climate of 9,000 years ago when it was warmer...

          or a few thousand years earlier, when it was 11 degrees cooler than today?

          How do you assign a value to that? I can assure you the ice age economy was much less dynamic. 😀
          Economics pretends that treating our air, water and land as infinite sewers has zero cost. An amazingly colossal error.

          Once those costs are added in, what happens to the global economy's balance? Is it still positive?

          Comment


          • #6
            For every winner, there has to be a loser. I’m waiting for someone to prove me wrong on that.

            Comment

            Working...
            X