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How we can fix the economy and help both the rich and the poor at once
You need to understand the difference between accounting profit and economic profit. If I have two choices for my $1 million, and one of them is investing in my business, and another is investing it in a one-year Treasury bond, I haven't really made an economic profit if my business doesn't... -
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How we can fix the economy and help both the rich and the poor at once
Creditors do not have a right to any appreciation in the company's value. Shareholders do. -
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How we can fix the economy and help both the rich and the poor at once
A debt legally requires the issuer to repay it. Equity does not. Go look up the difference between stocks and bonds. Those who own equity are owners.Owners are investors. -
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How we can fix the economy and help both the rich and the poor at once
In case you don't realize, companies only issue shares or debt to fund startup or expansion. Any company that constantly requires new capital to operate is likely a Ponzi scheme. -
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How we can fix the economy and help both the rich and the poor at once
Selling shares is not issuing debt! -
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How we can fix the economy and help both the rich and the poor at once
Also, inputs equalling outputs is the textbook definition of a zero-sum game. No wealth or value is being created, things are just being shuffled around. Selling shares doesn't mean you are going into debt, because you have no requirement to pay the money back. -
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How we can fix the economy and help both the rich and the poor at once
Companies prefer to issue shares rather than bonds because shares are equity and don't require a company to pay interest. Equity is cheaper than debt. Issuing shares is how companies get money to fund their operations. I know of plenty of companies who treat their employees well because they... -
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How we can fix the economy and help both the rich and the poor at once
It encourages people to develop marginal areas. The value of land only increases if there's more demand for the land. -
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How we can fix the economy and help both the rich and the poor at once
You do realize most executive compensation isn't cash, it's stock and stock options. No, the reason companies want growth is because if a company doesn't grow it's deemed to not be operating efficiently. They are responsible to their shareholders, not their employees. Employees are free to buy... -
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Why does China not see how their economic strategy will fail?
What do you think would happen if we stopped buying their exports or their currency fell so low that they could no longer import raw materials? China's economic growth is unsustainable. -
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How we can fix the economy and help both the rich and the poor at once
Once again, hurting the successful rich people doesn't help the poor. Don't penalize people for being successful. You don't want to limit profits. Companies with more money can spend more on benefits. Protectionism is bad for everyone. If a company can get it's products made cheaper in China... -
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Why does China not see how their economic strategy will fail?
Citation please. Yeah, if they do that there will be a great amount of investment into China. That will result in the renminbi's appreciation, which is something they absolutely do not want. And if it's a secret hoard, how do you know about it? -
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How we can fix the economy and help both the rich and the poor at once
Also, you must have been a very poor entrepreneur if your factory didn't make enough revenue to cover the land value tax. -
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How we can fix the economy and help both the rich and the poor at once
If I were you, I would've sold that land, not keep it. Independent assessors will assess the land value. -
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Why does China not see how their economic strategy will fail?
We've gone OT, I think. -
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Why does China not see how their economic strategy will fail?
China is completely dependent on us buying their exports to survive. If we either stop buying stuff from them or their currency appreciates, they're dead in the water. -
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Why does China not see how their economic strategy will fail?
China is so old that they have found Roman coins there. China is the oldest continuously existing country in the world after Iran. China has always been a nation turmoiled in bloody civil war when it didn't have a strong national leader. If the current government fails... -
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Why does China not see how their economic strategy will fail?
People act like us owing money to China is a bad thing for us. No, it's a good thing. The reason China buys our Treasuries is to prop up our currency against theirs, so they can continue to provide us with cheap imports. If we were to pay that debt off, the renminbi would appreciate, which would... -
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Why does China not see how their economic strategy will fail?
Look up Den Xiaoping's market reforms. -
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Why does China not see how their economic strategy will fail?
Why does China not see how their economic strategy will fail? China's economy is heavily based on exports, but at the same time they refuse to let their currency appreciate. This will lead to several problems: 1. Inflation, since huge amounts of renminbi are both received from exports, and...