Exegesis - Cap/Com-ist

[Kidlicious]

Flubber,

What a bunch of crap that post is. Let me ask it another way.

Suppose that the cost of the risk is equal to the risk premium. Why would anyone invest?

[Kontiki]

Originally posted by Kidicious

People should be paid piece work. I realize that's not always possible, but it is a lot of the time.

Ok, what about for the parts that you realize aren't possible? Let's say, for instance, teaching or medicine?

You will have to work.

Why? What happens if I don't?

[Flubber]

Originally posted by Kidicious
Let me ask that another way Flubber. Do you think the benefit of the risk premium should be equal to the cost of the risk, or more?

It appears to me to be the same question. See my previous answer where I question what these terms mean.


All I can say is you seem to think that capitalists just wave a magic wand and immensely profitable ventures appear. Thats just not the case. Why? Because if its immensely profitable, competitors appear or bid up the price.

[Kidlicious]

Originally posted by Kontiki


Ok, what about for the parts that you realize aren't possible? Let's say, for instance, teaching or medicine?

You can give teachers and doctors incentive. You can pay teachers for how much their students learn, an you can pay doctors for how many patients they treat, and how well they do.

Why? What happens if I don't?

What would you do if you didn't work. Bum?

[Flubber]

Originally posted by Kidicious
Flubber,

What a bunch of crap that post is. Let me ask it another way.

Suppose that the cost of the risk is equal to the risk premium. Why would anyone invest?

Why is reality always a "bunch of crap" to you ?? The example is real . Although the numbers are simplified thats the type of analysis you get from geologist geophysicists and the financial folks. So I ask you what is the "cost of the risk"?

[Kidlicious]

Originally posted by Flubber



It appears to me to be the same question. See my previous answer where I question what these terms mean.


All I can say is you seem to think that capitalists just wave a magic wand and immensely profitable ventures appear. Thats just not the case. Why? Because if its immensely profitable, competitors appear or bid up the price.

You are a businessman. Do you expect us to believe that you don't understand the terms 'risk cost' and 'risk premium'?

[Kidlicious]

Originally posted by GePap


Explotation is only an issue in the political sense. Shouldn't then the solution be political then, instead of economic?

I gave you a chance to change it.


Anyway, I don't understand why you want to seperate political and economical. They are really the same thing.

[Flubber]

Originally posted by Kidicious


You are a businessman. Do you expect us to believe that you don't understand the terms 'risk cost' and 'risk premium'?

I understand many tems but we do not use the term "risk cost". Also you have a tendency to define terms in your own way i.e. "exploitation" or "unfair". I tehrefore want to know what you mean . . . a reasonable request I would think.

I simply want to know what you mean. I have seen the term risk premium many times and in our business it means the expected rate of return required in order to justify investment at a given quantifiable risk.


Oh and I stand by my long post that you dismiss as a "bunch of crap". I ask that you address the problems outlined in it.

[Kontiki]

Originally posted by Kidicious

You can give teachers and doctors incentive. You can pay teachers for how much their students learn, an you can pay doctors for how many patients they treat, and how well they do.

So there are incentives in communism to work harder/better? I thought you just said there weren't? And monetary ones to boot?

What would you do if you didn't work. Bum?

Not sure what you mean here. What would I do with my free time? Or how would I earn money? What do I need money for? Is there no social safety net in communism?

[Flubber]

Originally posted by Kidicious


I gave you a chance to change it.


Anyway, I don't understand why you want to seperate political and economical. They are really the same thing.

Errr yes and no--- Economically its hard to show why the worker making 30 ducats an hour is exploited while the one making 20 ducats is not. It takes the politcal portion of your theories to make sense of that

[Flubber]

Originally posted by Kontiki


So there are incentives in communism to work harder/better? I thought you just said there weren't? And monetary ones to boot?

Probably just the typical kid inconsistency. When he gets tired of arguing a point he drops it until 200 posts go by and then picks up the other side.


Piecework eh?? So I can earn three times what my neighbor makes by working longer and harder .. . I'm sure kid will have some equalization method . . . perhaps we will make people rotate houses once every 6 months

[Kidlicious]

Originally posted by Flubber



I understand many tems but we do not use the term "risk cost". Also you have a tendency to define terms in your own way i.e. "exploitation" or "unfair". I tehrefore want to know what you mean . . . a reasonable request I would think.

I simply want to know what you mean. I have seen the term risk premium many times and in our business it means the expected rate of return required in order to justify investment at a given quantifiable risk.


Oh and I stand by my long post that you dismiss as a "bunch of crap". I ask that you address the problems outlined in it.

Risk cost is the product of the probability of loss and the potential loss. The premium is compensation for taking a risk.

[Kidlicious]

Originally posted by Kontiki
So there are incentives in communism to work harder/better? I thought you just said there weren't? And monetary ones to boot?

This is just my philosophy mind you. Yes I believe that people deserve compensation for working hard. I don't really consider that incentive. That's what they are owed.

Not sure what you mean here. What would I do with my free time? Or how would I earn money? What do I need money for? Is there no social safety net in communism?

You need money to buy things. If you don't have a job you recieve unemployment compensation, but the state finds you a job.

[Kidlicious]

Originally posted by Flubber
Piecework eh?? So I can earn three times what my neighbor makes by working longer and harder .. . I'm sure kid will have some equalization method . . . perhaps we will make people rotate houses once every 6 months

I propose that you be compensated with time off.

[Kidlicious]

Originally posted by Flubber



Errr yes and no--- Economically its hard to show why the worker making 30 ducats an hour is exploited while the one making 20 ducats is not. It takes the politcal portion of your theories to make sense of that

Actually economically is easy. Politically is hard.