DaVinci Posted January 27, 2017 Posted January 27, 2017 I think I already know some problems with this idea, but I'd like to hear some thoughts from those who are more knowledgable with economics. Why doesn't someone "restart" the economy? For example, a baker who makes and sells loaves of bread for, let's say, 10 cents a loaf. Obviously people would flock to that baker to get the same item for wayyyyy cheaper than they could get in the store. So the consumer being there wouldn't be an issue. I know the big problems would be the cost to the baker, but why couldn't they strike a deal with a wheat grower? Or open up a shop run with solar power? Or bake in wood fired ovens? The guy who supplies the bricks gets free bread for three years. The guy who supplies the wood gets free bread for as long as they supply wood. etc. Wouldn't this have a domino effect and start radically driving down prices?
thebeardslastcall Posted January 27, 2017 Posted January 27, 2017 Reset the economy? You mean like with an asteroid? Or you just mean a new currency? Currencies are violently controlled in the United States, that's why you can't do anything like a "reset" there. You have to pay taxes in dollars, which is constricting, and if you try to use an alternate currency they'll violently inhibit you or tax you even more. Capitalism and free trade are strictly banned in the United States, which is why suggesting the USA is capitalist is a total joke, because Americans lack the most essential elements for capitalism to actually function.
shirgall Posted January 27, 2017 Posted January 27, 2017 I think I already know some problems with this idea, but I'd like to hear some thoughts from those who are more knowledgable with economics. Why doesn't someone "restart" the economy? For example, a baker who makes and sells loaves of bread for, let's say, 10 cents a loaf. Obviously people would flock to that baker to get the same item for wayyyyy cheaper than they could get in the store. So the consumer being there wouldn't be an issue. I know the big problems would be the cost to the baker, but why couldn't they strike a deal with a wheat grower? Or open up a shop run with solar power? Or bake in wood fired ovens? The guy who supplies the bricks gets free bread for three years. The guy who supplies the wood gets free bread for as long as they supply wood. etc. Wouldn't this have a domino effect and start radically driving down prices? Taxes have to be paid with dollars, so sooner or later one has to exchange value to get them. That's the anchor to the old system.
DaVinci Posted January 28, 2017 Author Posted January 28, 2017 I'm not saying make a new currency, but rather drop prices on a good, like bread. The wheat grower grows wheat and charges $2.50 a bag instead of $250 a bag to the baker who makes bread for .25 cents a loaf instead of $2.50 a loaf, etc. Everything is still happening in dollars. Consumers go to that bread baker, or go to that wheat provider, which starts a race to the bottom as more people/businesses do the same thing.
thebeardslastcall Posted January 28, 2017 Posted January 28, 2017 People already set their own prices. There are realistic constraints on their ability to do so. You can't buy more things or pay your bills if you make yourself broke and each person can only do so much, labor wise, and resource wise, based on how much they've got. Also of relevance to most people is wanting to get something out of providing something, like bread. You're asking why everyone doesn't just adjust to some new baseline as if their current position is arbitrary? There are many anchors on the current price as many debts are owed and everyone changing to some new arbitrary baseline would be costly and it also changes the relationship with all the stored wealth. Prices are what they are due to all these anchoring forces and limitations and due to individual desires as well. What would be the point of just arbitrarily trying to switch to a new baseline if it gains you nothing and costs you something to do and ignores all current debts and resource amounts people have?Have you thought through what would happen for your suggestion at all? What do you think would happen?
DaVinci Posted January 30, 2017 Author Posted January 30, 2017 I'm not sure exactly what would happen. I just don't see why it is unfeasible. There is a work around for everything. Don't start a business in debt. Hire people willing to get paid a small amount, or have volunteers. etc. Isn't the entire idea of a business that you have to take a calculated risk and in return is a potential success equivalent to the risk? Isn't all this "yeah, but taxes" "yeah, but bills" the kinds of things people say to themselves to talk themselves out of taking a risk?
thebeardslastcall Posted January 30, 2017 Posted January 30, 2017 I don't know what you're talking about. If you want to start a business go for it, we're not stopping you.
DaVinci Posted January 31, 2017 Author Posted January 31, 2017 I'm talking about the state of the economy. Isn't the goal of many economists to get us back to when things were produced that were good quality, affordable, and the people who made them made a decent wage? I'm asking how we can ever get back to that without resetting something. A wheat grower sells wheat for cheap to a baker who sells bread for cheap who gets a flock of customers who want good quality cheap products. Others to start to copy this model. Prices start to plummet as everyone is undercutting the big guys.
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