There is no such thing as economy science. Economy is Sex and division of labor? OK lets be a little more serious, Economy is a part of Human Sciences, just like philosophy or psychology. It can not have the same characteristics as Physics as phenomena can not be repeated to get a proof, because it has no inherent equlibrium and is linked to a type of organized Society which has a Power grab structure and non rational behavior such as the Standard Model in physics.Economy is always a political economy, it can be structured in Theory, but the Point of View is adamant for explaining its working.Here Witchdoctor will prove what is dependent of the shift of the point of view and how a new set of economic laws comes out of the shift.The way one looks changes the law.This is the new perspective;
Profit = the excess saving
Profit, a mysterious entity which all economists try to define, is just a thing which one has left after paying all the costs, the taxes and it comes after investment money. It is the excess saving even after when the Owner pays himself an unbelievable sum as a wage.
So, we can conclude that profit is the stolen sum from the working wages and from the environment, and from … you name it.. Especially when the Investment part of the money has been already put aside.
BUT, for the shareholders the profit = interest on capital
The shareholders- the ones who buy the share and invest-the outlook-view- on profit equals the interest on capital.
So, the profit turns in rent seeking position and functions just like the interest. The funny thing is, that not only profit is having the same status as interest (on debt), but there is more. The capital in this status position achieves in this story a leverage. It can grow in value, regardless of any factor except the demand for the particular share. And here is the reason of the BUBBLE. The tulips in Holland, remember?The share just grows and grows just like baking the bread. The yeast here is anything, from Central Bank QE to greed. Later, Witchdoctor will tackle the Demand.
Wage = Fiction
That wage is a fiction, just look around. Do you think that 50 million dollars a year for some banker or manager is a real wage, do you think that the Broker is a real wage, or some professor of economics or cohortes of millions of well paid and useless people, or politicians, sycophants,or some crazy doctors wage (compared to car mechanics, which is similar to surgery)?
Wage = fiction = proven by the Union movement.
The stronger the Unions of workers in History the higher the wage and less working hours. So, there is no science there in it, it is the power struggle.Same goes for any other human right.It is all human sciences, limited as they are.
Witchdoctor came to know years ago some industry owners from North Italy, which said to him, years ago, after a good dinner and lots of wine,that they are ashamed to pay their workers so little, but they had to, if not, the other owners would have lynched them. Fiction In work.
The wage = pay +extra money as personal debt
The wage has to be constructed in such a way in the debt driven economy that the wage is not enough and so the persons have to borrow. This is the rule.They have to be in debt, from 40% to over 100%….
The situation when a household has profit=excess saving is not natural and very scarce and the debt driven economy political ideology is against it. Adamantly, they do not like it, the Masters and producers.
TAX = Scam
Taxes are a scam , but not how the right wing libertarian or Trump Very Rich assume. It is the opposite, they do not want to pay anything and the system is geared for them..Today tax is just a way to enforce the currency – thou shall pay only with this paper which is mine because you will pay to the Ceasar with his money..
Tax is needed in a fiat money only for controlling inflation. This is valid when the system, lets call it a State, which is an obsolete concept- is in dynamic equilibrium between agregates.. Bank of Canada 1935- 1974 is the ultimate proof.
So the excess tax is needed to pay the debt occurred and accumulating in the debt driven economy (over 40% of all GDP), plus to pay the system. But the system such as is in the Decaying West is already chronically under financed. See other posts .
Debt = Fiction
Debt is a fiction concocted to control the money circulation and the direction of money accumulation and profit seeking. The other way to look at the debt is that for the Sovereign it is not needed just like in Debt free money or, like in having a gold mine and the cost of gold is the cost of digging it, and all other=price-capital-control-monopoly is debt free.
Witchdoctor is just outlining some different points of view on the same phenomena… a house of cards in all significance of the term
INTERMEDIATE CONCLUSION
The pyramid of social organization, as it by chance and not by 100% necessity came out of History is a political construct, based on hierarchy of power and greed. The categories within are arbitrary and based on the social and money and ownership hierarchy…. There are market forces working on the ground, no denying it, there is exchange going on., but the ways and results are not obvious. Only some general trends, due to the limits of space/time can be extrapolated and the general direction and some temporary laws can be applied. The system also changes and shifts.
The marxist outlook, like in sex and division of labor mentioned above, or the classical economy or the neoliberal economy are just ideologies of the forces involved in the Power grab or struggle, and they are used as ex post pseudo scientific proofs, but they are just a point of view of the participants and used for winner takes all over..Pick you side.
But always there is the First Rule to consider;
FOLLOW THE MONEY and the concentration, look for chains of exchange/accumulation and where they lead..
Demand = Fiction minus basic needs
That demand is a fiction minus basic needs, such as food, water, energy and housing is proven in many ways. The first way to prove that demand is a fiction is that many do not have even the above basic needs, Want some explaining? No.You clever perverted monkey. No science in demand.Just Power and Greed.
Next proof that demand is a fiction is something like, do you really need a big, costly SUV? Now, if you ask Witchdoctor, the whole industry will close, because WD is not putting any demand for it. So, it is a Fiction,you deluded sod.Because in science it does not work like this, i like it or i do not like it and lets make the law out of it. No science and general law here, except the Witchdoctors nondetermination.
Do you need some other status symbol ? Status symbol is the fiction you live in and on it.To distinguish yourself but just a bit… It can be some sneakers, which cost the same 2 dollars but you buy them for 150 dollars. Do you like to swim in chlorinated, never changed, always recycling, same water turning pool? Take it.
Do you like to spend your holidays sizzling and frying on the sun and going in to the sea just to piss, by doing so you have built the whole industry,cementified the whole Earth beaches,invented all kinds of services industry (sex and the division of labor) got skin cancer, been hot, eaten bad but there were some sexy girls/boys passing by and you thought you are relaxing or whatever, or you went for it because all others went for it…Pure fiction.
The Herd instinct=Demand
This is not science, it is a mass delusion (Wilhelm Reich, mass psychology of fascism) and so it must be treated. But if you want to make a science out of the herd instinct, then you have to close the 90% of the population in an asylum. No economical science here,too.
And were are entering
The sex and division of labor
Now , the human parasite always invents ways to make money, and by going further in history, by necessity to find a profit niche, like the apps and similar, to catch this profit (above) it invents “jobs”. This jobs may look and to many, depending on which stage of the wage and profit ladder, they are just fiction.Ultimately, after Fordism, it is like walking the dogs,personal training or splitting any function which can be split.It is called services and sex comes in. The UBER SEX gig economy.
The last stage of monetizing the all possible functions one can imagine.
But the symptom of this UBER SEX GIG is that most of this future splitting of the functions of demand fiction are basically paid little, except for some really sexy girls.Being sexy as the ultimate
demand = fiction.
Capital and Work
This preposterous title, not marxian at all, but WD studied the subject for years at the Uni, that is why he is barking mad and pissed from all of it,, is very apt and here we are entering even more serious grounds. Not that the other above was not serious, it was just-… as it is…
This chapter is due to a person. Mato Gostiša. He is from Slobanja. All credit goes to him, Witchdoctor will try to make a short resume´.
The basic and in fact revolutionary postulate that Mato Gostiša points of the neoliberal system as it is today is that the grounds and causes and effects which arise from it , the disaster it has provoked,are embedded in a Legal Framework!
It is not economy as a science, you sods, it IS LEGAL Grounds on which it is based.. The Legal postulates, which legally divide and give different legal meaning for Capital and Work, completely obsolete in a current economy. The legal difference between Capital and Work.
A small example-IBM today.
IBM no more produces any hardware at all. All IBM capital is Knowledge Capital. But the problem is legal. The Owners of the Knowledge are on one side, the people who are hired to work for a wage and which produce knowledge are on the other side. They are legally differentiated and the whole knowledge capital is treated just as hired workforce. The legal grounds of ownership go to the Capital Owner and the real Capital -the People which Produce Knowledge are just hired workers.The legal Difference between Employer and Employee.The archaic, almost neolithic remnants of a passed era.
The workforce market functions as a legal constraint. In fact there is no free market of labor, there is only a subordinate monopoly.
Another myth of economics went in rubbish..
If you sell the work, you sell the Person – Mato Gostiša – on slavery, added by Witchdoctor
The Conclusion
In order for a capitalist system to survive, there must be established anew the Legal Partnership between the Employer-Capital Owner and the Employees- the Knowledge Owner. The Legal Partnership Association of Financial and Human Capital with shared corporation rights…is the way to reduce without the taxing tool the dichotomy/divide between Capital and Work
The Legal Framework, not on voluntary basis.
One can start from here, a minimum.
You see? The myths of economy and then, it was just a legal catch?
Science my ass.Rubbish.