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ChrisCook:
Profit and loss are a zero sum.  Sharing a surplus is not.

Indeed.

And that pretty much dynamites Adam Smith and Ayn Rand, never mind their followers, right there.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Sun Mar 8th, 2009 at 09:00:19 PM EST
[ Parent ]
Depends. Freemarket evangelists will say that competition fuels innovation, and eventually progress. Rand went too far (I hesitate to call her work philosophy), but people do have personal motivations and goals, involving material gain.
What I'm saying is that "sharing a surplus", which does occur, if "institutionalized" *, seems to deprive the society of one of its main engines. Then again cooperative movements don't by all means exclude healthy competition - at least from what I understood.

I say society - some might simply call it capitalism.
*
for lack of a better english word at this late hour

Free at last! Free at last! Thank God Almighty, we are free at last! (Martin Luther King)

by ValentinD (walentijn arobase free spot frança) on Mon Mar 9th, 2009 at 08:42:36 PM EST
[ Parent ]
Free-market evangelists also say that imposing capital adequacy requirements on banks and insurance companies is unnecessary, because banks and insurance companies would capitalise adequately in order to avoid bank runs.

And we know how well that prediction worked out...

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 10th, 2009 at 06:14:29 AM EST
[ Parent ]

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