Comments by "DeoMachina" (@DeoMachina) on "Second Thought"
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@shaochiavang True I didn't actually give you the answer, here it is:
Recessions are bad because low growth means less incentive to invest money, and that means less money is invested. This is bad because companies need investment to continue existing. So during recessions we see companies collapse, people become unemployed and everybody gets poorer. This means that 100% viable companies stop existing because they can't produce 100 million dollars for the shareholders. It doesn't make sense, companies should only collapse if they can't pay the bills, not because they're 5% less profitable than before.
In a planned economy, companies don't need investment. They aren't expected to make profit. We work out how many resources are needed to keep it running, and allocate those resources.
Don't get it twisted though, this doesn't mean 'THE' Government is making the decisions. The Government that you know is made up entirely of the ruling class. They're not able to plan an economy, mostly because they don't want to.
But in Socialism, those people wouldn't be in charge. The working class would be, and would be making decisions based on whats best for them.
Finally, while the USSR and China had made some significant errors that did definitely kill people...planned economies are still way less lethal than market economies. Capitalism has killed more in a decade than Communism could in a century.
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