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View Diary: The GOP is in Full-On Loser Mode, So Let's Bury Them All In Anvils (150 comments)

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  •  High profits are necessarily small markets. (3+ / 0-)
    Recommended by:
    pengiep, sethtriggs, nolagrl

    This isn't discussed nearly explictly enough.

    The Lump of Labor fallacy has a kernel of truth.  "For any given rate of return X, there is only so much work Y to do".

    If you want a 10% rate of return, Y is much smaller than a 5% rate of return or a 1% rate of return.  In theory, this growing pyramid is why depressions should be very rare - as interest rates fall, and money becomes available at lower capital rates, more work becomes profitable.

    However, corporations are rarely interested in "profitable" as a strict criterion.  They want the most profit, which often means leaving entire economic areas fallow because "there's not enough money in it".

    -7.75 -4.67

    "Freedom's just another word for nothing left to lose."

    There are no Christians in foxholes.

    by Odysseus on Sat Oct 06, 2012 at 10:59:50 AM PDT

    [ Parent ]

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