doodles on economics

// started on 30/04/13, published on 03/06/13, edited on 24/06/13, 13/04/14

this is another one of those more explorative blog posts, where I more or less arbitrarily jot down my thoughts on a subject without any attempt of being complete or useful.

this time round it's about certain economic axioms which seem conclusive to me but which I would like to see challenged. to some of you this might seem like a manifesto against neo-liberal economies, to others just as a call for more state intervention and regulation.

Axiom 1: In an unregulated or loosely regulated economy competition ensures the efficiency of organizations with regards to the internalized costs.

Axiom 2: In an unregulated or loosely regulated economy competition will always be challenged by syndicates.

Axiom 3: syndicates will grow depending on the elasticity of demand. the growth will either increase the members in the syndicate or the share of wealth each member gets.

Axiom 4: In an unregulated or loosely regulated economy profitability (that is the ability to produce at lower costs than competitors) is mostly determined by capitalizing on uninternalized external costs.

Axiom 5: In an unregulated or loosely regulated economy monetary interests always trump ethical and moral considerations in the long run.

Corollary from 4 and 5: In an unregulated or loosely regulated economy profitability is inversely proportional to sustainability.

Axiom 6: In an unregulated or loosely regulated economy the profits of a business benefit the owners disproportionately.

Corollary from 1-3 & 6: This disproportionate benefit for business owners is further accentuated due to the replacement of human workers by technology.

Terms: an unregulated or loosely regulated economy refers to the classical Nachtw├Ąchterstaat

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