I love that using money as TP is a legitimate concern there.
Just as a reminder that things can always get worse, the Greeks are stockpiling canned goods.
Greek citizens fear the ramifications of a return to the country’s previous currency, the drachma, if the radical left-wing party and strong election contender SYRIZA wins this weekend.
Bankers said daily withdrawals from the major banks were hitting €500-€800 million ($631.8 million-$1.01 billion), Reuters reported.
Meanwhile, retailers say consumers are stocking up on non-perishable foods like pasta and canned goods.
Because I’m pretty sure that’s all we can do at this point:
Schumpeter talked about the “creative destruction” of capitalism; essentially, that resources are constantly being reallocated and as a result businesses are always rising or failing. This is important to understand, because whether a business is profitable or not is a determination of how well it uses its resources. If a business is essentially prohibited from making decisions on how to efficiently use it resources, it will fail. The ones that don’t fail will be stagnant, and will probably be large corporations, as noted in the article. Those corporations eventually won’t be able to survive without government support, thus adding even more inefficiency to the system. It might be quicker just to round up everybody’s cash and burn it in a smoldering heap, except the paper isn’t worth anything anyways so I guess that wouldn’t really accomplish much.
The dynamism of capitalism is what allows people to flourish, because it is able to react to changing needs/ wants in society. To restrict that movement increases inefficiency and ultimately wastes resources and will end up harming the very people they’re trying to help. But what else is new?
I was reading a paper that I originally saw on Zero Hedge, and I will quote a few paragraphs that I think are relevant to our current economic situation:
Variability in time preferences changes interest and capital formation. If lower time preference and higher savings and lower interest rates created higher valuations in earlier-stage capital (factors of production) which initiates a capital investment boom, this newfound excess profitability would be neutralized by lower demand for present consumption goods and lower valuations in that later-stage capital. (John Maynard Keynes’ favored paradox of thrift is completely wrong, as it ignores the effect on capital investment of increased savings, and resulting productivity—and ignores the destructiveness of inflation, as well.)
For a while I’ve been struggling to understand Romans 13:
13 Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God.2 Consequently, whoever rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves. 3 For rulers hold no terror for those who do right, but for those who do wrong. Do you want to be free from fear of the one in authority? Then do what is right and you will be commended. 4 For the one in authority is God’s servant for your good. But if you do wrong, be afraid, for rulers do not bear the sword for no reason. They are God’s servants, agents of wrath to bring punishment on the wrongdoer. 5 Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also as a matter of conscience.
6 This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing. 7 Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.