Realist, not conformist analysis of the latest financial, business and political news

Paul Mason In LaLa Land

The creators of money

Paul Mason tells us that the coronavirus is going to lead to an entirely new kind of economy. Bring on the Future, Brothers! On his analysis of where we are now he tells us that:

Capitalism, like all previous economic systems, is built on people’s work. We are compelled to get out of bed, cram ourselves into public transport, obey the instructions of managers and the discipline of the clock. And when it’s over, even as we huddle together in the pub, or play five-a-side or go out to dinner, we’re still generating returns to capital invested by someone else.

OK, so peeps go to work and produce things which are then consumed. All consumption in the economy is produced by that portion of it – some 50% or so of total population at present – who do go to work. The savings of some portion of the population – their deferred consumption – is what provides the surplus to be invested in the capital and machinery those workers use to produce stuff.

OK, so it’s all going to be different. In the new economy:

OK, so peeps go to work and produce things which are then consumed. All consumption in the economy is produced by that portion of it – some 50% or so of total population at present – who do go to work. The savings of some portion of the population – their deferred consumption – is what provides the surplus to be invested in the capital and machinery those workers use to produce stuff.

Yes, it’s all going to be very different indeed says that ex-music teacher, very different, can’t you tell? Because tracking all of this by chitties signed by bureaucrats is a much better system than chittes exchanged by those doing everything, isn’t it?

0 0 votes
Article Rating
Total
0
Shares
Subscribe
Notify of
guest

5 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Phoenix44
Phoenix44
4 years ago

Cut and paste error?

Spike
Spike
4 years ago
Reply to  Phoenix44

No, I think that is Tim’s thesis: That people produce stuff, invest stuff, and consume stuff, and will continue to do so. Voluntarily, I might add. Author’s point is that capitalism doesn’t work, we must blow it up “with a bazooka,” and start anew, as “none of the old rules worked” (no, indeed, not when “doing whatever it takes” is your only constitution). We’ll now take what we need, starting with intellectual property.

Spike
Spike
4 years ago

Short of the author’s premise (in perennial search for new data to build a story around) that the free market is sunk, the free market is changing to fight pathogens. Starting Monday, the New York Stock Exchange is closing its shouting pits and going to all-electronic trading, like the rest of the US. Boston suburbs are suspending their ban on single-use plastic, finding that using materials beats carrying a personal microbe pot. Who knew eco-values might not be supreme? (Who even knew what they are?)

Matt
Matt
4 years ago

All Bank of England notes are signed by* the chief cashier of the BoE. If those aren’t “chitties signed by bureaucrats” what are?

*ok, printed with a copy of the signature of

Michael van der Riet
Michael van der Riet
4 years ago

The La La Landers are welcome to work as little as they wish. JMK predicted that this would happen. Most of us prefer to work like busy little bees and swap some leisure time for all the extra goodies that we can buy.

5
0
Would love your thoughts, please comment.x
()
x