Obama Stimulus Check

Continued from Economic Myths Part1 , Economic Myths Part 2, Economic Myths Part 3 and Economic Myths Part 4

This completely demolishes my critic’s view that “that productivity is used to supplant labour, not to enhance.” It should now be clear that he has committed the lump-labour fallacy which basically argues that there is only a fixed amount of work1. Not that he will be persuaded. He is convinced that technical advance in medicine prove that productivity destroys jobs. Hence: “But to say that the replacement of their labour (doctors and nurses) with new products of productivity will increase their wages and make the cost of medicine decrease is pure idiocy.” Who said machinery would replace them? Moreover, their wages have not been falling. But it needs to be said that in a dynamic economy some people do suffer transitional income loss. Let’s not forget what the oil lamp did to the candlestick maker and the car to wheelwrights, smiths, saddle makers, etc.

As for the falling price of medicines, he obviously cannot see that medicine today is not what it was yesterday. Medical technique’s are becoming more complex as they advance. Even so, ordinary people have access to drugs and medical procedures that were only dreams 20 years ago. And capital accumulation has made this possible.

My critic (I’m whom I’m tempted to call a cretin) stated: “So capital is what creates jobs huh? If that were the case, then all of us would be rich. Get this straight…there is no lack of capital…none. The problem is lack of anyone having the capability to buy what capital is creating.” If there was “no of capital” all plant and machinery would literally be free because as I said in Part I capital is the +material means of production. This cretin (I’ve decided to call a cretin a cretin) seems to believe that credit equals capital. If only it were so. Any economic policy based on this idiocy eventually results in hyperinflation.

Continued at Economic Myths Part 6