Topic: A lesson from Scrooge McDuck

Here is a simple lesson as learned from Scrooge McDuck, Hewey, Louie, and Dewey, as well as their beloved, but very lazy Donald Duck.



If Scrooge is taxed 100% on his income, what is the result? Well he wont lose a single penny from his vault, and poor Glomgold and Rockerduck will always remain 2nd and 3rd in total values. Nor will they lose any of their savings.

Instead they would lose reasons to keep employees. Equipment breaks, and it costs money to replace it. If there is no income generated then why should they cut from their own cash to replace it when the same effect can be to fire everyone?


If Scrooge has the more modest estimated savings of 28.8 billion dollars, then we must look at the chances of his hard working nephews to earn this much with a tax rate that punishes growth.

In short if they are taxed at an outrageous level they can never hope to get up with Scrooge, for the box is closed.


Scrooge still maintains his wealth, he is not hurt at all. Nor is the other rich guys.


Look I am a little tired here today, it's the end of the day and it's been hell the last two days. I hope you understand the entire basis of the story here.




The basis is that of course the rich support Obama's tax plan. They can ride it out for 20+ years with their current accumulated wealth. They can finance other campaigns when they want to remove the effects of Obama.


With the resulting crash of our economy they hope to scoop in and take a lot of our economy over that they did not have before.



Controlled markets and socialism are friends to these guys, a free market is the poison needed to make them weak. They must constantly fight the market then to stay on top and not lose EVERYTHING.

Only the free market can make them lose their accumulated wealth, not socialism.

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
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Re: A lesson from Scrooge McDuck

Hold on.. Socialistic ideals are now protecting the compagny owners rather than the employees?

Flint, your scenario is terribly out of touch with reality...
1) there will never be a 100% tax
2) that duck would lose money, as he has expenses as well.

What socialism is about is this: it tries to accumulate the part of their incomes that won't be used other than saving it. That money is used to support other economic players. Scrooge McDuck is a good example of that. All the money in his vault is doing nothing at all, except draining the economy from money that could be invested in new projects etc.

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

You create investment by forcing them to invest by having a free market.

His expenses are so small compared to his wealth, you are using a straw argument there.
Forcing to invest is not via government, but by competition.

The only way a rich man loses everything is by failing to compete well

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
Avogardo and Noir ignored by me for life so people know why I do not respond to them. (Informational)

4 (edited by Little Paul 31-May-2009 17:11:42)

Re: A lesson from Scrooge McDuck

"All the money in his vault is doing nothing at all, except draining the economy from money that could be invested in new projects etc."
Its not that simple WFS.
If you give your money to the bank, the bank uses your money.
If no-one uses your money not even you then all other money increases in value.

Re: A lesson from Scrooge McDuck

That's the whole point Flint. The ultrarich can not be forced to invest out of free will: they just can't be bothered anymore..
Also, redistribution supports those without an income the most, and by doing so they can spend it. Spending money makes sure the demand doesn't expire wich would only lead to more bancrupties and such.
By supporting the small man with all sorts of business starting bonusses, you also offer him the money and possibility to start an own business.

In a free market economy, without redistribution at all, a ever increasing group of people is excluded from the economic machine and it leads to horrible economic crisisses like in the 1930's.

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

"If you give your money to the bank, the bank uses your money.
If no-one uses your money not even you then all other money increases in value."

Banks do reinvest. I was talking about the Scrooge McDuck vault, in this case.
In case of the banks, it's indeed reinvestment, but the a large quantity of the profit of these investments is sucked up by the banks themselves. Governemnts who redistribute wealth do the same, but without the need to gain money themselves as much as banks do.
Thus: a redistributing authority is defenatly economicly justified.

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

Take Bill Gates as an example

He had to keep working for his fortune.

If he let up then Google could have made an OS

Apple might have passed him

Linux might have had a prayer at success.



He kept working cause if he did not then his stocks would drop, and his net value would drop.




Now take Soro's. He has to keep working as well to keep his status, unless suddenly he has no competition. He buys up currency that gets devalued, but also has bought companies that are devalued. Now others cannot buy it cause they do not have the wealth yet, but he can cause he does.



Trump:

He owns how much property? He can sit on it forever with the income of the property paying the taxes on the property. But if someone comes along with bigger and better, he is screwed. Under socialism this cannot happen, so he is safe to do as he wishes.

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
Avogardo and Noir ignored by me for life so people know why I do not respond to them. (Informational)

Re: A lesson from Scrooge McDuck

Why the hell would you keep all your money in a vault anyway?  With no way that money is making a return on investment, the only market influence then becomes inflation, slowly eating away at its value.

Make Eyes Great Again!

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Re: A lesson from Scrooge McDuck

I have one thing to say on this matter and one thing only

When the seagulls follow the trawler it is because they think sardines will be thrown into the sea

tweehonderd graden, dat is waarom ze me mr. fahrenheit noemen, ik reis aan de snelheid van het licht, ik ga een supersonische man van u maken

Re: A lesson from Scrooge McDuck

"Take Bill Gates as an example"

He's the only one who I know of the three you mentioned, so I'm only going to discuss him.

"He had to keep working for his fortune."

Not true. He willingly resigned the CEO position to Ballmer so that he could do what he wanted to do. He holds quite some shares in Microsoft and doesn't need to work. He quit Microsoft a while ago and he passed all the other richest people in the world in rocketspeed.

"If he let up then Google could have made an OS"
"Apple might have passed him"
"Linux might have had a prayer at success."

Irrelevant, and in most cases untrue, I think. None of those were ever in the position to threaten Microsoft's position. Microsoft had only 1 main competitor (for a little while), wich was IBM's now defunct OS/2

Anyway, Bill Gates is a good example of money not being used in the economy. He'll never be able to spend all the money he has in his lifetime. It just sits there and that's a drain.
He had 58 billion (in Euro) at the start of 2009 according to Forbes. Imagine that he gave every American 20 EUR (wich is possible), then you'd all buy something with it, wich would boost the economy more than when he just keeps it.

I'm not saying that that should happen, all I'm saying is that a redistribution of wealth by the authority is economicly justified. The degree in wich to do this is somewhat of a different matter though.

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

Well in the cartoons this is noted to be a small, tiny, minuscule sample of his money, sort of a savings account he can be sure of.


The sum of Scrooge's wealth is disputed.[11] According to Barks' The Second Richest Duck as noted by a TIME article, Scrooge is worth one multiplujillion, nine obsquatumatillion, six hundred twenty-three dollars and sixty-two cents.[12] Don Rosa's the Life and Times of Scrooge McDuck notes that Scrooge amounts to five multiplujillion, nine impossibidillion, seven fantasticatrillion dollars and sixteen cents. In 2007, Forbes listed his wealth at a much more modest $28.8 billion.[13] Barks himself has said that the fortune is five billion quintiplitilion unptuplatillion multuplatillion impossibidillion fantasticatrillion dollars. Whatever the amount, Scrooge never considers it enough: he has to continue to earn money by any means possible.

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
Avogardo and Noir ignored by me for life so people know why I do not respond to them. (Informational)

Re: A lesson from Scrooge McDuck

How do you store five multiplujillion dollars in a swiss bank account?  That must be hell on their accounting records.

Make Eyes Great Again!

The Great Eye is watching you... when there's nothing good on TV...

Re: A lesson from Scrooge McDuck

And that's relevant how?

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

Funny how socialism didn't produce a good desktop pc

Or no, it isn't funny.

China thrives by demanding not only divestment of capital but labor

Somehow Europe doesn't seem able to create the sense of community that allows you to work on state projects for free

Must be some racial failure...

You rightwing roundeyes are too lazy

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: A lesson from Scrooge McDuck

> Irrelevant, and in most cases untrue, I think. None of those were ever in the position to threaten
> Microsoft's position. Microsoft had only 1 main competitor (for a little while), wich was IBM's now
> defunct OS/2

BeOS could have been a contender. Microsoft has been pretty anti-competitive over the past 15 years.

> He had to keep working for his fortune.

And he was anti-competitive.

Morbo: Morbo can't understand his teleprompter. He forgot how you say that letter that looks like a man with a hat.
Linda: It's a 't'. It goes "tuh".
Morbo: Hello, little man. I will destroy you!!

http://www.youtube.com/watch?v=cpP7b2lUxVE

Re: A lesson from Scrooge McDuck

> Wild Flower Soul wrote:

> Hold on.. Socialistic ideals are now protecting the compagny owners rather than the employees?

Flint, your scenario is terribly out of touch with reality...
1) there will never be a 100% tax
2) that duck would lose money, as he has expenses as well.

What socialism is about is this: it tries to accumulate the part of their incomes that won't be used other than saving it. That money is used to support other economic players. Scrooge McDuck is a good example of that. All the money in his vault is doing nothing at all, except draining the economy from money that could be invested in new projects etc.


That is your definition of socialism.

Re: A lesson from Scrooge McDuck

>>All the money in his vault is doing nothing at all, except draining the economy from money that could be invested in new projects etc.<<

Conveniently missing the point that socialism is what makes him keep money in his vault, reducing investment, employment, and wealth creation.

>>there will never be a 100% tax<<

Conveniently missing the point that, the higher the tax rate is, the more difficult it is to return a profit on investment and the better sitting on one's wealth is as an option (better for the wealth holder, worse for the economy).

>>What socialism is about is this: it tries to accumulate the part of their incomes that won't be used other than saving it.<<

And it always fails to. People with money to lose to taxes are aware of taxes and tax law. When you valiantly tax any type of income a higher rate to make the rich carry a heavier burden, the only effect is causing them to avoid that type of income in favor of less-taxed options. It's just good business sense. And everyone knows it but the leaders who abuse the claim of taxing the rich for power and the ignorant people who buy into this load of crap because it sounds just to tax the rich, regardless of the fact that it doesn't result in the rich paying more taxes.

lol. Sitting Duck sums it up well.

>> It just sits there and that's a drain.<<

Take economics 101. Go to school. Read a book. I'm done.

[I wish I could obey forum rules]

Re: A lesson from Scrooge McDuck

There's a difference that's rather fundamental difference: communism doesn't equal socialism. I never claimed the free market economy should disappear entirely. It's the most favourable model and I do defend it.
I just think it should be of service to everyone rather than a lucky few. Redistribution of some level is needed or it ultimatly leads to overproduction and a terrible economic collapse like in the '30s.
With redistribution I mean: government support for new compagnies (a tax cut or cheaper loans for example), a money bonus for kids parents have, scholarships, a fund for people with long term diseases (like cancer: not to cure them per se, but make sure the disease doesn't strangle them economicly), scaled taxes, money for the unemployed (although it should be combined with inspection that they actually look for work) etc.

"Take economics 101. Go to school. Read a book. I'm done."

I had economics, I had economical history, I know what I'm talking about..

"And it always fails to."

Then why on earth is one of the best Western economies doing this with great success (Norway) while the paradise of free market in it's purest form (the USA) struggling to keep going?
Congratulations on GM going bancrupt btw wink

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

We already have those things you speak of, and I agree they are necessary (in a principled, pragmatic, and moral sense); they're just horribly managed by the same government that is now taking on new programs to horribly manage in the same way. No one here (including 99% of the "right" in America, which is pretty far left) proposes that such government incentives (that's right, government involvement) as those you listed are a bad thing or that we ought do away with them. tongue

Redistribution is not necessary to avoid overproduction and terrible economic collapse. Responsible capitalism (responsible meaning with the obvious and not so obvious government safeguards [enforced], neither of which the US government is any good at) takes care of that just fine. Only Marxist economics professors go so far as to teach their faith that socialism is ultimately and naturally the next stage of civilization after capitalism--whether or not they are correct in their assumption that this is the ultimate and "utopian" state of civilization which is more just and provides a better (not just equally impoverished) life for all its citizens is something which all indications say is being tried right now in the USA. I can't wait to see what happens. I'm going to try to act surprised. big_smile

[I wish I could obey forum rules]

Re: A lesson from Scrooge McDuck

"Redistribution is not necessary to avoid overproduction and terrible economic collapse. Responsible capitalism (responsible meaning with the obvious and not so obvious government safeguards [enforced], neither of which the US government is any good at) takes care of that just fine. Only Marxist economics professors go so far as to teach their faith that socialism is ultimately and naturally the next stage of civilization after capitalism--whether or not they are correct in their assumption that this is the ultimate and "utopian" state of civilization which is more just and provides a better (not just equally impoverished) life for all its citizens is something which all indications say is being tried right now in the USA. I can't wait to see what happens. I'm going to try to act surprised."

What you call "responsible capitalism" is what we call realistic socialism. We both seem to agree that it's needed, thanks for that! The difference lies in this: I don't tie the word "socialism" to Marx, wich apparently is still a true devil in America and can't be looked at from a neutral position. Marx wasn't a political mind, but a typical 19th century "scientist"..

And I do think that if there's no redistribution at all, it does lead to a collapse. If there's a mass of unemployed people who don't get anything from the state by redistribution, they can only live off charity. Thus, they're unable to contribute in the economic system. Free market economy needs economic growth and thus more demand, but when a group isn't able to participe it leads ultimatly to overproduction..

It took quite some time to reach it (more or less the entire "long 19th century"), to collapse in the 30's, but the system had it coming..  There was a whole range of new products and improved products for a group that got too small for the industry producing them. Production volumes were decreased, wich meant more people were made redundant, wich again decreased the demand for those products and so on...

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

when you agree to "redistribute" you end up paying more for red tape than in payments to the "deserving".

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: A lesson from Scrooge McDuck

please elaborate?

God: Behold ye angels, I have created the ass.. Throughout the ages to come men and women shall grab hold of these and shout my name...

Re: A lesson from Scrooge McDuck

>>What you call "responsible capitalism" is what we call realistic socialism.<<

I'm pretty sure my "responsible capitalism" which takes freedom and then adds those government controls which protect the rights of contract holders, property holders, etc. is a bit more on the realistic or responsible capitalism side than responsible or realistic socialism side.

Many in Amerika have taken a great liking to Marx. I just don't like him because I've read a number of his works and I think he's an idiot. tongue I find many of his claims unsubstanciated and so what he builds upon them makes me shake my head that this poor bloke needed to get a real job producing some sort of wealth before he proclaimed himself wise and wrote about that which he did not understand. So while not everyone has a problem with Marx, as a PR move a real discussion of the US's move toward socialism isn't found ANYwhere among ANY of its most avid supporters. Which is why I proclaim the whole thing bullshit garbage and immoral--The discussion is fine (and good). Supporting socialism is fine (if not good tongue). But underhanded tactics which include openly lying about one's intentions I'm not a big supporter of.

>>If there's a mass of unemployed people who don't get anything from the state by redistribution, they can only live off charity.<<

Living off the state by redistribution IS charity.

>>Thus, they're unable to contribute in the economic system.<<

People living off charity do not contribute to the system anyway--they merely spend the earnings of those who donated, earnings which would have been spent by their earners anyway. We have redistribution in the form of unemployment and welfare. It's good for our economy because people who can't bathe and wash their clothes or feed themselves and their families tend not to find new work and resume contributing to the system.

But when "redistribution" ceases to be this pragmatic and utility matter I just described, it becomes entitlement of low-income earners wanting more because they decided they deserve it and there's enough of them to vote that government force be used to cease it and give it to them. And this becomes problematic, to use the euphemism of the century, because it brings in government bureaucrats to decide how much to shave off of who and how much to give to who for wealth each creates. It short-circuits all of the natural motivations a free market naturally creates for people to work harder and produce more in order to better themselves (better yourself by bettering humanity... what a radical idea this capitalism thing fosters!). Because in a free market, you get rewarded by producing what people want and need. And the more of what people want and need you produce and the better it is, the more people are willing to pay for it--the more you produce and the better it is, the more you are rewarded for making it! But even such a simple motivation which has rocketed the USA to economic superpower unparalleled in human history is ignored in the redistribution being discussed here. Discussed here is a fine idea that short-circuits this most basic motivation capitalism provides for everyone to work harder and better for others in order to be rewarded. Redistribution here encourages laziness by paying it (don't bother working, they'll pay you not to and it's a lot less work!). Redistribution here assaults motivation to excell and be better than your competition because hey, you're not going to be rewarded for working harder, you'd have to be stupid to bust your ass when your reward is the same as the idiots you work with who slack and do a fifth of the work you do on their good days.

Redistribution does not "allow" anyone to "contribute" to the economic system. Creation of wealth contributes to and expands the economic system. Encouraging hard work and innovation (and that means rewarding it) expands the economy. Taking from the successful and giving to the have-nots does not.

As much talk as there is about the gap between the rich and the poor, it is and has always been and will always be nearly unimaginably large. Maybe you have a much greater mind than me, but comparing myself to someone with 10 billion dollars and comparing myself to someone with 50 billion dollars reveals pretty quickly that they're both just so unimaginably huge I don't really think I'd be able to discern a difference in the gap. Regardless of this gap, it's not because of redistribution that we're not still experiencing the crash of the 30s. People enjoy, on average, better pay and a better standard of living today WITHOUT redistribution.

The only things redistribution contributes is bureaucratic costs, injustice, and stiffled motivation.

[I wish I could obey forum rules]